Single U.S. women may feel a lot more positively about owning annuities than single U.S. men do.
The LIMRA Secure Retirement Institute has raised that possibility in a new batch of survey data. Analysts based the latest slice on a survey of 1,130 single, retired heads of households. All of the participants were ages 55 to 79, all had been retired for at least one year, and all had household incomes of at least $35,000.
Fewer than one-third of the participants had annuities. Participants who worked with financial professionals were about twice as likely to own annuities.
The outlook of the female survey participants who reported owning annuities was much different from the outlook of the male participants who owned annuities.
The analysts found that owning an annuity had little effect on the men’s retirement confidence levels.
About 68% of the men agreed with the statement, “I will be able to live the retirement lifestyle I want,” whether or not they owned an annuity.
When the LIMRA institute tried the statement “My savings and investments won’t run out if I live to be 90 years old” on the men, owing an annuity increased the likelihood that the men would say “yes” only modestly — to 74%, from 68%.
For the female survey participants, owning an annuity had a much bigger effect on those two confidence indicators.
Owning an annuity increased women’s confidence in their ability to “live the lifestyle I want” to 71%, from 56%.
Annuity ownership also boosted women’s confidence in their ability to make their savings and investments last until they’re 90. Owning an annuity pushed the age-90 confidence indicator up to 67%, from 47%.
— Read Annuity Owners Are Different: LIMRA on ThinkAdvisor.