Record-Breaking Annuity Sales in the U.S. for 2025
Annuity products in the United States achieved record-breaking sales in 2025, as reported by the Life Insurance Marketing and Research Association (LIMRA). The US Individual Annuity Sales Survey, which covers about 92% of the market, revealed annuity sales reaching $461.3 billion—a 6% increase from the previous year. In the fourth quarter alone, sales soared to $114.4 billion, marking a 12% enhancement from the same period in 2024 and continuing a trend of exceeding $100 billion in new annuity business for nine consecutive quarters.
Indexed Annuities Leading the Market
Indexed annuities are significantly reshaping the industry landscape, with registered index-linked annuities (RILAs) and fixed indexed annuities (FIAs) accounting for 45% of total annuity sales in 2025, up from 24% a decade ago. Bryan Hodgens, LIMRA’s senior vice president and head of research, attributes this surge to expanded capacity, product enhancements, increased distribution, and growing investor demand. LIMRA anticipates continued growth in RILA and FIA sales through 2028.
RILA sales demonstrated exceptional vigor, rising by 20% to $79.6 billion in 2025, with fourth-quarter sales climbing 24% to $22.2 billion. “We expect the RILA market will continue to expand as more carriers enter the space or introduce new products,” stated Keith Golembiewski, assistant vice president and head of annuity research at LIMRA. Expectations are that RILA sales will surpass $85 billion in 2026.
Growth Across Annuity Products
Fixed indexed annuities reached new heights with a 1% annual sales increase to $128.2 billion, marking the fifth successive year of growth. Fourth-quarter sales rose by 8% from the same quarter in 2024 to $34.4 billion. Meanwhile, traditional variable annuities experienced a resurgence as market conditions stabilized, with a 7% annual sales rise to $65.2 billion, and fourth-quarter sales of $18 billion, up 8% from 2024.
Fixed-rate deferred annuities remained the largest category, with sales up 5% to $160.6 billion in 2025. Despite a decrease in fourth-quarter sales compared to the third quarter due to interest rate expectations, sales increased by 12% from fourth-quarter 2024, totaling $32.8 billion. Single-premium immediate annuities saw 3% growth to $14 billion, alongside a 12% fourth-quarter rise to $3.5 billion. However, deferred income annuities declined by 3% to $4.8 billion, despite a 20% fourth-quarter surge.
Shifting Demands in Retirement Solutions
LIMRA highlights a surge in demand driven by many nearing retirement without traditional pensions. Past research from the Alliance for Lifetime Income, now integrated with LIMRA, pointed out that over half of Americans aged 61 to 65 possess less than $100,000 in savings, emphasizing the rising need for financial security solutions. "Our research suggests the demand for solutions that offer security—and peace of mind—has never been greater," stated Hodgens.
In conclusion, the US annuity landscape is flourishing, with various products adapting to evolving market conditions and consumer needs. Industry stakeholders are encouraged to focus on innovation and adapt to meet the growing demand for secure income solutions in retirement, ensuring continued compliance with regulatory requirements and risk management.