Annuity sales in the U.S. in 2022 totaled $310.6 billion, according to the Life Insurance Marketing and Research Association. That's a 22% increase from the 2021 sales of $254.9 billion. Sales for variable annuities were at $102.6 billion, while fixed-annuity sales numbers reached $208 billion. Previously, a look at annuity statistics shows that 2008 had the highest record at $265 billion. That's almost 17% lower than the new record set in 2022.

KEY STATISTICS ON US ANNUITIES

Annuities can be a source of continuous income in retirement, making them an attractive option for people seeking financial security later in life. In recent years, the popularity of annuities has been on the rise.

  • Total U.S. annuity sales surged to $310.6 billion in 2022, a 23% increase from 2021 results and 15% higher than the record set in 2008.
  • In 2022, the total U.S. fixed annuity market reached $208 billion, a 60% increase from 2021. Fixed-rate deferred annuities make up most of the total at $112.1 billion.
  • Total U.S. variable annuity sales reached $102.6 billion in 2022, down 18% from $125.3 billion in 2021. The largest contributor was traditional variable annuities at $61.7 billion.
  • As of Q3 2022, the top three annuity companies in terms of sale volume are New York Life, Corebridge Financial and Athene Annuity & Life.

Sources: LIMRA News Release, LIMRA Preliminary Fourth Quarter 2022 Sales, U.S. Individual Annuity Sales (3rd Quarter 2022 YTD)

US Annuity Market Overview

Annuities are financial products that guarantee a regular income for the rest of your life. They’re a popular option in retirement planning since they can replace the income you lose when you finally decide to stop working. You can receive payments immediately (as soon as a year after purchasing them) or after several years, allowing them to accumulate interest. Annuity contracts come in two types — fixed and variable — and knowing the difference between them can help you determine which one is a better product for you.

Annuity sales reached an all-time high of $310.6 billion in 2022. Looking at annuity statistics since 2019, you'll see that the trend has not always gone upward.

From total sales of $241.7 billion in 2019, the annuity market decreased to $219 billion the following year — a 9% decrease. The revenue from variable annuities in 2020 was 3% lower than 2019 figures, while fixed annuities sales decreased by 14%.

Overall annuity sales in the U.S. bounced back in 2021, climbing 16% from the end-of-year figures in 2020. SRI Annuity Research determined that the market had pent-up demand for investment options, and investors naturally gravitated towards products that offered protection and growth.

From then, sales grew by another 22% the following year. Comparing 2022 numbers to 2008, which previously held the record for the year with the highest annuity sales, 2022’s sales were 17% higher.

Total US Annuity Sales

Sources: Preliminary U.S. Annuity Fourth Quarter 2022 Sales Estimates, Fourth Quarter 2020 U.S. Annuity Sales
(f) forecasted data based on preliminary Q4 data from LIMRA

Fixed Annuity Sales

Knowing how to spend your money smartly in retirement can go a long way toward keeping you financially comfortable. However, it's equally important to have a steady stream of income. Investing in fixed annuities is one option.

As their name implies, fixed annuities allow you to lock in an interest rate that remains constant over long periods. Although they offer investors less room for growth, they remain attractive because they involve minimal risk.

MoneyGeek's graph presents annuity statistics from 2019 to 2022 for fixed-rate deferred, indexed, deferred income, fixed immediate and structured settlements, all of which are fixed annuity contracts.

Total Fixed Annuity Sales

Sources: Preliminary U.S. Annuity Fourth Quarter 2022 Sales Estimates, Fourth Quarter 2020 U.S. Annuity Sales
(f) forecasted data based on preliminary Q4 data from LIMRA

Since 2022 was a record year for total annuity sales, it's unsurprising that fixed annuity sales also set a record. After dipping by $19.4 billion in 2020, fixed annuity numbers began climbing. From 2020 to 2021, revenue from fixed annuity contracts increased by $9.2 billion. However, figures grew by a whopping 60.57% ($78.4 billion) from 2021 to 2022. That's almost 49% higher than pre-pandemic numbers in 2019.

Among the various fixed annuity contracts, everything saw a decrease in sales in 2020 except fixed-rate deferred, which grew by almost 10%. In 2021, fixed-rate deferred and indexed contract sales began rising — by 1.92% and 14.77%, respectively — but we don't see this trend with the remaining contract types.

2022 saw an increase across the board and was a record year for fixed-rate deferred and fixed-indexed annuities. The former more than doubled from the previous year — an increase of 111%, to be exact.

Variable Annuity Sales

There are various ways to ensure you have a source of income when you retire. Making strategic withdrawals from your 401k or Roth IRA is an option, but it isn't the only one. Investing in variable annuities is another — you'll have more freedom to choose among investment options. However, a variable annuity contract's value fluctuates depending on current market conditions, differentiating it from fixed annuities.

MoneyGeek provides data on several variable annuity contracts over the years. These include traditional variable and registered indexed-linked annuities.

Total Variable Annuity Sales

Sources: Preliminary U.S. Annuity Fourth Quarter 2022 Sales Estimates, Fourth Quarter 2020 U.S. Annuity Sales
(f) forecasted data based on preliminary Q4 data from LIMRA

Even with total annuity sales reaching record-breaking figures in 2022, revenue from variable annuity contracts decreased by 18% from the previous year. You'll also notice a difference in sales patterns between the two types of variable annuity contracts.

Despite having a smaller revenue share, registered index-linked annuities (RILA) have been on an upward trend since 2019. Their most significant jump was in 2021, from $24.1 billion in sales to $38.7 billion — a 61% increase. Numbers continued to grow in 2022, and although it was only a 5.68% climb, it resulted in the highest sales for RILA to date at $40.9 billion.

Traditional variable annuities paint a different picture. Despite a 16% increase from 2020 to 2021, sales reduced by almost 29% the following year. LIMRA attributes the decline to economic conditions and competitive pressures. Since variable annuity contract values are subject to market fluctuations, investors may prefer fixed annuities that guarantee a return.

Annuity Sales Channels

There's no shortage of sources where you can purchase annuities. However, annuities statistics show that individuals prefer some channels over others. The pie chart below details where you can procure an annuity contract and which have the most market share in 2021.

Annuity Sales by Distribution Channel

Among the various sales channels available to buyers, the Insurance Information Institute found that 27% of all annuity contracts in 2021 were from independent broker-dealers. Besides working on your behalf to buy and sell securities, they can also offer financial advice, making them an attractive option for buyers who may not be comfortable handling their portfolios independently.

Independent agents are the second most-preferred channel, with 19% of the market. They represent insurance agencies rather than the policyholder. Banks and career agents share an equal share of the pie, with 17% each, while full-service national broker-dealers contribute 14%. Direct response sales only account for 4% of the market share.

Top-Performing US Annuity Companies

You can’t study facts about annuities without looking at the various companies offering them. There is no lack of insurers carrying annuities as part of their roster of financial products. MoneyGeek listed the top-performing companies in the U.S. as of Q3 of 2022.

Top Annuity Companies Q3 2022 (in Thousands USD)
Company
Total
Company
Fixed
Company
Variable

New York Life

$16,014,669

Jackson National Life

$11,532,499

Athene Annuity & Life

$12,255,103

Corebridge Financial

$14,840,795

Equitable Financial

$11,514,712

New York Life

$12,221,200

Athene Annuity & Life

$12,932,915

Lincoln Financial Group

$6,773,188

Massachusetts Mutual Life

$11,399,655

Massachusetts Mutual Life

$12,309,508

TIAA

$5,675,819

Corebridge Financial

$10,430,629

Jackson National Life

$11,752,120

Brighthouse Financial

$5,501,593

Global Atlantic Financial Group

$6,998,904

Equitable Financial

$11,552,178

Allianz Life of North America

$4,549,656

Western Southern Group

$6,457,732

Allianz Life of North America

$10,719,542

Corebridge Financial

$4,410,166

Allianz Life of North America

$6,169,886

Lincoln Financial Group

$8,839,760

Nationwide

$4,192,700

Fidelity & Guaranty Life

$5,852,988

Pacific Life

$8,171,169

Prudential Annuities

$4,175,265

Sammons Financial Companies

$5,504,480

Brighthouse Financial

$7,843,775

New York Life

$3,793,469

Pacific Life

$5,390,161

Nationwide

$7,307,700

RiverSource Life Insurance

$3,111,878

USAA Life

$4,668,777

Global Atlantic Financial Group

$7,041,632

Pacific Life

$2,781,008

Symetra Financial

$3,995,999

Western Southern Group

$6,502,575

Thrivent Financial for Lutherans

$1,705,677

Nationwide

$3,115,000

Fidelity & Guaranty Life

$5,852,988

CMFG Life Insurance Company

$1,024,787

American Equity Investment Life

$2,426,504

Sammons Financial Companies

$5,752,145

Fidelity Investments Life

$992,630

Security Benefit Life

$2,426,108

TIAA

$5,675,819

Massachusetts Mutual Life

$909,853

Brighthouse Financial

$2,342,182

USAA Life

$4,668,777

Northwestern Mutual Life

$705,111

Lincoln Financial Group

$2,066,571

Prudential Annuities

$4,579,869

Athene Annuity & Life

$677,813

Delaware Life

$1,954,771

Symetra Financial

$4,570,348

Protective Life

$583,032

Reliance Standard Life

$1,522,514

RiverSource Life Insurance

$3,168,108

Symetra Financial

$574,348

EquiTrust Life

$1,445,261

Annuities Statistics FAQ

There's no lack of facts about annuities, but you can quickly become overwhelmed, especially if you're unfamiliar. Here are some questions buyers typically ask. These can shed some light on the annuities market in the U.S. and explain why they're a popular option for retirement.

Expert Insights on Annuities Statistics

MoneyGeek reached out to experts and asked them to share their thoughts about annuity sales in 2022. These financial professionals shared their insights regarding possible causes for the increase. Their responses may help you determine which type of annuity is best for you.

  1. What factors contributed to the significant increase in annuity sales in 2022?
  2. What factors should you consider to determine whether fixed or variable annuities are better for you?
  3. Can the annuity payout be adjusted over time to keep up with inflation or changes in my financial needs?
Colby McFadden
Colby McFadden

Founder and CEO of Quiver Financial

Asa Lakeman
Asa Lakeman

Founder and Certified Financial Planner at Lakeman Financial

Related Content

Most people purchase annuities later in life, making them essential to retirement planning. However, retirement is a broad concept, and there are other areas to consider. Here are other online sources that may help you increase your level of retirement readiness.

About Angelique Cruz


Angelique Cruz headshot

Angelique Cruz has been researching personal finance for three years, with expertise in macroeconomics, financial statistics and behavioral finance. After a decade-long stint as a management consultant creating professional and personal development programs, she now specializes in writing informative content around personal, auto and home loans. Angelique has a degree in psychology from the Ateneo de Manila University.


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