Record Annuity Sales

Annuity sales in the United States set record levels in 2024. This appears to be driven by relatively higher interest rates. 2025 should be another record-breaking year. Interest rates have remained relatively high. But beyond interest rates, several other elements are driving record sales. More people will be turning 65 in 2024 and 2025 than ever. Beginning in 2026, the number turning 65 will begin to decrease. Annuity products have also improved. Many advisors have indicated products are simpler to communicate, more understandable to their clients, and an improved solution for their clients' needs. Other elements driving record sales are also present. 

While fixed annuities are the largest component of this growth, indexed annuity sales are growing slightly faster as minimum guaranteed returns have improved while maintaining upside potential returns.

While LIMRA forecasts steady growth of annuity sales over the next 10 years, we don’t necessarily agree. For example, variable annuity sales have been falling for several years, yet LIMRA is predicting they will rebound. They appear on a downward trend, and we don’t see that changing over the next five years.

We’re building a tool to predict annuity sales. It will break down sales predictions by annuity type, considering market conditions, consumer sentiment, and advisor perspectives and behaviors. The tool will also consider specific products from carriers.

If you are interested in learning more, please let me know. I’m happy to discuss it.