What really determines happiness for your clients in retirement?

While portfolio performance often dominates planning conversations, the foundation of retirement security lies in guaranteed income that clients can never outlive—regardless of market conditions or economic uncertainty.

Modern annuities can offer that security and help address specific demographic challenges that advisors face today.

Here are four innovative ways to rethink annuities in your comprehensive retirement planning approach:

1. Focus on Stability, Not Excitement

The most effective advisors understand that annuities may not be the most exciting products, but they do provide unshakeable stability that enables excitement elsewhere in the portfolio and dependability for long-term income.

Lifetime income annuities create a foundational layer that helps remove three critical risks from your clients’ retirement equation: sequence of returns risk, cash flow risk, and longevity risk. This predictable, guaranteed income stream essentially creates a personal pension plan that continues regardless of market volatility or interest rate fluctuations.

Think of annuities as the stabilizing force that allows you to pursue more aggressive growth strategies with other portfolio components. When clients know their essential expenses are covered through guaranteed income, they can better tolerate volatility in their growth investments. This psychological comfort often leads to better long-term investment behavior and outcomes.

As Dave Alison, CFP®, EA, BPC, President and Founding Partner of C2P explains on  The Bucket Plan® On Demand podcast: the key insight here is positioning:

“It’s not the vehicle itself—it’s what you do with it that matters.” – Dave Alison

2. Address Women’s Unique Longevity Challenges

Through one of our A Women’s Clarity® forum discussions, we’ve identified specific retirement planning challenges that make annuities particularly valuable for women clients. As Ashley Ilardo from Dimensional Fund Advisors shared, women outlive men by an average of five years, but half of all widows over 65 will outlive their husbands by an additional 15 years. Even more concerning, as Tiya Stanley from F&G pointed out, 70% of nursing home residents are women.

These longevity realities create specific financial pressures that advisors must address. Women experience a longer “health span-lifespan gap”—averaging 13.73 years compared to 11.08 years for men—meaning they typically require long-term care services for extended periods. Additionally, women often face career interruptions for caregiving responsibilities, resulting in lower lifetime earnings and reduced retirement savings.

Modern annuity solutions directly address these challenges through innovative features designed for extended care needs. It varies by state but as Tiya explained, many current F&G products offer immediate access to 100% of accumulation value for terminal illness, home healthcare, or nursing home needs. Advanced income annuities can double payments when clients cannot perform two of six activities of daily living, with some products continuing this enhanced benefit until the cash value reaches zero—not just for a limited five-year period.

For women clients who prioritize aging in place and maintaining financial independence, these features provide crucial protection while preserving dignity and choice in their later years. Rather than depleting assets to pay for care, properly structured annuities can enhance income precisely when care costs peak.

[Related: Best Ways to Discuss Life Insurance Strategies for Women]

3. Adapt to Today’s Economic Environment

The current economic landscape presents unique opportunities for annuity implementation that didn’t exist a decade ago. Interest rate environments, inflation concerns, and market volatility patterns all influence which retirement income tools provide optimal value for your clients.

Today’s environment requires flexibility in your planning approach. The products and strategies that worked effectively in previous decades may not address current economic realities. Smart advisors recognize that every financial vehicle has specific jobs it can accomplish, and the key is matching the right tool to the current economic conditions and individual client needs.

This adaptability becomes particularly important when considering how economic factors affect different demographics. Women’s longer retirement periods mean they’re more exposed to inflation risk over time. Current annuity products with built-in inflation protection or growth potential can help address this extended exposure while maintaining the guaranteed income foundation.

The most successful advisors avoid being anchored to past approaches and instead evaluate how current product innovations can solve today’s specific challenges within a holistic planning framework.

As Kalem Mackey, CFP®, BPC explains on an annuity themed episode of The Bucket Plan® on Demand podcast:

“I know there are some advisors out there that may have been burned by certain products or companies in the past. But there’s just so much innovation in the annuity space. The products that are available today are so much more client-centric than they were 10, 15, 20 years ago.” – Kalem Mackey

[Related: 3 Key Strategies to Help Guide Clients Through Market Volatility]

4. Consider Them as a Bond Replacement

In today’s interest rate environment, lifetime income annuities offer compelling advantages over traditional bond allocations, particularly for clients seeking more liquidity and flexibility in their fixed-income allocation.

Unlike bonds, which can lose value when interest rates rise, lifetime income annuities provide guaranteed payments that continue regardless of market conditions. Many current products allow additional withdrawals without penalty or surrender charges, providing liquidity that bonds may not offer during market stress periods.

The diversification benefits extend beyond simple asset allocation. By transferring longevity and market risks to insurance companies—entities specifically designed to manage these risks—you’re moving beyond the traditional three-asset-class portfolio of cash, bonds, and equities. This risk transfer can be particularly valuable during volatile market periods when rebalancing opportunities arise.

For clients with significant bond allocations, substituting a portion with lifetime income annuities can provide better downside protection while maintaining income generation. This approach offers true diversification by adding an asset class that doesn’t correlate with traditional market movements.

[Related: A Bucketing Approach to Strategic Asset Allocation]

Putting Client Interests First in Annuity Planning

Modern annuity products have evolved significantly, offering more client-centric features and improved transparency that make them viable solutions for challenges that couldn’t be addressed years ago. However, the decision to recommend annuities should always reflect what serves your clients’ best interests rather than how your practice structure or compensation model works. The most successful advisors focus on comprehensive needs analysis and present all options transparently, even when the recommended solution doesn’t optimize advisor compensation. Building a practice around this type of client-first planning philosophy consistently leads to stronger relationships, increased referrals, and better business outcomes.

[Related: How to Provide Exceptional Wealth Management for High-Net-Worth Individuals]

Building a More Comprehensive Advisory Practice

Ready to transform how you approach retirement income planning? The strategies discussed in this article—from guaranteed income foundations to addressing women’s unique needs—all work together within a comprehensive planning framework.

The Bucket Plan® 1.0 Training teaches you to seamlessly integrate annuities and other income solutions into a time-segmented approach that clients appreciate and understand. Instead of overwhelming clients with complex product features, you’ll learn to position guaranteed income within the Now, Soon, and Later bucket structure that addresses sequence of returns risk while creating genuine client confidence.

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The information provided is for informational and training purposes only. The information was accurate as of the time the material was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.

Life insurance planning for women represents one of the largest untapped opportunities for financial advisors today, yet many struggle to effectively serve this growing market.

The opportunity is clear: women hold only 46% of life insurance policies compared to 57% held by men, despite the fact that women typically outlive men, earn less over their lifetimes, and are more likely to need long-term care.

For advisors committed to holistic planning, this coverage gap represents both a responsibility and an opportunity to better serve this growing demographic, especially high-net-worth women and female business owners.

Understanding how to communicate with these clients can transform your practice while providing essential protection for an underserved market.

[Related: Five Impactful Life Insurance Strategies and Insights for Financial Advisors]

Steering the Conversation

Top-performing advisors have developed effective ways to frame these conversations with female clients. Here are some approaches to consider for:

Retirement Income Planning

Many female clients express concerns about maintaining their lifestyle throughout retirement, particularly given longer life expectancies. Starting a conversation about supplemental retirement income through life insurance often resonates strongly with these concerns. For example:

“You know, many of my clients worry about having enough income throughout retirement, especially since we’re all living longer these days. Have you thought about how we might add another source of retirement income that isn’t tied to the market?”

This approach naturally leads to discussing how certain life insurance policies can:

• Provide an additional stream of income in retirement
• Offer tax advantages that other retirement accounts don’t
• Give clients flexibility to access funds if needed

[Related: Simplify the Way You Talk to Clients]

Health and Long-Term Care

Healthcare costs represent one of the biggest threats to women’s retirement security. Women outlive men by an average of five to six years and are twice as likely to need long-term care. With annual nursing home expenses exceeding $100,000, traditional retirement planning for females often falls short without proper protection strategies in place.

Opening a discussion about combining life insurance with long-term care protection can address this crucial planning need while providing additional benefits:

“One thing I’ve learned from working with clients is that healthcare costs can really impact retirement savings. In fact, I just helped a client whose mother needed nursing care, and it quickly drained her savings. Would you be interested in learning about a solution that could help protect your retirement savings while also providing life insurance benefits?”

This opens the door to discuss:

• How newer policies combine life insurance with long-term care protection
• Why it’s smart to look at these options while healthy
• How this protection helps preserve savings for intended purposes

Tax-Efficient Legacy Planning

Women often serve as the cornerstone of family financial planning, making them particularly receptive to discussions about estate planning with life insurance. Starting with tax efficiency can lead to broader conversations about legacy planning:

“Most of my clients want to make sure their hard-earned money goes to their family rather than taxes. I recently worked with someone in a similar situation, and we found a way to pass on their wealth more efficiently using life insurance. Would you like to hear how that might work for you?”

This framing leads naturally into discussing:

• Ways to transfer wealth efficiently to the next generation
• How life insurance proceeds can help cover estate taxes
• Strategies for creating an immediate legacy
• Methods to ensure fair distribution among beneficiaries
• Options for charitable giving through life insurance

[Related: Preparing for The Great Wealth Transfer: How Advisors Can Better Serve Female Clients]
 

Case Study: Long-term Care and Life Insurance for Women

Consider this scenario from a successful advisor’s practice: A 66-year-old woman had confidently entered retirement, assuming her life insurance policy would provide lifelong protection.

During a routine review, the advisor discovered her policy was set to expire in just five years. Fortunately, while still in good health, she was able to apply for a permanent policy with long-term care benefits that aligned with her estate planning goals.

Position Yourself as a Support and Resource

After discussing with your client or prospect their needs, make sure you explore policy features that align with those needs and their overall goals.

Make sure you take the time to create educational moments in every meeting, for example, sharing relevant statistics about women’s longevity, explaining how coverage fits their holistic plan and supplement retirement income, and discussing the connection between protection and legacy planning.

You want women to easily recognize your expertise is equal to your compassionate service. Some ways to go above and beyond for them is to offer to review policies held through other advisors or employers and document action items and next steps clearly so they know you are a trusted guide who won’t lose sight of their priorities.

[Related: Financial Planning Simplified: Designing Your Client’s Bucket Plan]
 

Enhance Your Practice with C2P: How Advisors Can Leverage Life Insurance to Support Women’s Financial Goals

At C2P, we understand that serving female clients effectively requires both expertise and the right resources. Our comprehensive support helps advisors:

• Deepen their understanding of women’s unique financial challenges
• Access educational content for client conversations
• Stay current with evolving planning strategies
• Build confidence in protection planning discussions

The opportunity to better serve women through comprehensive life insurance planning has never been greater. Advisors who adapt their approach now will be best positioned to grow their practices and serve this valuable market.

Want to better serve female clients and scale your practice? Book a free strategy call today to learn powerful techniques that leading advisors use!

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For Financial Professional Use Only

The information provided in this presentation is not intended as investment advice or legal advice. The information provided is for informational and training purposes only. The information in this presentation was accurate as of the time the material was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.

However, with 80% of women outliving their spouses who have historically handled their finances, they also need your guidance more than ever before.

It’s time to start thinking about how you can better serve this crucial and rapidly growing client base.

Why Your Approach Needs to Change

With 65% of women finding a new financial advisor after their spouse dies, it’s clear that something important is being missed in how advisors work with couples. Even more concerning, only 20% of women have a written financial plan for retirement – a crucial tool for long-term financial success.39

Consider how you interact with couples during the planning process. Too often, attention gets directed primarily to the husband during meetings. It’s not intentional, but it happens – and it can cost you valuable relationships.

The fix isn’t complicated — prioritize their inclusion to help them feel seen and heard. It’s not about dumbing things down — it’s about making the conversation relevant to what matters most to them. While returns and technical analysis are exciting, most women are more interested in understanding how their finances support their life goals and protect their families.

Understanding What Makes Women’s Financial Journey Different

Women’s financial lives often look very different from their male counterparts. The challenges are significant, as highlighted in a new Nationwide Retirement Institute report.

• 39% of working women report that caregiving responsibilities have interrupted their careers, affecting their ability to save for retirement
• Women typically live longer than men, yet their median retirement savings are just $44,000 (rising to $98,000 among Boomers)
• Only 16% of women workers feel “very confident” about achieving a comfortable retirement
• Their top financial concerns include:
  • Outliving savings and investments (44%)
  • Social Security cuts (43%)
  • Long-term care needs due to declining health (41%)
  • Meeting basic family financial needs (39%)
  • Cognitive decline and related healthcare costs (37%)

Financial planning for women requires a different approach, especially when it comes to healthcare costs and creating income that truly lasts. Understanding these challenges means offering guidance that fits their lives, not just cookie-cutter advice that often misses the mark.

Taking a Holistic Approach

The fact that one-third of women have taken loans or early withdrawals from their retirement accounts further emphasizes the importance of comprehensive financial planning and education.

Traditional investment-only conversations miss crucial nuances that matter deeply to female clients — like protection planning, legacy goals, and long-term care considerations. This is where holistic financial planning becomes essential.

The Bucket Plan® strategy particularly resonates with female clients because it addresses their core concerns: having reliable income, maintaining their lifestyle, and protecting their family against life’s uncertainties. By segmenting assets into Now, Soon, and Later buckets, advisors can help women visualize how their money will work for them through different life stages while protecting against market volatility and longevity risk.

Building Relationships That Last

The key to serving female clients well is taking the time to build real relationships. That means creating an environment where they feel comfortable asking questions and learning. This becomes especially important during major life changes, such as divorce, losing a spouse, retirement, career shifts — times when clients need an advisor who can provide both solid financial guidance and a steady hand.

This approach should be a given as it helps create solid outcomes for all your clients, not just women. These relationship skills lead to stronger connections and better results across the board.

Strategies to Financially Empower Divorcees and Widows

Making It Happen in Your Advisory Practice

So how does this work in practice? It starts with taking a fresh look at communication and planning methods, involving both spouses in conversations, and developing support for life’s big transitions. These aren’t massive changes, but they can make a huge difference in keeping a widow as a client.

Further, implementing a proven process like The Bucket Plan® provides structure to these conversations while ensuring all aspects of a client’s financial life are addressed. This systematic approach helps create clarity and confidence – especially valuable when working with female clients who may be taking a more active role in their finances for the first time.

Moving Forward

With women controlling more wealth and on pace to continue this trend while making more financial decisions than ever before, the time to adapt is now.

C2P has the tools and support to help make this transition smooth or your current efforts even more successful.

Ready to enhance your approach to serving female clients? Learn how our training and tools, resources, and support programs can help you create more meaningful client relationships.

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This blog post is based on insights from A Woman’s Clarity® podcast series which aims to provide tips and insights that help men and women advisors better serve their female clients.

To continue learning about serving female clients and more methods and strategies to enhance your practice, subscribe to C2P’s industry-leading podcasts: The Bucket Plan®, The Rainmaker Multiplier, or A Woman’s Clarity®.

For Financial Professional Use Only

The information provided in this presentation is not intended as investment advice or legal advice. The information provided is for informational and training purposes only. The information in this presentation was accurate as of the time the material was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.