U.S. Annuity Sales Hit Record $121B in Q3 2025, Fueling Growth Opportunity

Annuity sales in the U.S. hit a record $121.2 billion in the third quarter of 2025, marking a 5% increase from the previous quarter and contributing to a year-to-date total of $347 billion, which is a 4% rise from the prior year. LIMRA's U.S. Individual Annuity Sales Survey covering 92% of the market projects total annual sales will reach $450 billion in 2025 and sustain at that level through 2028. This marks a significant growth trajectory, nearly doubling total sales compared to 2020. Nationwide's recent survey highlighted a notable shift among Generation X investors, with 51% indicating a greater likelihood to allocate part of their portfolios to annuities or other guaranteed income products following events in the past year. Despite this interest, current adoption remains low at 5%, suggesting considerable market potential. Additionally, financial advisers report increased promotion of annuities to Generation X clients relative to Baby Boomers. The data further reveals that annuity ownership positively correlates with confidence in retirement timelines, with 76% of owners aged 45-75 expressing such confidence versus 49% of nonowners. These trends underscore the expanding role of annuities in retirement planning and income security within the U.S. insurance and financial advisory landscape.