Susan Martinez sits at her kitchen table, calculator in hand, staring at her retirement account statement. At 58, she’s starting to seriously think about leaving her teaching job in five years. The numbers look decent at first glance, but then the questions start swirling: What if she lives to 90? What if healthcare costs soar? What if her investments take a nosedive just when she needs the money most?
Susan isn’t alone in this worry. According to recent research, over one-third of women fear they’ll outlive their retirement savings. The anxiety runs deeper than simple mathematics – it’s about the emotional weight of uncertainty in your golden years.
The Weight of ‘What If’
For many women approaching retirement, the transition from earning a steady paycheque to living off savings feels daunting. Unlike previous generations who could count on company pensions, today’s retirees face the challenge of making their nest egg last decades. The unpredictability of how long savings need to stretch, combined with the reality that women typically live longer than men, creates a perfect storm of financial wellness concerns.
A study from 2024 found that nearly half of American retirees experience anxiety over spending their retirement savings, with only about a third having a clear income plan. This uncertainty affects not just bank balances but emotional wellbeing – many women report lying awake at night wondering if their money will run out before they do.
Discovering the Annuity Option
Some women are hearing about annuities – financial products that can provide guaranteed monthly payments for life. At first mention, many react with scepticism. The word ‘annuity’ sounds complicated, and the insurance industry hasn’t always had the best reputation for clear communication.
But as women dig deeper, they discover that annuities can work like a personal pension plan. Instead of worrying about market swings or withdrawal rates, you trade a lump sum for a promise of regular monthly payments that continue regardless of how long you live. Fraser Allport, a financial advisor with over 43 years of experience, explains the appeal: ‘Annuities are increasingly being added to pension strategies because they provide what retirees want most – principal protection and guaranteed income for life. They essentially create a paycheque that lasts as long as you do.’
What Peace of Mind Actually Feels Like
For women considering annuities, the benefits often translate into emotional relief rather than just financial security. Instead of constantly monitoring account balances, you can wake up knowing exactly how much income you’ll receive each month. The fear of a market crash wiping out years of careful saving becomes irrelevant for the portion of your money that’s annuitised.
The flexibility appeals to many women as well. Modern retirement planning recognises that annuities can be customised with options for spousal income, inflation protection or even leaving something behind for children. Tax advantages allow your money to grow without immediate tax consequences, stretching your retirement dollars further.
Annuities can bridge the gap between what Social Security provides and what you actually need to live comfortably. For many women who’ve had interrupted careers due to caregiving responsibilities or who’ve earned less over their lifetimes, this guaranteed income layer provides crucial financial stability.
Making It Personal
Fraser Allport, owner of The Total Advisor based in Daytona Beach, Florida, understands that every woman’s situation is unique. As an Accredited Investment Fiduciary and Certified Estate Planner with over four decades of experience, he’s seen how the one-size-fits-all approach fails when it comes to women’s financial planning.
Many women prefer to learn about these decisions at their own pace. He offers consultations via phone, Zoom or in person, along with educational workshops that help women understand their options without pressure. The goal isn’t to sell a product but to help each woman find the approach that lets her sleep better at night.
For some women, that might mean putting a portion of their savings into an annuity to cover basic expenses, knowing that the rest of their money can remain invested for growth. Others might choose to annuitise a larger portion, prioritising certainty over potential higher returns.
The Decision Point
Research consistently shows that retirees with guaranteed income sources report higher satisfaction and less financial stress. The emotional benefits of knowing your basic needs are covered can be just as valuable as the financial protection itself.
Whether an annuity makes sense for your situation depends on your personal circumstances, risk tolerance and what keeps you awake at night. The key is understanding that you have options beyond hoping your savings last long enough. As more women approach retirement with the responsibility of managing their own financial security, redefining success and security becomes increasingly important.
For women like Susan, staring at those retirement statements, the question isn’t necessarily whether annuities are right for everyone. It’s whether the peace of mind that comes from guaranteed monthly income might be worth exploring – because in retirement, sleeping well at night might be worth more than any potential investment return.
