The $461B Boom That Advisors Can’t Ignore

The stock market delivered another strong performance last year, with the S&P 500 finishing up 16.4%, capping three consecutive years of double-digit gains driven heavily by tech and AI-related names. Despite some early turbulence — including a sharp drop on Liberation Day amid worldwide tariffs — markets climbed the wall of worry, rebounding sharply and hitting new highs by year-end.

But that wasn’t the only thing breaking records.

Annuities, which have had a mixed reputation — loved for their guarantees but often avoided due to complexity or cost — shattered records for a fourth consecutive year. According to LIMRA’s annuity survey, U.S. retail annuity volume rose 6% to $461.3 billion in 2025, with fourth-quarter sales up 12% to $114.4 billion, marking the ninth straight quarter above $100 billion.

What’s driving this resurgence amid a bull market? For many clients, market volatility and interest rate uncertainty make guarantees more appealing than chasing returns. Fixed or index-linked annuities can provide a predictable floor and, in some cases, lifetime income streams — features that feel especially attractive to older generations or those nearing retirement.

In addition, older generations that have lived through the dot-com bubble and the great financial crisis (2007-09) are aware of how quickly gains can evaporate. And poor returns early in retirement often lead to derailed spending plans for years.