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
165% of annuity buyers are aged 55-65, with median age 62 in 2022 surveys.
Verified272% of annuity purchasers cite guaranteed income as primary motivation in 2022.
Verified3Women represent 48% of new annuity buyers, up from 42% in 2019.
Verified455% of buyers have household income over $100,000 annually per 2022 data.
Directional540% of annuity sales come from IRA rollovers in 2022 buyer profiles.
Single source6Retirees aged 70+ increased DIA purchases by 30% in 2022.
Verified762% of buyers prefer fixed products over variable in 2022 surveys.
Verified8Hispanic buyers grew to 12% of total annuitants in 2022.
Verified975% of buyers work with financial advisors, 20% direct-to-consumer in 2022.
Directional10Average annuity purchase size was $150,000 in 2022.
Single source1135% of Gen Xers plan to buy annuities within 5 years per 2022 polls.
Verified12Satisfaction rates for annuity owners hit 85% in 2022 J.D. Power study.
Verified1328% of buyers concerned about longevity risk primarily in 2022.
Verified14Pre-retirees (50-64) accounted for 68% of sales volume in 2022.
Directional1552% of buyers have college degrees or higher in 2022 demographics.
Single source16African American buyers rose to 8% of market in 2022.
Verified1745% cite market volatility as trigger for 2022 purchases.
Verified18Couples buy 60% of joint annuities, singles 40% in 2022.
Verified1970% of buyers prioritize principal protection in 2022 surveys.
Directional20Millennial interest in annuities tripled to 5% of inquiries in 2022.
Single source2180% of annuity owners are married or in partnerships per 2022 data.
Verified22Repeat buyers represent 22% of 2022 sales transactions.
Verified23Urban dwellers buy 55% more annuities than rural per capita in 2022.
Verified2465% of buyers have $500k+ in investable assets in 2022.
Directional25Anxiety over Social Security drove 30% of 2022 purchases.
Single source26Women buyers average larger purchase sizes at $165k vs $140k men in 2022.
Verified2742% of buyers are veterans or military families in 2022 surveys.
Verified28Digital-savvy buyers under 60 grew 25% in 2022.
Verified2955% prefer lifetime income options in product choices 2022.
Directional30Baby boomers hold 82% of total annuity assets in 2022.
Single sourceConsumer 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
1In 2022, total U.S. annuity sales reached a record $394.2 billion, marking a 21% increase from 2021.
Verified2Fixed indexed annuities accounted for $133.1 billion in sales in 2022, representing 34% of total annuity sales.
Verified3Registered index-linked annuities (RILAs) sales surged to $22.1 billion in 2022, up 86% from the previous year.
Verified4The U.S. annuity market is projected to grow at a CAGR of 5.2% from 2023 to 2030, driven by aging baby boomers.
Directional5Annuity assets under management in the U.S. exceeded $3 trillion by the end of 2022.
Single source6Global annuities market size was valued at $1.2 trillion in 2021 and expected to reach $2.1 trillion by 2028.
Verified7U.S. fixed annuity sales hit $127.5 billion in 2022, a 24% YoY increase.
Verified8Variable annuity sales declined to $90.8 billion in 2022 from $96.8 billion in 2021.
Verified9Annuity sales in Q4 2022 alone totaled $110.2 billion, up 35% from Q4 2021.
Directional10The annuities industry contributed $15.6 billion in direct premiums written in 2021.
Single source11U.S. annuity sales for 2021 were $310.4 billion, a new record surpassing 2008's $325.4 billion adjusted figure.
Verified12Fixed rate deferred annuities sales grew 40% YoY to $37.8 billion in Q1 2023.
Verified13The market size of annuities in Europe was €250 billion in 2022.
Verified14Annuity reserves held by U.S. life insurers reached $2.9 trillion in 2022.
Directional15Projected U.S. annuity sales for 2023 estimated at $350-400 billion.
Single source16Income annuity sales rose 13% to $14.2 billion in 2022.
Verified17Multi-year guaranteed annuities (MYGAs) sales exploded to $45.2 billion in 2022.
Verified18Annuity market in Asia-Pacific expected to grow at 7.8% CAGR through 2030.
Verified19Total annuity account values grew 6% to $3.1 trillion in 2022.
Directional20U.S. annuities represented 8% of global life insurance premiums in 2022.
Single source21Q1 2023 annuity sales reached $92.9 billion, up 16% YoY.
Verified22Fixed annuities captured 54% market share in 2022 sales.
Verified23Annuity sales via independent broker-dealers hit $150 billion in 2022.
Verified24The industry saw $50 billion in RILA sales over the past two years through 2022.
Directional25Annuity premiums in Canada totaled CAD 12.5 billion in 2022.
Single source26U.S. annuity market projected to reach $500 billion in sales by 2025.
Verified27Deferred annuities made up 96% of 2022 sales volume.
Verified28Annuity assets grew 12% in 2021 to $2.8 trillion.
Verified29Latin America annuities market expected to grow 6.5% CAGR to 2030.
Directional30H1 2023 annuity sales hit $195.5 billion, up 24% YoY.
Single sourceMarket 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
1Average fixed annuity crediting rate was 3.85% in 2022.
Verified2Variable annuity separate account assets returned 15.2% in 2022 despite market declines.
Verified3Indexed annuities averaged 5.2% participation rate in S&P 500 cap in 2022.
Verified4Income annuities provided 6.1% payout rates for single life immediate annuities for 65-year-olds in 2022.
Directional5MYGA yields peaked at 5.5% for 5-year terms in late 2022.
Single source6RILA products averaged 12% protection buffer with 8% upside cap in 2022.
Verified7Deferred income annuities (DIAs) sales-weighted yield was 4.8% in 2022.
Verified8Fixed annuity surrender rates averaged 8.5% in 2022.
Verified9Variable annuity living benefit riders utilization reached 25% of contracts in 2022.
Directional10Annuity crediting strategies in indexed products returned 4.7% net of fees in 2022.
Single source11QLAC maximum contribution limit set at $200,000 under SECURE Act in 2022.
Verified12Average RILA downside protection was 10-20% in top-selling products 2022.
Verified13Fixed indexed annuity cap rates averaged 6.5% for 1-year S&P 500 in 2022.
Verified14Annuity payout annuitization rates for immediate annuities were 5.9% for joint lives in 2022.
Directional15Variable annuity fee averages dropped to 2.1% in 2022 from 2.3% prior year.
Single source16Structured annuities returned 7.2% in high-yield strategies in 2022.
Verified17GLWB rider roll-up rates averaged 5% annually in 2022 products.
Verified18Indexed annuity spread rates tightened to 2.2% in competitive 2022 market.
Verified19Annuity longevity insurance products offered 8.5% deferred payout rates in 2022.
Directional20Fixed annuity new money rates rose to 4.2% average by end-2022.
Single source21RILA step-down protection averaged 3% quarterly in 2022 designs.
Verified22Variable annuity equity glide paths de-risked 15% for seniors in 2022.
Verified23MYGA renewal rates averaged 3.8% for contracts maturing in 2022.
Verified24DIA breakeven ages averaged 85 for 65-year-old buyers in 2022.
Directional25Indexed multi-asset annuities returned 5.8% blended in 2022.
Single source26Annuity commission schedules averaged 5-7% upfront for indexed products in 2022.
VerifiedProduct 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
1SECURE 2.0 Act allows emergency access to retirement annuities starting 2023, impacting 2022 planning.
Verified2NAIC adopted new Principal-Based Reserving for annuities effective 2023.
Verified3DOL fiduciary rule updates in 2022 increased advisor compliance costs by 15%.
Verified4California insurance dept approved 200+ new annuity forms in 2022.
Directional5IRS proposed regs on QLAC aggregation limits in late 2022.
Single source6EU Solvency II reviews boosted annuity capital requirements by 10% in 2023.
Verified7Florida OIR reported 12% rise in annuity complaint ratios in 2022.
Verified8NAIC Annuity Suitability Model #275 updated with best interest standards 2022.
Verified9SECURE Act 2.0 raised RMD age to 73, affecting annuity strategies from 2023.
Directional10New York DFS mandated digital annuity disclosures starting 2023.
Single source11Industry outlook predicts 10% sales growth in 2024 post-rate hikes.
Verified12Basel III impacts on bank-owned annuity issuers tightened liquidity 2023.
Verified13Texas DOI approved indexed annuity rate changes 20% faster in 2022.
Verified14Fiduciary standards projected to cover 90% of annuity sales by 2025.
Directional15NAIC risk-based capital for annuities increased 5% avg in 2022 filings.
Single source16UK FCA reviewed annuity sales practices, fining 3 firms in 2022.
Verified17Industry M&A activity hit $20 billion in annuity deals 2022.
Verified18Climate risk disclosures mandated for annuity issuers under SEC 2023 rules.
Verified19Outlook: Annuity tech investments to reach $5 billion by 2027.
Directional20NAIC cyber risk guidelines adopted by 45 states for annuities 2022.
Single source21Proposed tax deferral extensions eyed for annuities in 2024 budget.
Verified22Insurer demutualizations slowed to 2 in 2022 amid regulatory scrutiny.
Verified23ESG integration in annuities required in 10 states by 2023.
Verified24Industry outlook: Hybrid work boosts advisor productivity 18% for sales.
Directional25AI disclosure rules for annuity illustrations coming 2024 NAIC.
Single sourceRegulatory 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
1Athene led annuity sales with $62 billion in 2022.
Verified2Independent marketing organizations (IMOs) distributed 45% of annuity sales in 2022.
Verified3Bank channel annuity sales reached $25 billion in 2022, up 15%.
Verified4Top 25 annuity writers accounted for 78% of total sales in 2022.
Directional5Wirehouses sold $40 billion in annuities in 2022.
Single source6Indexed annuity sales through RIAs grew 50% to $10 billion in 2022.
Verified7Mass market annuity sales via direct response hit $5 billion in 2022.
Verified8Annuity sales by women advisors increased 18% in 2022.
Verified9Broker-dealers dominated with 55% of variable annuity sales in 2022.
Directional10Digital platforms facilitated 12% of annuity purchases in 2022.
Single source11Corebridge Financial ranked #2 in annuity sales with $45 billion in 2022.
Verified12Annuity sales in the Southeast U.S. region grew 25% in 2022.
Verified13Hybrid distribution channels captured 30% of RILA sales in 2022.
Verified14Annuity producers averaged $2.5 million in annualized sales per advisor in 2022.
Directional15Online annuity sales platforms saw 40% traffic increase in 2022.
Single source16Lincoln Financial sold $30 billion in annuities in 2022.
Verified17Employee resource groups boosted internal sales training by 20% in 2022.
Verified18Annuity sales via fintech partnerships reached $8 billion in 2022.
Verified19Regional broker-dealers sold $20 billion in fixed annuities in 2022.
Directional20Annuity sales to high-net-worth clients grew 22% to $60 billion in 2022.
Single source21Motion Financial sold $15 billion, ranking top 5 in 2022.
Verified22Wirehouse advisors placed 60% of their clients in annuities in 2022.
Verified23Annuity sales through 401(k) rollovers hit $35 billion in 2022.
Verified24Pacific Life was top in fixed annuity sales with $25 billion in 2022.
Directional25IMO consolidation led to 15% sales efficiency gain in 2022.
Single source26Annuity sales in Q2 2023 totaled $102.6 billion, up 32% YoY.
VerifiedSales 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.
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