2024’s Annuity Surge: What It Means for Future Buyers
February 20, 2025
Annuity sales reached an extraordinary $432.4 billion in 2024, reflecting a 12% increase from the previous year and solidifying three consecutive years of record-breaking growth. This remarkable rise highlights how economic uncertainty has reshaped retirement planning, prompting many to seek financial tools that offer stability and guaranteed income. The growing appeal of annuities lies in their ability to provide protection against market fluctuations while ensuring a steady stream of income during retirement.
Companies such as 1891 Financial Life have stepped forward with tailored solutions designed to meet these evolving needs. As the focus shifts to 2025, many are evaluating whether this upward trend will continue and how annuities can fit into a well-rounded retirement strategy.
Why Annuities Are More Popular Than Ever
Several factors explain the increasing appeal of annuities, each tied to evolving retirement needs and financial concerns.
People Are Living Longer
Life expectancy rates are rising, meaning many retirees now face decades of life after leaving the workforce. This shift has created an urgent need for financial products that provide consistent income over time. Annuities address this challenge by offering guaranteed payouts that can last throughout retirement, ensuring peace of mind for those who want to avoid outliving their savings.
Market Volatility & Protection Needs
Fluctuating markets and economic instability have pushed many to seek alternatives to traditional investments. Fixed indexed annuities (FIAs), for example, combine growth potential with protection against market losses, making them an attractive choice for those who prioritize stability without sacrificing opportunity.
Diverse Annuity Options
The flexibility of annuities adds to their appeal. Whether someone is interested in fixed-rate deferred annuities (FRDAs) or FIAs, there is a product tailored to specific financial goals. These options allow people to choose between guaranteed income streams, market-linked growth potential, or a mix of both approaches.
1891 Financial Life’s Commitment
1891 Financial Life distinguishes itself through its dedication to helping people achieve financial stability. Our range of annuity products aligns with the needs of those seeking security during retirement. With personalized solutions that fit into any retirement strategy, 1891 Financial Life provides the tools necessary to build a secure future.
2024 Annuity Trends: What They Mean for 2025 Buyers
The 2024 trends offer important insights into what buyers can expect in the coming year. Here are those predictions.
Fixed-Rate Deferred Annuities May Decline
As interest rates fall, fixed-rate deferred annuities may become less appealing. However, multi-year guaranteed annuities (MYGAs) remain competitive due to their guaranteed returns over specified terms. Products offered through 1891 Financial Life often include additional features that enhance flexibility.
Fixed Indexed Annuities Will Remain Strong
FIA sales reached $125.5 billion in 2024, driven by their ability to offer growth potential while protecting principal investments from market downturns. Experts anticipate that demand will remain strong as more people seek balanced solutions for retirement planning.
Income Annuities Face Interest Rate Sensitivity
Single premium immediate annuities (SPIAs) and deferred income annuities remain essential components of long-term retirement strategies. While sensitive to interest rate changes, these products deliver reliable income streams that many retirees value highly.
Annuity Solutions for Every Stage of Retirement
Annuities offer versatile solutions tailored to different phases of retirement, which is why they can meet a wide range of financial goals.
Immediate Income Products
SPIAs provide guaranteed payments either for life or a set period, offering stability during the early years of retirement when income needs are highest.
Flexible Annuities
Products such as IRA annuities, Roth IRA annuities, and non-qualified annuities cater to different financial situations while providing tax advantages and guaranteed minimum interest rates.
Multi-Year Guaranteed Annuities
MYGAs stand out due to their reliability and additional features:
- Free partial withdrawal rider: Allows penalty-free access to up to 10% of funds after the first year
- Terminal illness/Nursing home rider: Waives penalties under qualifying conditions
- Enhanced death benefit rider: Passes the full accumulation value directly to beneficiaries
These features make MYGAs an excellent choice for those seeking both security and adaptability as part of their retirement strategy.
Is Now the Right Time to Buy an Annuity? Key Considerations for 2025
There are many factors to consider, and we have a few tips to help you determine whether now is the right time to purchase an annuity or wait.
Locking in Rates Vs. Waiting
Interest rates significantly impact annuity payout rates. Locking in current rates might be advantageous if guaranteed income is a priority. On the other hand, those focused on growth potential may find indexed products more suitable.
Understanding Your Retirement Goals
Financial objectives should drive product selection. Do you need immediate income? Or are you looking for long-term growth combined with some level of protection?
Product Comparisons Matter
Choosing the right consumer annuities requires understanding how different products align with your financial goals. Working with 1891 Financial Life representatives helps match the best option to your retirement strategy, ensuring long-term security.
Securing Your Future With 1891 Financial Life
Annuities have proven themselves as one of the most effective tools for achieving retirement security, and 2025 presents promising opportunities for buyers seeking stability and growth. Whether you’re interested in guaranteed income, tax advantages, or long-term financial security, 1891 Financial Life offers options tailored to diverse goals.
Starting early strengthens your financial foundation and provides peace of mind as you approach retirement. Contact an 1891 Financial Life representative today!
About 1891 Financial Life
Our culture is about looking out — for you, for others, for family, for the community. That is how we go “Beyond Life Insurance.”
At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of "The World's Best Life Insurance Companies."
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.