Annuity sales hit new high as Americans seek income security amid inflation

Total US annuity sales reached $119.3 billion in the third quarter of 2025, according to new data from LIMRA, marking the eighth straight quarter that sales have surpassed $100 billion.

The latest preliminary read of the annuity space represents a 4% increase from the same period last year and set a new quarterly record. Year-to-date, annuity sales have climbed to $345 billion, the highest nine-month total ever recorded by the industry group.

LIMRA's figures published Wednesday showed that Q3 growth was fueled by strong demand for registered annuity products, including both traditional variable annuities and registered index-linked annuities (RILAs).

“Registered annuity products ... posted double-digit growth, contributing to the overall growth in quarterly sales,” said Bryan Hodgens, senior vice president and head of LIMRA research.

He added that the equity market’s performance has attracted investors seeking to counter persistent inflation, even as market volatility continues.

RILA sales, in particular, set a new milestone, surpassing $20 billion in a single quarter for the first time. Third-quarter RILA sales were up 20% year over year, and sales for the first three quarters rose 18% to $57.3 billion.

LIMRA noted that three new RILA products were introduced this quarter, with additional carriers entering the market and others enhancing their offerings.

Keith Golembiewski, assistant vice president and director of LIMRA annuity research, said the environment of moderated volatility and strong equity returns has been “a perfect environment for RILAs, which offer protected growth with attractive caps and participation rates aligned with equity market returns.” 

Traditional variable annuity sales also rebounded, reaching $16.7 billion in the third quarter, up 11% from a year earlier. Fixed-rate deferred annuities saw a 3% increase to $41.7 billion, while fixed indexed annuities declined 6% to $33.2 billion.

Income annuities showed mixed results: single premium immediate annuity sales rose 6% to $3.7 billion, but deferred income annuity sales fell 5% to $1.3 billion.

LIMRA’s research highlights ongoing concerns among consumers about outliving their retirement savings, particularly among Generation X. Recent survey research from the Alliance for Lifetime Income found nearly six in ten Gen Xers are not confident their savings and income will last.

Read more: Gen x faces mounting retirement anxiety as savings struggle against inflation, says Allianz

Hodgens noted that “while recent favorable economic conditions have helped to double annuity sales over the past five years, LIMRA believes consumers’ greater understanding of the value of guaranteed income will keep demand relatively steady, regardless of shifting economic conditions.”

The surge in annuity sales comes as Americans face persistent inflation and questions about the adequacy of Social Security. Last week, the Social Security Administration announced a 2.8% cost-of-living adjustment for 2026, the fifth consecutive year with an increase of at least 2.5%.

However, research from AARP this month indicates that only 22% of Americans age 50 and older believe a 3% COLA is sufficient to keep up with rising prices, with nearly three-quarters saying a 5% or higher increase would be necessary.

"This sentiment is consistent across political party affiliations, with large majorities of Republicans (75%), Independents (82%) and Democrats (79%) expressing disagreement," AARP said.