Annuity sales totaled $119.3 billion in the third quarter, setting a new quarterly record and marking the eighth consecutive quarter in which sales exceeded $100 billion. That figure represents a 4% increase from the previous quarter, according to preliminary results from LIMRA’s U.S. Individual Annuity Sales Survey.
Year to date, annuity sales have reached $345 billion, up 4% compared with the same period last year — the highest total ever recorded over a nine-month span. LIMRA projects that sales will surpass $450 billion in 2025, despite potential headwinds from anticipated Federal Reserve interest rate cuts.
“Despite continued market volatility, the equity market’s overall performance attracted investors looking to counter persistent inflation,” said Bryan Hodgens, senior vice president and head of LIMRA research. “Although the Federal Reserve’s expected interest rate cuts will likely dampen fixed annuity sales gains, LIMRA is projecting annuity sales to surpass $450 billion in 2025.”
Registered annuity products — including traditional variable annuities and registered index-linked annuities (RILAs) — are driving sales momentum, posting strong double-digit growth in the third quarter and helping fuel the record-setting performance.
RILAs posted a new quarterly record with $20.6 billion in sales, up 20% year over year and more than 10 times higher than a decade ago. For the first three quarters of 2025, RILA sales have climbed 18% to $57.3 billion. With new carriers entering the market, LIMRA expects RILAs to maintain their upward trajectory for the foreseeable future.
Traditional variable annuity sales rebounded from the second quarter, increasing 11% year over year to $16.7 billion in the third quarter. Year to date, sales have risen 6% to nearly $47 billion, according to LIMRA.
Fixed-rate deferred annuities also gained momentum, with quarterly sales rising 4% year over year to $41.7 billion. For the year so far, sales are up 2%, reaching $126.6 billion.
By contrast, fixed indexed annuities (FIAs) fell 6% year over year to $33.2 billion in the third quarter. Year to date, FIA sales are down 1% to $93.8 billion after record-breaking results in 2024.
Single premium immediate annuities (SPIAs) rose 6% in the third quarter to $3.7 billion, though year-to-date sales remain 2% below the same period last year.Deferred income annuity (DIA) sales fell 5% year over year to $1.3 billion in the quarter and are down 11% year to date at $3.4 billion. Despite the decline, DIA sales remain three times higher than five years ago.
Annuities are growing increasingly popular as fewer pre-retirees have guaranteed income plans.
“Consistently, LIMRA research finds a majority of consumers worry about running out of money in retirement,” Hodgens said. “For Generation X — who are less likely than older generations to have a pension — nearly 6 in 10 are concerned about outliving their savings.”
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