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What Will It Take to Double Annuity Sales by 2030?
9/24/2025
By Bryan Hodgens, Senior Vice President and Head of LIMRA Research
At this year’s LIMRA Annual Conference, I had the pleasure of sitting down with Jason Fichtner, executive director of the Retirement Income Institute at the Alliance for Lifetime Income by LIMRA. With a distinguished career in retirement policy and economics — including senior roles at the Social Security Administration — Jason brought a wealth of insight to our discussion about the future of annuities.
Reflecting on the Last Five Years
Annuity sales have seen remarkable growth, nearly doubling from $219 billion in 2020 to $434 billion in 2024. What fueled this surge?
- Rising Interest Rates: The 10-year Treasury yield climbed from under 1% in 2020 to an average of 4.2% in 2024, boosting fixed-rate deferred annuity sales by over 250%.
- Market Volatility: Despite an 80% rise in the S&P 500, volatility drove investors toward protection and guarantees, benefiting annuity products like registered income-linked annuities and fixed indexed annuities.
- Capital Influx: Private equity investment has grown, with 25% of insurance carriers now backed by PE firms, enabling greater capacity for annuity business.
- Consumer Demand: The shifting retirement landscape and concerns about Social Security have increased interest in guaranteed income solutions.
The Retirement Income Challenge
There is no doubt that there is a growing retirement income challenge facing millions of Americans. Key factors include:
- Decline of Private Pensions: Only 4% of private sector workers rely solely on defined benefit plans.
- Longevity Risk: As more Americans live longer, there is an increasing need for sustainable income.
- Social Security Uncertainty: With the trust fund projected to be depleted by 2033, many are reconsidering when to claim benefits and how to supplement them.
The “Peak 65” Moment
From 2024 to 2027, over 11,000 Americans turn 65 every day, marking the peak of the boomer retirement wave. By the end of the decade, there will be more people over 65 than under 18, a demographic shift with profound fiscal and financial implications.
Bryan Hodgens and Jason Fichtner discuss the financial implications of Peak65.
Changing the Narrative Around Annuities
Jason shared how reframing the conversation—from “annuities” to “protected income”—has helped shift public perception. Consumers may not love the word “annuity,” but they value guaranteed income and financial protection.
Even younger investors are paying attention. LIMRA research shows that:
- Nearly 60% of emerging affluent investors (ages 25–45) are familiar with annuities.
- 7 in 10 would consider converting savings into lifetime income.
Advisors Are Listening
Consumer interest is influencing advisors:
- Forty percent of advisors report that client inquiries about annuities have grown.
- Two-thirds are adjusting their recommendations to address concerns about inflation, market volatility, and retirement security.
Technology is also helping streamline the annuity sales process, with fintech tools improving income planning and reducing paperwork friction.
Looking Ahead: Workplace Integration & Framing
The future of annuities may lie in defined contribution plans. As employers begin offering annuity options in target-date funds, employees will gain easier access to protected income—potentially transforming the market.
Jason suggests reframing annuities as part of a “protection asset class”, alongside equities and bonds. He also advocates for shifting from “decumulation” to “income planning”, helping consumers visualize a spending strategy that aligns with their retirement goals.
Final Thoughts
The path to doubling annuity sales by 2030 is clear:
- Economic conditions and demographic shifts are creating demand.
- Consumer awareness is growing.
- Advisor engagement is evolving.
- Technology and workplace integration are removing barriers.
As Jason put it, “Annuities aren’t just sold—they’re starting to be bought.” And that shift in mindset may be the key to unlocking the next wave of growth.
To watch the full conversation, please visit: Industry Insights with Bryan Hodgens: What Will It Take to Double Annuity Sales Over the Next 5 Years?
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About LIMRA
Serving the industry since 1916, LIMRA offers industry knowledge, insights, connections, and solutions to help more than 700 member organizations navigate change with confidence. Visit LIMRA at www.limra.com.
About the Alliance for Lifetime Income By LIMRA
The Alliance for Lifetime Income by LIMRA is the consumer and advisor educational arm of LIMRA. Its mission is to raise awareness pf and educate Americans about the value and importance of having protected income in retirement. The Alliance provides consumers and financial professionals with unique educational resources and interactive tools that help build retirement income strategies. Visit the Alliance at www.protectedincome.org