Annuity sales notch fourth straight yearly record amid demand for protection

Love them or hate them, annuity products are continuing to attract dollars from investors and retirees seeking security, according to the latest industry read.

Total annuity sales in the US climbed to another all-time high in 2025, as investors kept pouring money into products that blend growth with downside protection and guaranteed income, according to new estimates from LIMRA.

Preliminary results from its US Individual Annuity Sales Survey, which covers about 92% of the total U.S. annuity market, show overall retail annuity sales rose 6% to $461.3 billion in 2025. Fourth-quarter sales reached $114.4 billion, up 12% from the same period a year earlier and marking the ninth straight quarter with more than $100 billion in new annuity business.

Indexed products continued to reshape the landscape. Combined registered index-linked annuity and fixed indexed annuity sales accounted for 45% of total annuity volume last year, up from 24% a decade ago.

“Indexed products – registered index-linked and fixed indexed annuities – represented 45% of total sales in 2025, up from just 24% market share a decade ago,” Bryan Hodgens, senior vice president and head of LIMRA research, said in a statement on Tuesday.

He pointed to “expanded capacity, enhanced products, growing distribution and investor demand” as key drivers, with LIMRA expecting RILA and FIA sales to keep gaining traction through 2028.

RILAs were the fastest-growing segment across all categories tracked . RILA sales rose 20% in 2025 to $79.6 billion, with fourth-quarter sales jumping 24% year over year to $22.2 billion. 

“LIMRA expects the RILA market will continue to expand as more carriers enter the space or introduce new products,” said Keith Golembiewski, assistant vice president and head of LIMRA annuity research. “LIMRA is projecting RILA sales to exceed $85 billion in 2026, and for this market to grow through 2028.”

Fixed indexed annuities also set a new annual record. FIA sales in the fourth quarter increased 8% to $34.4 billion, bringing full-year volume to $128.2 billion, 1% higher than in 2024 and the fifth straight year of growth.

Traditional variable annuity sales improved as markets steadied, rising 7% to $65.2 billion for the year. Fourth-quarter VA sales were $18 billion, 8% higher than the same quarter in 2024.

Fixed-rate deferred annuities remained the largest single category at $160.6 billion in 2025, up 5% year over year, even as the backdrop for interest rates began to shift. Fourth-quarter FRD sales fell from elevated third-quarter levels as investors who rushed to lock in yields ahead of expected rate cuts stepped back, but still ended the year 12% higher than fourth-quarter 2024 at $32.8 billion.

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Income-focused products were more mixed. Single-premium immediate annuities posted 3% growth for the year to $14 billion, with fourth-quarter sales up 12% to $3.5 billion. Deferred income annuity sales slipped 3% to $4.8 billion for 2025 despite a 20% jump in the fourth quarter to $1.4 billion.

Hodgens framed the results against a wave of Peak 65 Americans, with more than 4 million Americans reaching retirement age each year and many lacking traditional pensions.

Previous research by the Alliance for Lifetime Income, which was integrated into the LIMRA brand in September, found 51% of Americans between 61 and 65 years old had less than $100,000 in assets, making it all but certain that they'll outlive their savings in retirement.

"Our research suggests the demand for solutions that offer security – and peace of mind – has never been greater," Hodgens said.