Annuity Sales Hit Record $464.1 Billion in 2025 as Higher Rates Lift Payouts to 10-Year Peaks
Updated
Updated · Money Talks News · May 22
Annuity Sales Hit Record $464.1 Billion in 2025 as Higher Rates Lift Payouts to 10-Year Peaks
1 articles · Updated · Money Talks News · May 22
$464.1 billion in annuity sales set a fourth straight annual record in 2025, with single-premium immediate annuity sales rising 23% in Q4 as retirees chased richer guaranteed income.
4.6% 10-year Treasury yields—up from about 1% during the pandemic—have pushed immediate-annuity payouts to their highest levels in more than a decade by boosting insurers' bond income.
$100,000 now buys roughly $625 a month for a 65-year-old man and about $590 for a woman, around 25% to 30% more than similar contracts paid four years ago.
4.1 million Americans turn 65 each year, but the window may narrow as markets price in Fed rate cuts and LIMRA expects weaker fixed-annuity sales in 2026.
3.8% inflation still erodes fixed payments over time, while commissions, complex products and insurer-guaranty limits of $250,000 to $500,000 remain key risks for buyers.