LIMRA’s U.S. Individual Annuity Sales Survey reported that annuity sales in the country jumped 5% to a whopping $121.2 billion in the third quarter of 2025, a new record.
In addition, year-to-date annuity sales reached $347 billion, up 4% year-over-year, according to LIMRA.
Keith Golembiewski, assistant vice president and head of LIMRA Annuity Research, attributed this record to several factors. Favorable economic conditions in 2025 (a strong but volatile equity market and higher interest rates), coupled with new PE-backed entrants into the annuity market and/or expanded product suites, and an aging population that needs investment protection and guaranteed growth, have created an attractive environment for the annuity market.
Yet, some factors could hinder sales in 2026, including the Federal Reserve’s interest rate cuts.
“Interest rates impact the attractiveness and demand, particularly for fixed annuity products. We expect, as the Fed lowers rates, the sales growth of FRD and income products will level off or dampen a bit,” he said.
Key Forces Behind the Surge in Annuity Sales
Golembiewski noted, however, that the need for protected lifetime income will only grow as more Americans approach or enter retirement without a pension.
“These products will still offer an attractive solution for conservative investors. We expect indexed product sales—RILAs (registered index-linked annuities) and FIAs (fixed-income annuities)—to continue to grow in the coming years. Overall, LIMRA is projecting annuity sales to remain above $450 billion in 2026,” he added.
Liza Tyler, head of annuity solutions at Transamerica and Chair of LIMRA Annuity Advisory Board, also noted that another driver of this surge is that we’re in the middle of a historic ‘Peak 65’ wave, with millions of Americans hitting retirement age each year.
“People are exhausted by volatility, inflation headlines, and questions about Social Security, so guaranteed income feels less like an optional add-on and more like a necessity,” she said.
Finally, she underscored that carriers have modernized annuities—cleaner designs, better liquidity, and more transparent fees — so advisors can use them as disciplined income tools rather than complex, one-off products.
This factor was also underscored in the LIMRA survey, which found that product design improvements also helped boost sales.
As Jason Bickler, co-head of Individual Markets, Global Atlantic, noted, now, whether someone wants guaranteed rates with no market risk or the ability to capture some market upside with built-in downside protection, there are more options in between than ever before.“This added flexibility makes it easier for financial professionals to match products to individual needs, which is helping drive sales,” Bickler said.
What’s Driving Growth Across Annuity Types?
As annuity demand continues to rise, each type is responding differently to market conditions, investor sentiment, and evolving retirement needs. The following breakdown highlights how key annuity types are performing and what’s fueling their momentum, or slowing their growth, in today’s environment.
Registered Index-Linked Annuity (RILA)
RILAs set a new quarterly sales record, with sales totaling $20.7 billion, “20% higher than the prior year,” according to LIMRA.
“New to the market, RILAs offer broader upside investment growth potential with limited downside risk. As more Americans are expected to build and manage their retirement assets to fund their retirement, these solutions are very attractive,” Golembiewski said.
Variable Annuities
Variable annuities increased 13% in the third quarter to $17 billion.
“In addition to the preferential tax treatment, VAs have benefited from multiple years of double-digit equity market growth. These products allow consumers to benefit from market gains with the option to create future lifetime income in retirement,” he said.
Deferred Annuities
For deferred annuities, sales were $42.9 billion in the third quarter, “6% higher than third quarter 2024 sales.”
Fixed Indexed Annuities
Fixed indexed annuity sales decreased 6% year-over-year to $33.2 billion in the third quarter.
“Fixed index annuities still can offer among the strongest opportunities for guaranteed income growth and payouts in the marketplace,” said Willie Jones, Managing Director of Member Success, DPL Financial Partners.
Income Annuities
Income annuity sales increased 12% in the third quarter to $3.9 billion. YTD, SPIA sales remained level with sales recorded in the first three quarters of 2024.
According to Tyler, income annuities, both immediate and deferred, “are the purest answer to longevity risk.”
“Their sales are more rate-sensitive, so you’ll see some ebb and flow as payouts move with interest rates, and recent LIMRA data shows some softness in the first quarter. But as more Americans reach their mid-60s with meaningful balances and no pension, there’s growing interest in carving out a portion of assets to cover non-negotiable expenses for life,” she said.
Why Many Boomers and Gen X Investors Still Lack Annuity Protection
Interestingly, while nine in 10 investors recognize annuities can mitigate this risk, only one in five pre-retirees and retirees own an annuity, LIMRA found.
LIMRA’s Golembiewski attributes this discrepancy to awareness, both among advisors and investors, as the annuity landscape has changed significantly in the past decade.
He said that on the advisor side, LIMRA’s research shows that past experience with a complex product-selling process has discouraged them from discussing these products with their clients.
As for Gen Xers and Baby Boomers, they spent their prime earning years focused on juggling college costs for their children, caring for aging parents, and managing through ongoing economic volatility, said Rona Guymon, SVP, annuity distribution for Nationwide Annuities.
“These factors caused many of them to put retirement planning on the backburner, which now has them concerned their savings won’t last in retirement,” she said.
Complicating matters, Guymon said this cohort is concerned about inflation and Social Security cuts.
“However, that doesn’t mean there isn’t still time to get back on track and protect your retirement income. These investors should connect with a financial advisor now to help pinpoint the right solutions for their needs – including talking about annuities,” she said.
See How Much You Could Earn With Today’s Best Rates
Why Annuities Deserve a Closer Look in 2026
Transamerica’s Tyler said for many Americans, 2026 is shaping up as a tipping-point year, as a record number of people will be in their early- and mid-60s, looking at meaningful account balances and asking a simple question: ‘How do I turn this pile of savings into a paycheck I can’t outlive?’
“Annuities are one of the few tools designed specifically to answer that question. They can transform a portion of your retirement assets into a contractual lifetime income stream, which neither the stock market nor a traditional bond ladder can guarantee,” she said.
She argued, however, that it doesn’t mean everyone should annuitize everything; annuities are not a silver bullet or a relic—they’re a tool.
“The story isn’t ‘annuities versus ETFs’ or ‘annuities versus real estate.’ It’s how you combine guaranteed income with growth assets, emergency savings, and Social Security to create a plan that can weather both market storms and long life,” she said.
The practical takeaway is simple, she said: ask your advisor two questions.
First, ‘What would it take for me to run out of money in retirement?’ And second, ‘What role could guaranteed income—whether from annuities or other sources—play in reducing that risk?’ If those questions aren’t part of the conversation, you’re not getting a complete retirement plan, she added.
How Advisors Can Help Americans Build Sustainable Lifetime Income
Nationwide’s Guymon echoed the sentiment, saying that being clear with your advisor about your personal goals and objectives and how they fit into your broader retirement plan is key.
She said that, for example, some people are looking for solutions that will provide income between their retirement date and collecting Social Security. Some investors are looking for products that will help ensure they have money in retirement if they live into their late 80s or 90s. Some are seeking protection from market volatility, while others are concerned about tax liabilities.
“If you start with the objective you are looking to solve, an advisor can help you with the right annuity solution,” she added.
