The annuity market is poised for a landmark year in 2025. With increasing life expectancies, a volatile economy, and more people looking for secure retirement income, annuities have become an essential tool for financial planning. As we step into this new era, the annuity landscape is rapidly evolving, setting new records and reshaping the financial world. In this article, we’ll explore the key statistics and trends that define the annuity industry today, providing insights into its current growth, market dynamics, and the leading players.
Editor’s Choice: Record Annuity Sales and Key Trends
- Annuity sales in the U.S. are projected to exceed $520 billion in 2025, marking a significant increase from previous years.
- Fixed-Indexed Annuities (FIA): FIAs are expected to surpass $120 billion in 2025, continuing their strong growth trajectory.
- Variable Annuities (VA): VA sales are projected to reach $65 billion in 2025, maintaining their upward trend.
- Registered Index-Linked Annuities (RILA): RILA sales are anticipated to be between $62 billion and $66 billion in 2025, reflecting sustained demand.
- Income Annuities: Income annuity sales are forecasted to be between $16 billion and $18 billion in 2025, influenced by interest rates and demographic trends.
- Digital Platforms: Digital platforms are expected to account for nearly 35% of all annuity sales in 2025, underscoring the ongoing digital transformation in the industry.
- Advisor Recommendations: Approximately 68% of financial advisors are projected to recommend annuities to clients in 2025, highlighting their role in retirement planning.
Top-Performing US Annuity Companies
- Athene led the U.S. annuity market in 2025 with $34 billion in total sales, capturing an impressive 16.5% market share.
- Jackson National secured $31 billion in annuity sales in 2025, maintaining its dominance in the variable annuity space.
- New York Life posted $29.8 billion in fixed annuity sales in 2025, marking a strong 19% year-over-year growth.
- Corebridge Financial (formerly AIG Life & Retirement) reported $22.4 billion in RILA sales, accounting for over 32% of its annuity revenue.
- Equitable continued digital leadership with 45% of annuity sales made via digital platforms in 2025.
- Brighthouse Financial reached $20 billion in income annuity sales, fueled by rising demand for guaranteed lifetime income.
- Nationwide recorded $17.2 billion in annuity sales in 2025, led by strong performance in fixed-indexed annuities (FIAs).
Annuity Market Overview
- The U.S. annuity market continues to lead globally, with sales projected to exceed $520 billion in 2025, driven by a surge in retirees and heightened demand for guaranteed income products.
- The “Peak 65” phenomenon, where a record 4.2 million Americans are turning 65 in 2025, is significantly influencing the market.
- Deferred annuities remain the most popular choice, accounting for approximately 60% of all new contracts, offering tax-deferred growth and appealing to long-term retirement planners.
- Fixed-rate deferred annuities (FRD) are projected to contribute over $120 billion in sales for 2025, despite a slight decline from the previous year.
- Inflation protection riders, which adjust income based on inflation rates, continue to gain traction among new contracts, as retirees seek to preserve purchasing power.
- Annuity providers are expanding offerings that incorporate Environmental, Social, and Governance (ESG) factors into their products, reflecting a growing demand for socially responsible investments.
Breakdown of Variable Deferred Annuity Sales
- Structured Annuities accounted for 51.8% of total variable deferred annuity sales, indicating a stronger preference for fixed-structure products in the market.
- Variable Annuities made up the remaining 48.2%, showing continued demand for market-linked growth potential despite fluctuating returns.
Fixed Indexed Annuities Performance
- Sales Growth: Fixed Indexed Annuity (FIA) sales are projected to remain robust in 2025, exceeding $100 billion. This continued strength is driven by investor demand for protection-based solutions and innovative index designs.
- Average Returns: FIAs continue to offer competitive returns, with performance varying based on contract terms and market conditions.
- Market Leadership: Athene remains a leading provider in the FIA market, with over $13 billion in fixed indexed annuity sales, contributing significantly to its total annuity sales of $36 billion.
- Guaranteed Income Riders: Principal protection features continue to be a key selling point, with a high percentage of new FIA contracts including guaranteed income riders.
- Market-Linked Bonuses: Market-linked bonuses, which allow policyholders to capture market gains up to a cap, remain a popular feature in new FIA contracts.
- Contract Size: The average contract size for FIAs has seen growth, reflecting increasing consumer confidence in these products.
- Uncapped Strategies: FIAs with uncapped strategies, offering higher growth potential without limits on returns, continue to be a significant portion of new FIA sales.
Top Reasons for Purchasing a Payout Annuity
- Regular monthly income is the leading reason, cited by 22% of buyers seeking financial stability in retirement.
- Other reasons account for 21%, showing that a range of diverse personal factors also drive annuity purchases.
- Safe investment for retirement motivates 18% of purchasers who prioritize security and predictable returns.
- Recommended by an advisor influences 17% of decisions, reflecting the strong impact of professional financial guidance.
- Guaranteed income for life appeals to 13%, highlighting the value of lifetime financial assurance.
- Annuity provided by an employer is the reason for 7%, indicating that employer-sponsored options still play a role.
Fixed Annuity Sales
- In 2025, fixed annuity sales are projected to decline by 15% due to anticipated lower interest rates. This suggests sales could range between $93.75 billion and $106.25 billion.
- New York Life reported $21.9 billion in total annuity sales. The company continues to be a significant player in the market.
- Multi-Year Guaranteed Annuities (MYGAs) remain a popular choice among investors seeking stability. MYGAs continue to represent a substantial portion of fixed annuity sales.
- As of May 2025, 3-year MYGA rates range from 4.60% to 5.60%, depending on the provider and specific product offerings.
- The demand for tax-deferred growth remains strong in 2025, with a significant majority of fixed annuity buyers opting for deferred contracts to benefit from tax advantages.
- Single Premium Immediate Annuities (SPIAs) experienced a 2% increase in sales, reaching $13.6 billion. However, projections for 2025 indicate a potential decline of up to 10% due to anticipated lower interest rates.
- Fee-based fixed annuities continue to gain traction among financial advisors and investors seeking products without traditional surrender charges.
Annuity Insurance Market Growth Forecast
- The global annuity insurance market is projected to grow from $990.4 billion in 2024 to $1313.46 billion by 2029.
- In 2025, the market is expected to reach $1050.84 billion, showing continued momentum.
- The market will expand at a CAGR of 5.7%, reflecting steady demand for annuity insurance products.
- Growth continues each year through 2026 to 2028, with strong upward trends forecasted across the five-year period.
Registered Index-Linked Annuities Surge
- In 2025, Registered Index-Linked Annuity (RILA) sales are projected to reach between $62 billion and $66 billion. This growth is driven by investors seeking a balance between growth potential and downside protection.
- Equitable continues to lead the RILA market, accounting for approximately 22% of total RILA sales. Equitable’s innovative product offerings and strong distribution channels suggest sustained leadership.
- Protective Life remains a significant player in the RILA space. The company continues to offer customizable RILA products that cater to varying risk appetites.
- As of May 2025, cap rates on RILA contracts vary by product and term. For instance, Allianz’s Index Advantage+ Income offers cap rates up to 10% for a 6-year term.
- Buffer annuities, a type of RILA that provides partial protection against market downturns, continue to be popular. Their appeal lies in offering a middle ground between fixed and variable annuities.
- 5-year RILA contracts remain a popular choice among investors, balancing growth opportunities with downside protection.
- Income riders tied to RILAs are gaining traction, offering policyholders the option for guaranteed lifetime income. The trend indicates growing interest in these features.
Annuity Sales Channels
- Independent agents remained the leading sales channel, accounting for 45% of total annuity sales.
- Bank distribution represented 30% of annuity sales, thanks to strong partnerships between banks and annuity providers.
- Broker-dealers captured 20% of the annuity market, with an increased focus on fee-based products appealing to fiduciaries.
- Direct-to-consumer sales grew by 10%, as more consumers opted to purchase annuities through online platforms.
- Financial advisors played a crucial role, influencing 68% of annuity purchases through personalized retirement planning.
- Digital sales platforms accounted for 35% of total sales, a significant jump from 25%, highlighting the shift toward tech-driven distribution.
- Hybrid advisory models—a combination of online tools and personal advisory services—became more popular, making up 15% of annuity sales.
Income Annuities Statistics
- In 2025, income annuity sales in the U.S. are projected to range between $16 billion and $18 billion, reflecting a potential decline of up to 10%, primarily due to anticipated lower interest rates.
- DIAs experienced significant growth, with sales increasing by 33% to $3.8 billion. This surge was driven by pre-retirees seeking to secure future income streams.
- SPIA sales reached $13.6 billion, marking a 2% increase from the previous year. However, projections for 2025 indicate a potential decline of up to 10% due to anticipated lower interest rates.
- As of 2025, SPIA payout rates vary based on factors such as age, gender, and interest rates. It’s important to note that payout rates are subject to change and will vary depending on individual circumstances.
- Lifetime income riders tied to variable and fixed annuities have been gaining popularity, offering policyholders options for guaranteed lifetime income with features like inflation protection and spousal benefits.
- Longevity annuities, which commence payouts at a later age, continue to appeal to individuals concerned about outliving their assets, contributing to their sustained growth in the market.
- In 2025, the IRS increased the maximum allowable investment in QLACs to $200,000, up from the previous limit of $145,000. This adjustment allows retirees to defer required minimum distributions (RMDs) and secure income later in retirement.
Recent Developments
- In 2025, fixed-rate deferred annuity (FRD) sales experienced a decline due to anticipated lower interest rates. LIMRA projects a decrease of 6% to 15% in fixed annuity sales.
- ESG-linked annuities continue to gain traction as investors increasingly prioritize sustainable and socially responsible investment options.
- Artificial intelligence is transforming the annuity market by enabling personalized plans, optimizing investments, enhancing customer service, detecting fraud, and offering 24/7 AI advisors. The integration of AI tools in annuity sales is a notable trend in 2025.
- Fixed-rate deferred annuity (FRD) sales totaled $39.5 billion in the first quarter of 2025. Despite the decline, FRD annuities remain a significant component of the annuity market.
- Annuity providers are increasingly offering customizable products that allow buyers to tailor their annuities to specific financial goals, providing greater flexibility and personalization in retirement planning.
- The SECURE 2.0 Act, effective in 2025, introduces several changes aimed at expanding retirement savings. Key provisions include higher catch-up contribution limits for individuals aged 60-63 and automatic enrollment requirements for most new 401(k) plans.
- Fee-based annuities continue to gain popularity as regulatory changes promote transparency and lower costs in the advisory market.
Conclusion
The annuity industry is stronger than ever, with record sales, innovative products, and digital advancements shaping its future. From fixed-indexed annuities to registered index-linked annuities, the demand for secure, lifetime income options continues to grow. As consumers look for stability and protection in uncertain economic times, annuities remain a key solution for retirement planning. With rising interest rates, new digital platforms, and a shift toward sustainable investments, the annuity landscape is set to continue its impressive expansion, offering investors a diverse range of options to meet their long-term financial goals.
