Annuity sales in the United States increased 4% to $223.0 billion in the first half of 2025, and in the second quarter of the year, they increased 5% year over year to a quarterly record of $116.6 billion.
That’s according to preliminary numbers from U.S. Individual Annuity Sales Survey by LIMRA, which represents 89% of the total U.S. annuity market.
“For the third consecutive year, quarterly and year-to-date (YTD) annuity sales have set records,” Bryan Hodgens, senior vice president and head of LIMRA research, said in a news release. However, he said a “slight softening” in the market could result in a contraction in the second half of the year.
“Even accounting for the potential dip in sales in the second half of the year, annuity sales will likely surpass $400 billion in 2025,” Hodgens said.
Registered Index-Linked Annuities
Sales of registered index-linked annuities (RILA) hit a quarterly record in the second quarter of 2025, $19.6 billion, a 20% increase year over year. In the first half of 2025, RILA sales were $37.0 billion, a 20% year-over-year increase.
“Elevated market volatility in the first quarter calmed in the second and by the end of June, the markets registered positive growth,” Keith Golembiewski, assistant vice president and director of LIMRA Annuity Research, said in the release. “RILA’s value proposition of protected growth with attractive caps and participation rates is very appealing in this environment. LIMRA expects the growth trajectory for RILA will continue for the foreseeable future, especially as more broker dealers add RILAs into their product mix.”
Traditional Variable Annuities
Traditional variable annuity sales were $14.7 billion in the second quarter, a 4% decline that LIMRA attributed to market volatility in April. Traditional VA sales were $30.0 billion, up 3% year over year.
Fixed-Rate Deferred
Sales of fixed-rate deferred annuities (FRD) totaled $44.2 billion in the second quarter, up 9% year over year. FRD annuity sales totaled $83.9 billion so far this year, level with prior-year results.
“Although FRD sales have rebounded from the sluggish start in the first quarter, monthly data suggests sales are sliding as interest rates stabilize and likely investors have already secured FRD contracts,” Golembiewski said. “Strong equity market growth has dampened new FRD sales. That said, FRD crediting rates, on average, continue to outperform CD rates, making them the most attractive, short-term solutions for risk-adverse investors.”
Fixed Indexed Annuities
Sales of fixed indexed annuity (FIA) in the second remained level with the previous year’s results at $31.4 billion. Year-to-date, FIA sales were $59.2 billion, down slightly from the first half of 2024.
“FIA sales growth contracted slightly due to FRD cannibalization,” said Golembiewski. “Yet FIA’s value proposition remains very strong as clients and financial professionals look for guaranteed income and protected growth.”
Income Annuities
Second quarter sales of single premium immediate annuity (SPIA) sales were $3.4 billion, similar to results from a year earlier. But in the first half of 2025, SPIA sales declined 8% to $6.5 billion. Sales of deferred income annuities (DIA) fell 7% to $1.2 billion in the second quarter. Year to date, DIA sales were $2.1 billion, a 14% decline year over year from the record set in the first half of 2024.
“For the seventh consecutive quarter, U.S. annuity sales have topped $100 billion,” Hodgens reported. “This ‘new normal’ in the U.S. annuity market is partially because of industry efforts to educate consumers and advisors about the value of including a guaranteed lifetime income stream into a retirement plan.”
Despite that, Hodgens expressed dissatisfaction with the current situation. “Today, just 1 in 5 pre-retirees own an annuity and nearly half say they won’t have enough guaranteed income to cover basic living expenses. With the Alliance for Lifetime Income coming under LIMRA’s umbrella, we will carry on the mission to help Americans understand the role annuities play in achieving financial security in retirement.”
For a summary of the sales results, go to LIMRA’s Fact Tank.
