Poor market conditions combined with increased life expectancy may put some people at risk of out-living their savings during retirement.
According to a report by New York Life Insurance Co., this is particularly likely for women, who traditionally have a significantly longer retirement than men while weathering the same economic conditions beforehand. The company says women accounted for 64 percent of customers with fixed immediate annuities in 2009.
These fixed annuities offer tax-free savings and a steady stream of income throughout the remainder of the policyholder’s life. Its benefits may also be designated to a beneficiary for a set period of years, according to the Insurance Information Institute.
“Women are making a wise decision to actively ensure their retirement income needs are in place and the financial strength and peace of mind that come with this New York Life product is what they seek,” says Angela Kyle, senior vice president of the retirement income security division for New York Life.
New York Life was the first insurer to issue men and women the same premiums for its life insurance product, according to the report.