Total US annuity sales increased 5% to $121.2bn in the third quarter of 2025, marking the eighth consecutive quarter of $100+bn in sales and setting a new sales record.
Year to date (YTD), annuity sales totalled $347.0bn, up 4% year-over-year, according to LIMRA’s U.S. Individual Annuity Sales Survey, which represents 92% of the total US annuity market.
“Independent broker dealers represented more than half of all registered annuity product sales – traditional variable annuities and registered index-linked annuities – driving the double-digit growth in the third quarter. Recent LIMRA research shows FPs are most inclined to sell these products because of product design improvements, as carriers respond to shifting investor needs,” 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 in 2026, LIMRA is projecting total annuity sales to surpass $450bn in 2025 and remain above $450bn through 2028.”
Registered Index-Linked Annuities
Registered index-linked annuity (RILA) set a new quarterly sales record. In the third quarter of 2025, RILA sales were $20.7bn, 20% higher than the prior year and 20 times the sales recorded a decade ago for this product line. In the first three quarters of 2025, RILA sales increased 19% year over year to $57.4bn.
“In this market, RILAs are particularly attractive and as a result, the RILA market continues to expand as more carriers enter the space or introduce new products,” said Keith Golembiewski, Assistant Vice President and Head of LIMRA Annuity Research.
“LIMRA is projecting RILA sales to exceed $75bn in 2025, and for this market to continue to grow through 2028.”
Traditional Variable Annuities
Traditional variable annuity sales jumped 13% in the third quarter to $17bn. YTD, traditional VA sales were $47.2bn, 7% higher than the same period in 2024.
Fixed-Rate Deferred
Total fixed-rate deferred annuity (FRD) sales were $42.9bn in the third quarter, 6% higher than third quarter 2024 sales. YTD, FRD annuity sales increased 3% year over year to $127.8bn.
“FRD sales have more than doubled from just a few years ago as increased economic uncertainty has attracted risk-adverse investors looking for higher protected investment growth,” noted Golembiewski.
“LIMRA is forecasting FRD sales to set a new sales record in 2025, but interest rate cuts will likely dampen sales activity in 2026.”
Fixed Indexed Annuities
Fixed indexed annuity (FIA) sales fell 6% year over year to $33.2bn in the third quarter. YTD, FIA sales were $93.8bn, slipping 1% from record results posted in the nine months of 2024.
Income Annuities
Single premium immediate annuity (SPIA) sales increased 12% in the third quarter to $3.9bn. YTD, SPIA sales remained level with sales recorded in the first three quarters of 2024. Deferred income annuity (DIA) sales were $1.3bn in the third quarter, down 3% year over year. YTD, DIA product sales fell 10% to $3.4 billion.
“Alliance for Lifetime Income by LIMRA research finds 54% of Baby Boomers and Gen X investors are worried about outliving their assets in retirement, up 6 points from 2024,” noted Hodgens.
“Although 9 in 10 investors recognize annuities can mitigate this risk — offering peace of mind — fewer than 1 in 5 pre-retirees and retirees own an annuity. It is critical that financial professionals discuss the value of creating guaranteed lifetime income with their clients to help them feel more confident in their retirement security.”