US annuity sales hit a new high in 2025, reaching $461.3 billion—a 6% increase from the previous year. This marks the fourth year in a row of record-breaking sales, driven largely by retiring baby boomers and worries about outliving their savings.
According to LIMRA, a group that tracks insurance industry data, fourth-quarter annuity sales jumped 12% to $114.4 billion. This was the ninth quarter in a row with sales topping $100 billion. Over the past five years, the annuity market nearly doubled in size. Indexed annuities—products linked to market indexes—now make up 45% of total sales, up from 24% ten years ago.
Fixed-rate deferred annuities led the way with $160.6 billion in sales. Fixed indexed annuities came in second with a record $128.2 billion. Registered index-linked annuities, known as RILAs, saw sales rise 20% to $79.6 billion. These products have grown about tenfold over the last decade, and LIMRA expects them to surpass $85 billion in 2026.
The strong demand for annuities is tied to demographic trends. More than 4 million Americans are reaching retirement age each year, often without enough guaranteed income streams. A study from the Alliance for Lifetime Income found that over half of Americans aged 61 to 65 have less than $100,000 in savings. Meanwhile, a LIMRA survey showed 54% of baby boomers and Gen Xers worry about outliving their money, up from 48% in 2024.
Rising interest rates also played a role. Fixed annuities became more attractive as their crediting rates outpaced traditional certificates of deposit by nearly 2 percentage points.
Not all insurers experienced the same results. Lincoln Financial Group saw its fourth-quarter annuity sales jump 33% to $4.9 billion, but its net income dropped from $1.68 billion to $745 million. Prudential Financial swung from a fourth-quarter net loss of $57 million to a profit of $905 million, largely thanks to strong annuity sales. Prudential’s FlexGuard RILA product has reached $20 billion in total sales since 2020 and is ranked third in US RILA sales.
Corebridge Financial, the third-largest annuity writer, reported a 4% sales increase to a record $42 billion for the year. The company aims to become a top-five RILA seller. Brighthouse Financial, which is being acquired by a private equity firm, posted a lower net income of $112 million in the fourth quarter, down from $646 million, although its annuity premiums hit a record.
Looking ahead, LIMRA expects sales of fixed-rate deferred annuities to decline from 2025 levels due to falling interest rates reducing their appeal. Industry experts suggest that while annuity sales have grown strongly, that pace may slow in the coming years.
Still, the annuity market remains at historic levels as more retirees seek ways to secure steady income for the future.