US insurance carriers are keen to hail the benefits of annuities in retirement planning and are using several key strategies to do so.
A new report from Goldman Sachs Asset Management shows that insurers are seizing the opportunity of economic uncertainty to accelerate their retirement income solutions and platform innovations to meet future investor demand and address current market risks.
The RIA channel is emerging as the primary driver of growth with 45% of respondents expecting the most significant development to come from RIAs, compared to 38% who see the Independent channel as the next major growth area.
This represents a shift from last year, when independent firms were in the lead and RIAs lagged behind. The change also highlights a broader industry trend toward catering to high-net-worth clients and addressing the increasing demand for annuity expertise within fee-based wealth management models.
The firm’s fifth annual annuities report finds carriers are sharpening their focus on in-plan solutions, product menus, and AI-enabled education.
“Our latest survey makes it clear that insurers are not standing still,” said Marci Green, Head of Retirement Distribution and Third-Party Insurance, Americas at Goldman Sachs Asset Management. “They are reassessing annuity platforms to reflect real concerns around market volatility, longevity, and investor engagement. It is not about offering more products. It is about offering the right ones.”
Green said that there is a meaningful shift as insurers prepare for a new era focused on delivering more sophisticated, flexible product solutions, streamlining sales efficiencies, and providing education tools that meet clients where they are.
The report reveals five key themes:
Concern over a potential US economic slowdown or recession continues to rise, with 76% of insurers now identifying it as the top macro risk—up from 57% last year. In fact, 79% of respondents believe a recession is likely within the next two years.
Equity return expectations remain divided (55% anticipate gains, while 45% expect losses), but consensus is stronger around fixed income. A large majority (78%) expect the Federal Reserve to cut rates in the second half of 2025, and nearly 90% foresee the 10-year Treasury yield ending the year between 3.5% and 4.5%. In response, insurers are rebalancing portfolios: 29% plan to increase allocations to international developed equities, while interest in private markets is growing—particularly private credit (15%) and private equity (10%).
2. Product Strategies Expand as Index Preferences Evolve
Registered index-linked annuities (RILAs) remain central, with 77% of insurers prioritizing them from a product development perspective. At the same time, focus is shifting toward more traditional lifetime income solutions, with 60% citing guaranteed variable annuities as a priority—up from 44% in 2024. Defined outcome strategies are also gaining momentum, with 61% valuing the client flexibility they offer.
While AI-themed indices continue to lead, consistent with prior-year trends, interest in international and global indices has surged—from 21% in 2024 to 37% in 2025. The timing of the survey, conducted around Liberation Day, may point to a broader economic policy shift and growing appetite for geographic diversification.
3. In-Plan Retirement Income Moves into Focus
In-plan annuity solutions are transitioning from future goal to current priority. Today, 64% of insurers rank in-plan income options among their top three business initiatives. Over half already offer such solutions, while an additional third are actively developing new products. Integration into managed accounts (31%) and target-date funds (27%) is increasingly common. Moreover, 53% believe automatic plan defaults will be the key driver for widespread adoption of in-plan retirement income features.
4. AI Seen as Key Driver of Education, Personalization, and Efficiency
AI’s influence across the insurance and retirement landscape is accelerating. This year, 90% of respondents say AI will be instrumental in helping investors understand annuities and guaranteed income. Nearly half (47%) expect AI to boost education and engagement in the variable annuity space, while 25% believe it will enable more personalized financial advice through advanced, AI-driven platforms.
Insurers are already leveraging AI: 51% are using it to increase sales efficiency, 45% for underwriting and risk management, and others for prospecting (13%) or evaluating investment strategies (9%).
5. RIAs Lead Distribution as Advisor Support Becomes Critical
RIAs have emerged as the fastest-growing distribution channel, driven by evolving advisor needs. This year’s respondents emphasized the importance of supporting advisors with timely market intelligence, annuity education, and retirement planning tools. Demand for practice management resources and guidance on investment solutions remains strong, underscoring the strategic role insurers must play in advisor enablement.
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