What's Happening?
Annuity sales in the United States reached a record high of $119.5 billion in the second quarter of 2025, according to LIMRA's U.S. Individual Annuity Sales Survey. This marks an 8% increase year over year and surpasses the previous record set in the first half of 2024. The growth is attributed to favorable economic conditions, product innovation, and increased awareness among investors and advisors about the importance of guaranteed income in retirement planning. New York Life led in total annuity sales, while Equitable topped variable annuity sales and Athene led fixed annuity sales.
Why It's Important?
The record-breaking annuity sales highlight a growing trend among retirees and pre-retirees seeking financial security amid economic uncertainty. Annuities offer a unique value proposition by providing guaranteed income, which is increasingly appealing in volatile markets. The surge in sales reflects a shift in retirement planning strategies, emphasizing the need for stable income sources. This trend could influence financial advisors and investors to prioritize annuities in their portfolios, potentially impacting the broader financial services industry.
What's Next?
LIMRA anticipates that annuity sales will continue to grow, potentially surpassing $400 billion by the end of 2025. The introduction of new products and market entrants, particularly in the registered index-linked annuity (RILA) sector, is expected to sustain this growth trajectory. As more broker dealers incorporate RILAs into their offerings, the annuity market may see further expansion, driven by the appeal of protected growth and attractive participation rates.
