Annuity Sales Set New Record in First Half of 2025

• By: Olivia Overman
• August 4, 2025

U.S. annuity sales rose to $223 billion in the first half of 2025, 3% above the first half of 2024, according to preliminary results from LIMRA’s “U.S. Individual Annuity Sales Survey.” This sets a new record, beating the one previously set in the first half of 2024.

Sales were boosted by the second quarter’s total annuity sales of $116.6 billion, a 5% increase on the second quarter of 2024 and the highest quarterly total ever recorded.

“For the third consecutive year, quarterly and year-to-date (YTD) annuity sales have set records” said Bryan Hodgens, senior vice president and head of LIMRA research. “If you look underneath the top-level results, however, we see a slight softening in the market, which 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.”

LIMRA broke down annuities sales by five categories:  

1) Registered index-linked annuities. Registered index-linked annuity (RILA) sales set a new quarterly annuity sales record, totaling $19.6 billion in the second quarter of 2025, up 20% over the second quarter of 2024. Over the first half of 2025, RILA sales increased 20% year over year to $37 million.

“Elevated market volatility in the first quarter calmed in the second, and by the end of June, the markets registered positive growth,” said Keith Golembiewski, assistant vice president and director of LIMRA annuity research. “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.”

2) Traditional variable annuities. Sales of traditional variable annuities fell 4% to $14.7 billion in the second quarter of 2025, primarily as a result of April’s market volatility. Nevertheless, the first half of 2025 saw traditional sales of $30 billion, a 3% gain on the first half of 2024.

3) Fixed-rate deferred. Total fixed-rate deferred annuity (FRD) sales were $44.2 billion in the second quarter of 2025, 9% higher than second quarter of 2024. First-half sales totaled $83.9 billion, 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.”

4) Fixed indexed annuities. Fixed indexed annuity (FIA) sales totaled $31.4 billion in the second quarter, level with prior year results. Year-to-date sales totaled $59.2 billion, a 1% decline from the first half of 2024.

“FIA sales growth contracted slightly due to FRD cannibalization,” Golembiewski said. “Yet FIA’s value proposition remains very strong as clients and financial professionals look for guaranteed income and protected growth.”

5) Income annuities. Single premium immediate annuity (SPIA) sales declined 8% to $6.5 billion in the first half of 2025, following second quarter sales totaling $3.4 billion, which were level with prior year results. Additionally, deferred income annuity (DIA) sales decreased 7% to $1.2 billion in the second quarter of 2025, while first-half sales declined 14% to $2.1 billion from the first half of 2024.    

“For the seventh consecutive quarter, U.S. annuity sales have topped $100 billion,” Hodgens said. “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.”

Hodgens also pointed out that nearly half of U.S. pre-retirees say they won’t have enough guaranteed income to cover basic living expenses, and only 1 in 5 pre-retirees own an annuity.

Olivia Overman is IA content editor.