U.S. Annuity Sales Surge to $461.3 Billion in 2025

U.S. annuity sales surged to an impressive $461.3 billion in 2025, reflecting a 6% increase and marking the fourth consecutive year of growth. This upward trajectory is primarily driven by the retirement of baby boomers and mounting concerns about outliving financial resources. According to LIMRA, an industry research organization, the fourth quarter recorded sales of $114.4 billion, maintaining a nine-quarter streak of surpassing the $100 billion threshold.

The annuity market has nearly doubled in size over the past five years, fueled largely by the popularity of indexed products such as registered index-linked annuities (RILAs) and fixed indexed annuities. These products now constitute 45% of total sales, a stark rise from 24% a decade ago. Notably, fixed-rate deferred annuities led with $160.6 billion in sales, while fixed indexed annuities reached a record high of $128.2 billion. RILAs achieved $79.6 billion in sales, a 20% increase, and projections suggest they will surpass $85 billion in 2026, LIMRA reports.

LIMRA Senior Vice President Bryan Hodgens attributes this growth to demographic trends, particularly "Peak65," during which over 4 million Americans retire annually, many without guaranteed income sources. The Alliance for Lifetime Income's study indicates that 51% of people aged 61 to 65 have less than $100,000 in assets. Additionally, a LIMRA survey conducted in 2025 revealed that 54% of baby boomers and Gen X investors are concerned about depleting their savings, marking an increase from the previous year.

Interest rate fluctuations have also influenced the market, making fixed annuities more appealing as investments. LIMRA highlighted earlier this year that the crediting rates for these products surpassed CD rates by nearly 200 basis points on average.

Performance of Annuity Providers

Among U.S. annuity providers, Lincoln Financial Group saw a 33% rise in fourth-quarter annuity sales to $4.9 billion, although its net income dipped to $745 million from $1.68 billion. CEO Ellen Cooper attributed this to investments in infrastructure. Similarly, Prudential Financial reported a fourth-quarter net income of $905 million, turning around a loss from the previous year, with annuities being a key contributor. Notably, its FlexGuard RILA suite has achieved $20 billion in cumulative sales since 2020, ranking third in U.S. RILA sales by mid-2025, according to LIMRA.

Corebridge Financial, ranked as the third-largest annuity provider by LIMRA's mid-year rankings, posted a fourth-quarter net income of $814 million. CEO Marc Costantini announced a 4% increase in full-year sales to a record $42 billion, with aspirations for Corebridge to become a top-five RILA provider. Brighthouse Financial, undergoing a $4.1 billion acquisition by Aquarian Capital LLC, reported a fourth-quarter net income of $112 million, down from $646 million the previous year. CNO Financial emphasized a 9% rise in annuity collected premiums, with in-force account values exceeding $13 billion.

Looking forward, LIMRA anticipates a decline in fixed-rate deferred annuity sales below 2025 levels due to expected lower interest rates. Erik Miller, senior director at AM Best, echoed this outlook, suggesting that current growth rates may moderate in the medium term.