Women & Annuities: A Financial Advisor’s Guide (What Suze Orman Gets Right—and What She Misses)

Women face a unique retirement math problem. We tend to live longer, spend more years out of the workforce caring for family, and collect lower Social Security benefits on average. That combination makes reliable income especially valuable. Suze Orman is right to warn about high fees, long surrender periods, and confusing add-ons—but a blanket “no” to annuities can overlook situations where an annuity can meaningfully improve a woman’s financial security.

What Suze Gets Right

• Fees & complexity matter. Some products pile on riders you don’t need. Keep designs simple and transparent.
• Liquidity is crucial. Don’t lock up every dollar. Maintain emergency cash and flexible investments.
• Tax shelters on top of tax shelters? Putting annuities inside IRAs just for “tax reasons” rarely helps.

What That Advice Can Miss for Women

• Longevity risk. Women statistically live longer; turning a portion of savings into a paycheck you can’t outlive can reduce stress and portfolio risk.
• Sequence-of-returns risk. Market dips early in retirement can hurt more if you’re drawing income. A guaranteed base check steadies the plan.
• Caregiving & career breaks. Gaps in earnings can mean smaller Social Security—precisely where lifetime income helps.

A Woman-Centered Framework for Using Annuities (When They Fit)

1. Define your “must-pay” budget. Housing, food, insurance, utilities, essentials. Aim to cover these with predictable sources (Social Security, pension, plus annuity).
2. Choose the job for the annuity—then the type.
   • Immediate income (SPIA): turns a lump sum into a monthly check now; joint-life options can protect a surviving spouse.
   • Deferred income (DIA): buy today, income later; useful for longevity insurance starting at, say, age 80–85.
   • Fixed/MYGA: multi-year guaranteed rate for a set term; simple, CD-like alternative with tax deferral in taxable accounts.
   • Fixed indexed or variable with riders: only if a specific rider solves a need; compare all-in costs carefully.
3. Keep liquidity. 6–12 months of cash + a flexible investment bucket outside the annuity.
4. Mind taxes (especially in taxable accounts). Nonqualified annuities can defer annual tax drag; withdrawals are taxed “gains first.” Coordinate with your CPA.
5. Inflation plan. Consider an inflation rider, laddering start dates, or pairing the annuity with TIPS/dividends to preserve purchasing power.

How a Women-Focused Advisor Evaluates Your Options

• Income gap analysis: how large is the shortfall between guaranteed income and essentials?
• Spousal protection: joint-life payouts, survivor percentages, and cash-refund features so your heirs aren’t left out.
• Carrier strength: shop multiple A-rated insurers; compare guarantees side-by-side (not just headlines).
• All-in cost check: product expenses, surrender schedule, and available free-withdrawal amounts.
• Beneficiary & estate details: make sure the contract matches your real-life wishes.

Quick Example (Illustrative)

Maria, 62, will collect $2,100/month from Social Security; essentials are $3,200/month. Rather than taking all income from market withdrawals, she annuitizes a portion of her bond allocation to add $1,100/month, locking in her “floor.” Now the investment portfolio can pursue growth for extras—travel, grandkids, giving—without the pressure to fund groceries during a downturn.

Bottom Line

Suze’s cautions are useful guardrails, but many women benefit from some guaranteed lifetime income—especially when it’s right-sized, low-cost, and coordinated with Social Security and investments. Work with an advisor who compares carriers, explains trade-offs in plain English, and designs around your cash flow, longevity, and peace of mind.

This content is general education, not tax or legal advice. Product availability and features vary by state and insurer. Always review official disclosures and coordinate with your tax professional.