U.S. Annuity Sales Hit Record $121 Billion in Q3 2025 Driven by RILAs and Variable Products

Annuity Momentum Surges Into 2025: What Insurance Professionals Need to Know

“Eight straight quarters above $100 billion tells us one thing: annuities are no longer a niche retirement product—they’re a mainstream solution in a market craving stability.”

U.S. retail annuity sales have once again rewritten the record books. The third quarter of 2025 closed with $121.2 billion in sales—a 5% year-over-year gain and yet another milestone in an unprecedented run of quarterly results. Year-to-date sales reached $347 billion, up 4% from 2024, cementing annuities as one of the strongest-performing product categories in the financial services landscape.

The engine behind this continued expansion? A potent mix of product innovation, refreshed designs tailored to investor preferences, and a distribution ecosystem increasingly powered by independent broker-dealers.

RILAs Take Center Stage: The Industry’s Fastest-Growing Segment

If 2024 was the year RILAs broke through, 2025 is the year they dominate.

Registered index-linked annuities posted 20% year-over-year growth in Q3, hitting $20.7 billion, and are up 19% year-to-date at $57.4 billion. LIMRA now projects that RILA sales will exceed $75 billion for the full year, a remarkable indicator of shifting consumer sentiment.

Top RILA Carriers (Q3 2025)

What’s fueling the surge? Advisors say clients want “a middle lane”—products offering upside potential with structured risk, especially amid uncertain markets. RILAs continue to answer that call.

Traditional VAs and the Quiet Comeback Story

While RILAs attract much of the media spotlight, traditional variable annuities remain a powerful contributor to overall sales. Jackson National Life once again led the VA category in Q3, thanks to an adviser base comfortable pairing VAs with guaranteed income riders to meet evolving retirement income narratives.

Fixed-Rate Deferred Annuities Hold Their Ground

Fixed-rate deferred (FRD) annuities delivered another quarter of stability, rising 6% year-over-year to $42.9 billion. Year-to-date totals reached $127.8 billion, a 3% lift from 2024.

These products continue to thrive with conservative investors who value principal protection with competitive crediting rates, especially in a climate where market volatility remains a lingering concern.

Leading FRD Providers in Q3

• New York Life

• Athene Annuity & Life

• Massachusetts Mutual Life

Their success reflects a broader consumer shift toward guaranteed accumulation during uncertain economic cycles.

Indexed Annuities Dip, While Income Annuities Diverge

Fixed indexed annuities (FIAs) recorded a modest decline—down 6% in Q3 and 1% year-to-date. Industry analysts point to competition from RILAs and softening rate environments as contributing factors. Still, FIAs remain a foundational product for many advisors, and carrier innovation could help reignite momentum.

Meanwhile:

• Single-premium immediate annuities (SPIAs) climbed 12% to $3.9 billion.

• Deferred income annuities (DIAs) decreased both quarterly and year-to-date.

The mixed results underscore the evolving preferences of investors who want income but are increasingly selective about how and when they lock it in.

Distribution Dynamics: The Rise of Independent Broker-Dealers

One of the more transformative shifts in the annuity ecosystem is the continued ascendance of independent broker-dealers, who now account for more than half of all registered annuity product sales.

This matters because IBD advisors are:

• More product-agnostic

• More comfortable pairing protection products with investment strategies

• More responsive to client demand for personalized retirement income planning

Their influence is accelerating adoption of both RILAs and redesigned VAs, and carriers are racing to meet their expectations with streamlined processes, digital tools, and competitive product suites.

“The Retirement Income Gap Is Growing Faster Than Awareness”

Despite unprecedented sales volume and heightened consumer concern about retirement preparedness, annuity ownership remains below 20% across Baby Boomers and Gen X.

This gap presents both a challenge and tremendous opportunity.

As one industry strategist noted:
“Investors aren’t rejecting annuities—most have simply never had a meaningful conversation about guaranteed lifetime income.”

This reality underscores the critical role advisors and insurers must play in education, planning, and communication.

A Look Ahead: 2026 Rate Cuts and the Road to $450 Billion

LIMRA forecasts that total annuity sales will surpass $450 billion in 2025—a historic high. However, the outlook for 2026 introduces a new wrinkle: expected Federal Reserve rate cuts could slow the fixed annuity boom.

Still, analysts believe the broader annuity resurgence is durable. Investors are prioritizing stability and income. Advisors are increasingly trained to integrate annuities into holistic planning. Carriers are innovating faster than ever.

The momentum may shift from product-driven spikes to sustained, long-term adoption.

The Bottom Line for Insurance Professionals

The story of 2025 is clear: annuities have become central to modern retirement planning. Whether through structured growth options like RILAs, guaranteed accumulation via FRDs, or income solutions spanning VAs and SPIAs, the industry is meeting a deep and growing consumer need.

For carriers and advisors alike, the path forward is about bridging the awareness gap, elevating product education, and continuing to innovate in ways that resonate with risk-sensitive, income-focused investors.

Record sales are impressive—but the bigger opportunity lies in helping more Americans secure the lifetime income they need and deserve.