Annuity Sales Hit a New Record: What It Signals

Industry sales data is not personal advice—but it can be a useful indicator of what retirees and near-retirees are prioritizing. LIMRA reported that total U.S. annuity sales rose to a new quarterly record in the third quarter of 2025.

The Headline Number

According to LIMRA, total U.S. annuity sales increased 5% to $121.2 billion in Q3 2025, marking the first time quarterly annuity sales exceeded $120 billion and extending a multi-quarter stretch of elevated sales activity.

What “Record Sales” Often Reflects

When a retirement-income category grows rapidly, it usually points to a combination of practical forces rather than a single trend. Common drivers include:

• Income certainty demand: households value predictable baseline income when markets feel uncertain.
• Rate environment: interest-rate levels can influence the attractiveness of certain guaranteed features.
• Behavioral clarity: many retirees prefer a plan that reduces the need for constant decision-making.

What This Does NOT Mean

It is just as important to be clear about what sales data does not tell you:

• It does not mean the same solution fits every retiree.
• It does not replace household-specific planning around taxes, timing, and income needs.
• It does not eliminate the need to understand tradeoffs such as liquidity, fees, and guarantees.

A Practical Lens: “Baseline Income” vs. “Flexible Income”

Retirement plans tend to function best when income is organized into two categories:

• Baseline income covers necessities (housing, utilities, food, healthcare, insurance).
• Flexible income funds discretionary goals (travel, gifting, hobbies, upgrades).

Sales trends often rise when households feel a stronger need to secure the baseline portion first.

At-a-Glance: Questions Retirees Often Ask When Income Stability Matters

Planning Question	Why It Matters
How much monthly income do we need for essentials?	Defines the baseline income target your plan must cover.
What risks are we trying to reduce (market swings, longevity, inflation)?	Clarifies the job your income strategy is meant to do.
How important is liquidity in the first 5–10 years?	Helps prevent “locked money” anxiety and poor fit decisions.

Checklist: How to Use This News Productively

• Use the record-sales headline as a prompt to review your own baseline-income coverage.
• Stress-test your plan for a “bad sequence” early in retirement (volatility + withdrawals).
• Clarify which dollars need to remain liquid and which dollars are earmarked for long-term income stability.
• Document your income priorities before comparing solutions—clarity prevents reactive decisions.

Source: LIMRA. Read the original release.