The value of a variable annuity fluctuates with the performance of those investments. In addition to the regular costs of an investment portfolio, an annuity also has certain insurance charges that can significantly reduce investment returns. If the annuitant dies before annuitizing the contract, some companies pay the beneficiaries the amount invested in the contract or the amount accumulated, whichever is greater. Investors are encouraged to consult a tax adviser for information on how annuity taxation applies to their individual situation. Women tend to invest their retirement savings in safer and lower-yielding assets than men, according to a 1996 report by the U.S. General Accounting Office.
Older women are particularly conservative.
Men in their 50s are almost twice as likely to invest mainly in stocks than women of that age group. Those women generally select fixed-income assets such as bonds. Women have longer life expectancies and often earn less than men, so they need to save more for retirement and, possibly, invest more aggressively. Rollovers and Distributions More and more women are pursuing successful careers that include moving between companies. Others are leaving the salaried workforce to launch their own successful businesses.