US annuity sales set new records in the second quarter of 2025, reaching $119.5 billion—an 8% increase from last year, according to a recent survey by LIMRA. This growth marks the highest quarterly sales yet, surpassing the previous record from early 2024. Overall, the first half of 2025 saw total annuity sales hit $226.1 billion, which is 4% more than the same period in 2024.
Fixed-rate deferred annuities (FRDs) showed strong performance, with sales climbing 11% to $45.2 billion in the second quarter. Year to date, FRD sales stood at $84.9 billion, slightly up by 1%. Fixed indexed annuities (FIAs) also contributed to the market’s growth, pulling in $32.8 billion in Q2, a 5% increase from the previous year, and $60.6 billion for the first half of 2025.
Registered index-linked annuities (RILAs) led the pack, setting new records with $19.1 billion in sales for the quarter—up 15%—and $36.7 billion in the first six months, showing an 18% jump. The appeal of RILAs lies in their mix of protected growth and attractive financial features, which seems to be drawing more investors and new products.
Traditional variable annuities (VAs) saw a dip, dropping 3% in Q2 to $14.7 billion, likely affected by April’s market swings. However, year-to-date sales for VAs still rose 4% to $30.2 billion. Single premium immediate annuities (SPIAs) grew 6% in the quarter to $3.6 billion, although their first-half sales fell 5% to $6.6 billion. Deferred income annuities (DIAs) bounced back with a 17% increase to $1.5 billion in the quarter, but sales were down 2% for the year so far.
Experts say a few things have helped drive this steady rise. Product innovation, better capitalization by companies, and more awareness about the benefits of guaranteed income in retirement are making annuities more attractive. LIMRA expects total annuity sales to top $400 billion by the end of 2025.
On the industry outlook, AM Best has kept a stable view on US life and annuity insurance. They point to strong financial health, growing sales, and steady profits in the sector. Higher interest rates have particularly boosted sales in fixed index and registered index-linked annuities.
Looking back, 2024 was a milestone year with quarterly annuity sales exceeding $100 billion every quarter, the first time this has happened. Annual sales hit $432.6 billion, a 12% rise compared to 2023, and RILA sales surpassed traditional variable annuities for the first time.
Despite economic challenges like inflation and market ups and downs in recent years, retirees and those planning for retirement are increasingly turning to annuities for financial security. LIMRA’s Alliance for Lifetime Income aims to help people understand how annuities can offer peace of mind as they plan their futures.