Variable Annuities Rebound in 2024
Total annuity sales reached a record $432.4 billion in 2024, marking a 12% increase from the previous year and the third consecutive year of growth. Despite strong overall performance, declining interest rates in late 2024 led to a 13% drop in fixed-rate deferred and income annuities, as investors shifted toward products with higher growth potential.
Traditional variable annuities saw their first annual increase in three years, rising 19% to $61.2 billion, fueled by strong equity markets and product innovation. Experts anticipate continued strength in annuity sales for 2025, and variable annuities could have another positive year’s annuities.
LIMRA attributes this sustained demand to growing consumer interest in investment protection and guaranteed retirement income. Final industry rankings for 2024 will be released in March after earnings reports are completed.
Finsum: This could be the play for income investors worried about rising rates but need some upside exposure in 2025.
- annuities
- variable annuities
- income investing
