U.S. retail annuity sales reached a new high in 2025, marking the fourth consecutive year of record growth. According to preliminary results from LIMRA’s U.S. Individual Annuity Sales Survey, total annuity sales increased 6% to $461.3 billion for the year. The survey represents 92% of the total U.S. annuity market.
Sales activity remained strong throughout the year. In the fourth quarter alone, annuity sales rose 12% to $114.4 billion. This marked the ninth consecutive quarter in which quarterly annuity sales exceeded $100 billion.
LIMRA reported that indexed annuity products played a significant role in this growth. Registered index-linked annuities and fixed indexed annuities together accounted for 45% of total annuity sales in 2025. A decade ago, these products represented 24% of the market.
“Indexed products — registered index-linked and fixed indexed annuities — represented 45% of total sales in 2025, up from just 24% market share a decade ago. Expanded capacity, enhanced products, growing distribution and investor demand have propelled sales of these solutions,” said Bryan Hodgens, senior vice president and head of LIMRA research. Hodgens added that LIMRA forecasts RILA and FIA sales will continue to grow through 2028 and expand their share of the overall annuity market.
Fixed Indexed Annuities
Fixed indexed annuities continued to post strong results. Fourth quarter FIA sales increased 8% year over year to $34.4 billion. For the full year, FIA sales reached $128.2 billion, a 1% increase from 2024.
This performance marks the fifth consecutive year of annual growth for the product line and establishes a new sales record for fixed indexed annuities.
Registered Index-Linked Annuities
Registered index-linked annuities also reached new sales milestones. Fourth-quarter RILA sales totaled $22.2 billion, 24% higher than the same period in the prior year.
For the full year, RILA sales increased 20% to $79.6 billion. According to LIMRA, this amount is 10 times higher than the sales recorded for the product line a decade ago. The increase also represents the 11th consecutive year of growth for RILAs.
“LIMRA expects the RILA market will continue to expand as more carriers enter the space or introduce new products,” said Keith Golembiewski, assistant vice president and head of LIMRA Annuity Research. He noted that LIMRA projects RILA sales to exceed $85 billion in 2026 and expects continued growth through 2028.
Traditional Variable Annuities
Traditional variable annuity sales also increased during the year. In the fourth quarter of 2025, sales totaled $18 billion, up 8% from the fourth quarter of 2024.
For the full year, traditional variable annuity sales rose 7% to $65.2 billion.
Fixed-Rate Deferred Annuities
Fixed-rate deferred annuity sales showed mixed results during the fourth quarter but remained strong year over year. Fourth quarter FRD sales totaled $32.8 billion, reflecting a 12% increase compared with the same quarter in 2024. However, sales declined 24% from the prior quarter.
For the full year, FRD sales totaled $160.6 billion, up 5% from 2024.
“In the third quarter of 2025, FRD sales were elevated as investors rushed to lock in rates before anticipated interest rate cuts,” said Golembiewski. “Though fourth quarter sales have normalized, FRD products continue, on average, to offer better rates than CDs and remain attractive to risk-averse investors who are looking for higher protected investment growth.”
Golembiewski also noted that LIMRA forecasts FRD sales in 2026 will fall below 2025 levels as short-duration appeal fades alongside lower interest rates.
Income Annuities
Income annuity products also recorded changes during the year. Fourth-quarter single-premium immediate annuity sales increased 12% to $3.5 billion. For the full year, SPIA sales rose 3% to $14 billion.
Deferred income annuity sales reached $1.4 billion in the fourth quarter, reflecting a 20% increase. However, full-year DIA sales declined 3% to $4.8 billion in 2025.
Demand for Retirement Income Solutions
LIMRA noted that the annuity industry has expanded its product offerings in recent years to address investor needs.
“Over the past five years, industry has done a remarkable job of expanding and enhancing the portfolio of annuity solutions to meet the needs of today’s investors,” Hodgens said.
He also referenced the demographic trend known as Peak65, a period in which more than 4 million Americans turn 65 each year. Many of these individuals have fewer sources of protected lifetime income available in retirement.
Hodgens said LIMRA research indicates that demand for solutions providing financial security and peace of mind remains high. As a result, LIMRA has expanded its efforts to help engage and educate financial professionals and consumers about the role annuities can play in a comprehensive retirement plan designed to provide lifetime financial security.
Preliminary fourth quarter 2025 annuity industry estimates are based on monthly reporting. Additional details are available through LIMRA’s Fact Tank.
LIMRA plans to release the top 20 rankings of total, variable, and fixed annuity carriers for 2025 in mid-March following the final earnings calls for participating carriers.
LIMRA’s Retail Annuity Sales Survey represents 92% of the U.S. market. With more than 100 years of experience, LIMRA conducts more than 80 benchmark studies each year and produces nearly 500 reports annually for members and the broader insurance industry. These studies provide insight into market dynamics, trends, and consumer behavior.
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