What's Happening?
According to LIMRA's U.S. Individual Annuity Sales Survey, total U.S. annuity sales increased by 6% to $461.3 billion in 2025. The fourth quarter alone saw a 12% rise, reaching $114.4 billion, marking the ninth consecutive quarter of sales exceeding $100 billion. Indexed products, including registered index-linked and fixed indexed annuities, accounted for 45% of total sales, a significant increase from a decade ago. Fixed indexed annuity sales grew by 8% year-over-year to $34.4 billion, while registered index-linked annuity sales set new records with a 24% increase in the fourth quarter, totaling $79.6 billion for the year. Traditional variable annuity sales also rose by 8% in the fourth quarter, reaching $18 billion. LIMRA forecasts continued
growth in the annuity market, particularly for registered index-linked annuities, which are expected to exceed $85 billion in sales in 2026.
Why It's Important?
The growth in annuity sales reflects a broader trend of increasing demand for investment products that offer security and peace of mind, particularly as more Americans enter retirement. The rise in indexed annuities suggests a shift in investor preference towards products that provide a balance of risk and return. This trend is significant for financial institutions and investors, as it indicates a growing market for annuity products, which could lead to increased competition and innovation in the sector. The expansion of the annuity market also highlights the importance of financial planning and the role of annuities in providing lifetime income security for retirees.
What's Next?
LIMRA projects that the market for registered index-linked annuities will continue to grow, with more carriers entering the space and introducing new products. This expansion is expected to drive further innovation and competition in the annuity market. Financial professionals and consumers are likely to see an increased focus on education and engagement regarding the benefits of annuities as part of a comprehensive retirement plan. The continued growth of the annuity market may also prompt regulatory scrutiny and adjustments to ensure consumer protection and market stability.
