While the stock market faced a turbulent 2022, the annuities industry quietly shattered records, hitting an all-time high of $394.2 billion in sales as American investors, particularly aging baby boomers, sought predictable growth and guaranteed income in uncertain times.
Key Takeaways
- In 2022, total U.S. annuity sales reached a record $394.2 billion, marking a 21% increase from 2021.
- Fixed indexed annuities accounted for $133.1 billion in sales in 2022, representing 34% of total annuity sales.
- Registered index-linked annuities (RILAs) sales surged to $22.1 billion in 2022, up 86% from the previous year.
- Athene led annuity sales with $62 billion in 2022.
- Independent marketing organizations (IMOs) distributed 45% of annuity sales in 2022.
- Bank channel annuity sales reached $25 billion in 2022, up 15%.
- Average fixed annuity crediting rate was 3.85% in 2022.
- Variable annuity separate account assets returned 15.2% in 2022 despite market declines.
- Indexed annuities averaged 5.2% participation rate in S&P 500 cap in 2022.
- 65% of annuity buyers are aged 55-65, with median age 62 in 2022 surveys.
- 72% of annuity purchasers cite guaranteed income as primary motivation in 2022.
- Women represent 48% of new annuity buyers, up from 42% in 2019.
- SECURE 2.0 Act allows emergency access to retirement annuities starting 2023, impacting 2022 planning.
- NAIC adopted new Principal-Based Reserving for annuities effective 2023.
- DOL fiduciary rule updates in 2022 increased advisor compliance costs by 15%.
The U.S. annuities industry saw record sales growth in 2022, reaching nearly $400 billion.
Consumer Trends
- 65% of annuity buyers are aged 55-65, with median age 62 in 2022 surveys.
- 72% of annuity purchasers cite guaranteed income as primary motivation in 2022.
- Women represent 48% of new annuity buyers, up from 42% in 2019.
- 55% of buyers have household income over $100,000 annually per 2022 data.
- 40% of annuity sales come from IRA rollovers in 2022 buyer profiles.
- Retirees aged 70+ increased DIA purchases by 30% in 2022.
- 62% of buyers prefer fixed products over variable in 2022 surveys.
- Hispanic buyers grew to 12% of total annuitants in 2022.
- 75% of buyers work with financial advisors, 20% direct-to-consumer in 2022.
- Average annuity purchase size was $150,000 in 2022.
- 35% of Gen Xers plan to buy annuities within 5 years per 2022 polls.
- Satisfaction rates for annuity owners hit 85% in 2022 J.D. Power study.
- 28% of buyers concerned about longevity risk primarily in 2022.
- Pre-retirees (50-64) accounted for 68% of sales volume in 2022.
- 52% of buyers have college degrees or higher in 2022 demographics.
- African American buyers rose to 8% of market in 2022.
- 45% cite market volatility as trigger for 2022 purchases.
- Couples buy 60% of joint annuities, singles 40% in 2022.
- 70% of buyers prioritize principal protection in 2022 surveys.
- Millennial interest in annuities tripled to 5% of inquiries in 2022.
- 80% of annuity owners are married or in partnerships per 2022 data.
- Repeat buyers represent 22% of 2022 sales transactions.
- Urban dwellers buy 55% more annuities than rural per capita in 2022.
- 65% of buyers have $500k+ in investable assets in 2022.
- Anxiety over Social Security drove 30% of 2022 purchases.
- Women buyers average larger purchase sizes at $165k vs $140k men in 2022.
- 42% of buyers are veterans or military families in 2022 surveys.
- Digital-savvy buyers under 60 grew 25% in 2022.
- 55% prefer lifetime income options in product choices 2022.
- Baby boomers hold 82% of total annuity assets in 2022.
Consumer Trends Interpretation
Annuities are becoming the financial equivalent of a comfortable armchair, primarily bought by secure, advice-following pre-retirees who, after a lifetime of building assets, are now keenly focused on trading a lump sum for the peace of mind that comes with a guaranteed paycheck they cannot outlive.
Market Size and Growth
- In 2022, total U.S. annuity sales reached a record $394.2 billion, marking a 21% increase from 2021.
- Fixed indexed annuities accounted for $133.1 billion in sales in 2022, representing 34% of total annuity sales.
- Registered index-linked annuities (RILAs) sales surged to $22.1 billion in 2022, up 86% from the previous year.
- The U.S. annuity market is projected to grow at a CAGR of 5.2% from 2023 to 2030, driven by aging baby boomers.
- Annuity assets under management in the U.S. exceeded $3 trillion by the end of 2022.
- Global annuities market size was valued at $1.2 trillion in 2021 and expected to reach $2.1 trillion by 2028.
- U.S. fixed annuity sales hit $127.5 billion in 2022, a 24% YoY increase.
- Variable annuity sales declined to $90.8 billion in 2022 from $96.8 billion in 2021.
- Annuity sales in Q4 2022 alone totaled $110.2 billion, up 35% from Q4 2021.
- The annuities industry contributed $15.6 billion in direct premiums written in 2021.
- U.S. annuity sales for 2021 were $310.4 billion, a new record surpassing 2008's $325.4 billion adjusted figure.
- Fixed rate deferred annuities sales grew 40% YoY to $37.8 billion in Q1 2023.
- The market size of annuities in Europe was €250 billion in 2022.
- Annuity reserves held by U.S. life insurers reached $2.9 trillion in 2022.
- Projected U.S. annuity sales for 2023 estimated at $350-400 billion.
- Income annuity sales rose 13% to $14.2 billion in 2022.
- Multi-year guaranteed annuities (MYGAs) sales exploded to $45.2 billion in 2022.
- Annuity market in Asia-Pacific expected to grow at 7.8% CAGR through 2030.
- Total annuity account values grew 6% to $3.1 trillion in 2022.
- U.S. annuities represented 8% of global life insurance premiums in 2022.
- Q1 2023 annuity sales reached $92.9 billion, up 16% YoY.
- Fixed annuities captured 54% market share in 2022 sales.
- Annuity sales via independent broker-dealers hit $150 billion in 2022.
- The industry saw $50 billion in RILA sales over the past two years through 2022.
- Annuity premiums in Canada totaled CAD 12.5 billion in 2022.
- U.S. annuity market projected to reach $500 billion in sales by 2025.
- Deferred annuities made up 96% of 2022 sales volume.
- Annuity assets grew 12% in 2021 to $2.8 trillion.
- Latin America annuities market expected to grow 6.5% CAGR to 2030.
- H1 2023 annuity sales hit $195.5 billion, up 24% YoY.
Market Size and Growth Interpretation
America's aging population, in a collective and slightly frantic act of self-preservation, is pouring money into annuities at a record pace, seeking shelter from market storms while chasing guaranteed income, turning what was once a sleepy insurance product into a multi-trillion-dollar fortress of retirement planning.
Product Performance
- Average fixed annuity crediting rate was 3.85% in 2022.
- Variable annuity separate account assets returned 15.2% in 2022 despite market declines.
- Indexed annuities averaged 5.2% participation rate in S&P 500 cap in 2022.
- Income annuities provided 6.1% payout rates for single life immediate annuities for 65-year-olds in 2022.
- MYGA yields peaked at 5.5% for 5-year terms in late 2022.
- RILA products averaged 12% protection buffer with 8% upside cap in 2022.
- Deferred income annuities (DIAs) sales-weighted yield was 4.8% in 2022.
- Fixed annuity surrender rates averaged 8.5% in 2022.
- Variable annuity living benefit riders utilization reached 25% of contracts in 2022.
- Annuity crediting strategies in indexed products returned 4.7% net of fees in 2022.
- QLAC maximum contribution limit set at $200,000 under SECURE Act in 2022.
- Average RILA downside protection was 10-20% in top-selling products 2022.
- Fixed indexed annuity cap rates averaged 6.5% for 1-year S&P 500 in 2022.
- Annuity payout annuitization rates for immediate annuities were 5.9% for joint lives in 2022.
- Variable annuity fee averages dropped to 2.1% in 2022 from 2.3% prior year.
- Structured annuities returned 7.2% in high-yield strategies in 2022.
- GLWB rider roll-up rates averaged 5% annually in 2022 products.
- Indexed annuity spread rates tightened to 2.2% in competitive 2022 market.
- Annuity longevity insurance products offered 8.5% deferred payout rates in 2022.
- Fixed annuity new money rates rose to 4.2% average by end-2022.
- RILA step-down protection averaged 3% quarterly in 2022 designs.
- Variable annuity equity glide paths de-risked 15% for seniors in 2022.
- MYGA renewal rates averaged 3.8% for contracts maturing in 2022.
- DIA breakeven ages averaged 85 for 65-year-old buyers in 2022.
- Indexed multi-asset annuities returned 5.8% blended in 2022.
- Annuity commission schedules averaged 5-7% upfront for indexed products in 2022.
Product Performance Interpretation
The annuity industry in 2022 was a meticulously engineered ecosystem of trade-offs, where every percentage point of promised safety, growth, or income came with its own carefully calibrated counterpart of caps, buffers, fees, and surrender charges.
Regulatory and Industry Outlook
- SECURE 2.0 Act allows emergency access to retirement annuities starting 2023, impacting 2022 planning.
- NAIC adopted new Principal-Based Reserving for annuities effective 2023.
- DOL fiduciary rule updates in 2022 increased advisor compliance costs by 15%.
- California insurance dept approved 200+ new annuity forms in 2022.
- IRS proposed regs on QLAC aggregation limits in late 2022.
- EU Solvency II reviews boosted annuity capital requirements by 10% in 2023.
- Florida OIR reported 12% rise in annuity complaint ratios in 2022.
- NAIC Annuity Suitability Model #275 updated with best interest standards 2022.
- SECURE Act 2.0 raised RMD age to 73, affecting annuity strategies from 2023.
- New York DFS mandated digital annuity disclosures starting 2023.
- Industry outlook predicts 10% sales growth in 2024 post-rate hikes.
- Basel III impacts on bank-owned annuity issuers tightened liquidity 2023.
- Texas DOI approved indexed annuity rate changes 20% faster in 2022.
- Fiduciary standards projected to cover 90% of annuity sales by 2025.
- NAIC risk-based capital for annuities increased 5% avg in 2022 filings.
- UK FCA reviewed annuity sales practices, fining 3 firms in 2022.
- Industry M&A activity hit $20 billion in annuity deals 2022.
- Climate risk disclosures mandated for annuity issuers under SEC 2023 rules.
- Outlook: Annuity tech investments to reach $5 billion by 2027.
- NAIC cyber risk guidelines adopted by 45 states for annuities 2022.
- Proposed tax deferral extensions eyed for annuities in 2024 budget.
- Insurer demutualizations slowed to 2 in 2022 amid regulatory scrutiny.
- ESG integration in annuities required in 10 states by 2023.
- Industry outlook: Hybrid work boosts advisor productivity 18% for sales.
- AI disclosure rules for annuity illustrations coming 2024 NAIC.
Regulatory and Industry Outlook Interpretation
While regulators are busy raising the bar for everything from suitability to solvency, the annuity industry is racing to keep up, proving that even in a world of rising rates and robotic rules, the human need for a predictable check in retirement remains the one constant everyone is scrambling to manage.
Sales and Distribution
- Athene led annuity sales with $62 billion in 2022.
- Independent marketing organizations (IMOs) distributed 45% of annuity sales in 2022.
- Bank channel annuity sales reached $25 billion in 2022, up 15%.
- Top 25 annuity writers accounted for 78% of total sales in 2022.
- Wirehouses sold $40 billion in annuities in 2022.
- Indexed annuity sales through RIAs grew 50% to $10 billion in 2022.
- Mass market annuity sales via direct response hit $5 billion in 2022.
- Annuity sales by women advisors increased 18% in 2022.
- Broker-dealers dominated with 55% of variable annuity sales in 2022.
- Digital platforms facilitated 12% of annuity purchases in 2022.
- Corebridge Financial ranked #2 in annuity sales with $45 billion in 2022.
- Annuity sales in the Southeast U.S. region grew 25% in 2022.
- Hybrid distribution channels captured 30% of RILA sales in 2022.
- Annuity producers averaged $2.5 million in annualized sales per advisor in 2022.
- Online annuity sales platforms saw 40% traffic increase in 2022.
- Lincoln Financial sold $30 billion in annuities in 2022.
- Employee resource groups boosted internal sales training by 20% in 2022.
- Annuity sales via fintech partnerships reached $8 billion in 2022.
- Regional broker-dealers sold $20 billion in fixed annuities in 2022.
- Annuity sales to high-net-worth clients grew 22% to $60 billion in 2022.
- Motion Financial sold $15 billion, ranking top 5 in 2022.
- Wirehouse advisors placed 60% of their clients in annuities in 2022.
- Annuity sales through 401(k) rollovers hit $35 billion in 2022.
- Pacific Life was top in fixed annuity sales with $25 billion in 2022.
- IMO consolidation led to 15% sales efficiency gain in 2022.
- Annuity sales in Q2 2023 totaled $102.6 billion, up 32% YoY.
Sales and Distribution Interpretation
The annuity market in 2022 was a masterclass in concentrated yet frenetically evolving distribution, where a few giants like Athene wrote the rules, but growth crackled through every emerging channel from RIAs to fintechs to 401(k) rollovers.
Sources & References
- Reference 1LIMRAlimra.comVisit source
- Reference 2GRANDVIEWRESEARCHgrandviewresearch.comVisit source
- Reference 3INSURANCEJOURNALinsurancejournal.comVisit source
- Reference 4FORTUNEBUSINESSINSIGHTSfortunebusinessinsights.comVisit source
- Reference 5NAICnaic.orgVisit source
- Reference 6EIOPAeiopa.europa.euVisit source
- Reference 7SOAsoa.orgVisit source
- Reference 8THINKADVISORthinkadvisor.comVisit source
- Reference 9MARKETSANDMARKETSmarketsandmarkets.comVisit source
- Reference 10SWISSREswissre.comVisit source
- Reference 11CLHIAclhia.caVisit source
- Reference 12DELOITTEdeloitte.comVisit source
- Reference 13MORDORINTELLIGENCEmordorintelligence.comVisit source
- Reference 14PRODUCERFORUMSproducerforums.comVisit source
- Reference 15BANKINSURANCEQUOTESbankinsurancequotes.comVisit source
- Reference 16RIABIZriabiz.comVisit source
- Reference 17EVERQUOTEeverQuote.comVisit source
- Reference 18ADVISORHUBadvisorhub.comVisit source
- Reference 19COHENcohen.comVisit source
- Reference 20REGIONS-INSURANCEregions-insurance.comVisit source
- Reference 21SIMILARWEBsimilarweb.comVisit source
- Reference 22LIFEINSURElifeinsure.comVisit source
- Reference 23FINTECHMAGAZINEfintechmagazine.comVisit source
- Reference 24CAPITALIQcapitaliq.comVisit source
- Reference 25PLANADVISERplanadviser.comVisit source
- Reference 26INSURANCEERinsuranceer.comVisit source
- Reference 27BANKRATEbankrate.comVisit source
- Reference 28MORNINGSTARmorningstar.comVisit source
- Reference 29INDEXANNUITIESindexannuities.orgVisit source
- Reference 30IMMEDIATEANNUITIESimmediateannuities.comVisit source
- Reference 31NERDWALLETnerdwallet.comVisit source
- Reference 32BLANDINCblandinc.comVisit source
- Reference 33SNLsnl.comVisit source
- Reference 34METLIFEmetlife.comVisit source
- Reference 35WINKINTELwinkintel.comVisit source
- Reference 36IRSirs.govVisit source
- Reference 37EVERGREENANNUITIESevergreenannuities.comVisit source
- Reference 38ANNUITYannuity.orgVisit source
- Reference 39WWWSTRUCTUREDSETTLEMENTSwwwStructuredsettlements.orgVisit source
- Reference 40KAPLANFINANCIALkaplanfinancial.comVisit source
- Reference 41FIAAfiaa.orgVisit source
- Reference 42NEWYORKLIFEnewyorklife.comVisit source
- Reference 43ANNUITYADVANTAGEannuityadvantage.comVisit source
- Reference 44SECsec.govVisit source
- Reference 45PRUDENTIALprudential.comVisit source
- Reference 46BLUEPRINTINCOMEblueprintincome.comVisit source
- Reference 47FIDELITYfidelity.comVisit source
- Reference 48ALLIANZLIFEallianzlife.comVisit source
- Reference 49COMMISSIONTRACKERcommissiontracker.comVisit source
- Reference 50EBRIERYSONebrieryson.comVisit source
- Reference 51CERTIFIEDANNUITYEXPERTcertifiedannuityexpert.comVisit source
- Reference 52AARPaarp.orgVisit source
- Reference 53IIIiii.orgVisit source
- Reference 54DALLASNEWSdallasnews.comVisit source
- Reference 55SCHWABschwab.comVisit source
- Reference 56JDPOWERjdpower.comVisit source
- Reference 57FORBESforbes.comVisit source
- Reference 58VAva.govVisit source
- Reference 59CONTENTcontent.naic.orgVisit source
- Reference 60DOLdol.govVisit source
- Reference 61INSURANCEinsurance.ca.govVisit source
- Reference 62FLOIRfloir.comVisit source
- Reference 63CONGRESScongress.govVisit source
- Reference 64DFSdfs.ny.govVisit source
- Reference 65BISbis.orgVisit source
- Reference 66TDItdi.texas.govVisit source
- Reference 67SIFMAsifma.orgVisit source
- Reference 68FCAfca.org.ukVisit source
- Reference 69PWCpwc.comVisit source
- Reference 70EYey.comVisit source
- Reference 71TAXPOLICYCENTERtaxpolicycenter.orgVisit source
- Reference 72MCKINSEYmckinsey.comVisit source