US individual annuity sales climbed to an estimated $461.3 billion in 2025, up 6% year over year, with indexed products now accounting for nearly half of total volumes, according to preliminary figures from LIMRA.
Fourth-quarter sales rose 12% to $114.4 billion, marking the ninth consecutive quarter in which total annuity sales topped $100 billion. The data comes from LIMRA’s US Individual Annuity Sales Survey, which represents 92% of the US annuity 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,” said Bryan Hodgens (pictured, left), senior vice president and head of LIMRA research. “Expanded capacity, enhanced products, growing distribution and investor demand have propelled sales of these solutions. LIMRA is forecasting RILA and FIA sales to grow through 2028 and expand their market share of the total annuity market.”
The shift has strategic implications for life insurers, many of which have been rebalancing away from more capital-intensive traditional variable annuities toward index-linked designs that offer more controllable risk profiles and, in many cases, lower capital charges. It also reflects the success of wholesalers, independent marketing organizations and broker-dealers in positioning indexed annuities as core tools in retirement income planning.
Fixed indexed annuity (FIA) sales reached $34.4 billion in the fourth quarter, up 8% from a year earlier. For the full year, FIA sales totaled $128.2 billion, 1% higher than in 2024 and the fifth consecutive year of annual growth, setting a new record for the product line.
Registered index-linked annuity (RILA) sales also set new quarterly and annual highs. Fourth-quarter RILA sales were $22.2 billion, up 24% year over year. For 2025, RILA sales increased 20% to $79.6 billion, roughly 10 times the volume recorded a decade ago and extending an 11-year growth streak.
“LIMRA expects the RILA market will continue to expand as more carriers enter the space or introduce new products,” said Keith Golembiewski (pictured, right), assistant vice president and head of LIMRA annuity research. “LIMRA is projecting RILA sales to exceed $85 billion in 2026, and for this market to grow through 2028.”
The rapid growth of RILAs and FIAs is intensifying competition around product design, hedging strategies and advisor education, as firms look to differentiate in a crowded segment while managing regulatory scrutiny over how complex structures are explained and sold.
Traditional variable annuity (VA) sales reached $18 billion in the fourth quarter, up 8% year over year.
For 2025 overall, traditional VA sales were $65.2 billion, a 7% increase on 2024, but VAs remain a smaller share of the market than a decade ago as investors and insurers pivot toward indexed and fixed-rate products.
Meanwhile, fixed-rate deferred (FRD) annuities showed mixed patterns. Fourth-quarter FRD sales fell 24% from the third quarter but were still 12% higher than a year earlier at $32.8 billion. Full-year FRD sales rose 5% to $160.6 billion.
“In the third quarter of 2025, FRD sales were elevated as investors rushed to lock in rates before anticipated interest rate cuts,” Golembiewski said. “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. LIMRA is forecasting 2026 FRD sales to fall below 2025 sales levels as short-duration appeal fades in conjunction with lower interest rates.”
Income annuities posted modest growth. Single premium immediate annuity (SPIA) sales increased 12% in the fourth quarter to $3.5 billion, taking full-year SPIA sales to $14 billion, up 3% from 2024. Deferred income annuity (DIA) sales rose 20% in the fourth quarter to $1.4 billion but declined 3% for the year to $4.8 billion.
Hodgens said product innovation and demographics are both supporting annuity growth.
“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,” he said. “Our research suggests the demand for solutions that offer security - and peace of mind - has never been greater.”
The sustained rise in sales comes amid evolving regulatory and distribution dynamics, including ongoing debates over fiduciary and best-interest standards for annuity recommendations.
Carriers, broker-dealers, RIAs and marketing organizations are being challenged to maintain growth while evidencing robust suitability and advice processes across an increasingly complex product set, LIMRA said.
