U.S. Annuity Sales Hit Record $119.5B in Q2 2025, Driven by Product Innovation and Market Demand
Annuities Are on Fire: 2025’s Record-Breaking Run
The U.S. annuity market isn’t just strong right now. It’s rewriting the record books.
In the second quarter of 2025, sales hit $119.5 billion, up 8 percent from a year ago. First-half totals climbed to $226.1 billion, the highest ever for that period. And according to LIMRA, the year-end number is expected to smash through $400 billion.
That’s not a blip. That’s a tidal wave.
What’s Behind the Surge
Investors and advisors are embracing annuities in a way we haven’t seen before. A mix of steady interest rates, smarter product design, and a laser focus on guaranteed income has fueled demand. Retirement savers, rattled by market volatility and inflation, are asking one big question: How can I make sure I don’t run out of money?
“Over the last three years, annuities have repeatedly set new sales records. Product innovation, expanded capitalization, and growing awareness have lifted the market.”
— Bryan Hodgens, LIMRA
Who’s Winning and What’s Selling
Here’s how the top categories shook out in Q2 2025:
- Fixed-Rate Deferred Annuities (FRDs): $45.2 billion, up 11 percent
- Fixed Indexed Annuities (FIAs): $32.8 billion, up 5 percent
- Registered Index-Linked Annuities (RILAs): $19.1 billion, up 15 percent, another record
- Traditional Variable Annuities: $14.7 billion, down 3 percent for the quarter but still up year-to-date
- Income Annuities: SPIAs rose 6 percent in Q2 but slipped year-to-date, while DIAs surged 17 percent for the quarter
Last years Annuity Sales:
Spotlight on RILAs
If there’s a breakout star in 2025, it’s RILAs. With $36.7 billion in first-half sales, they’ve jumped 18 percent from last year. Why? Because they offer growth potential with a safety net. For investors who want more than bonds but less risk than stocks, they’ve become the sweet spot.
“RILA’s value proposition, protected growth with attractive caps and participation rates, is very appealing in the current economic environment.”
— Keith Golembiewski, LIMRA
The Bigger Picture
This wave isn’t just about numbers. It’s about demographics. Millions of Americans are hitting retirement age each year, and they’re looking for steady income. It’s about psychology too. After years of inflation headlines and volatile markets, people want peace of mind in their portfolios.
For carriers and advisors, the message is clear: Annuities aren’t just breaking records. They’re rewriting the playbook on retirement planning. Those who innovate, educate, and compete on value will be the ones who ride this wave the furthest.