Question 1

How much were the total annuities sales in 2022?

Accepted Answer

Annuity sales in the U.S. have been increasing steadily since 2020. It increased by $36 billion from 2020 to 2021. However, 2022 saw a record-breaking figure amounting to $311 billion — a 22% increase from the previous year.

Question 2

What is the difference between fixed and variable annuities?

Accepted Answer

Fixed annuities allow you to lock in an interest rate that remains constant over time, making it less vulnerable to the fluctuations of market conditions.

Variable annuities allow for more growth potential since you diversify your portfolio and put your funds in different investment options. However, they’re susceptible to market conditions, and your contract's value may fluctuate due to the economic environment.

Question 3

How have sales for fixed annuities changed since 2019?

Accepted Answer

Annuity sales dropped in 2020, and most fixed annuity contracts followed that trend. The sole exception was fixed-rate deferred, which increased by 9.68%.

Sales across all fixed annuities began increasing after 2020. By 2022, sales totaled $208.1 billion — 60% higher than the previous year.

Question 4

How much were sales for variable annuities in 2022?

Accepted Answer

2022 variable annuity sales reached $103 billion, lower than 2021 figures by almost $23 billion. There are two kinds of contracts — traditional and registered indexed-linked.

Traditional variable contracts, which have a larger market share, decreased by almost 29% that year. However, 2022 was a record-breaking year for RILA sales, amounting to $40.9 billion.

Question 5

Where do most people purchase annuities?

Accepted Answer

Independent broker-dealers were the preferred sales channel in 2021, accounting for 27% of the market. Second were independent agents, with 19%.

The direct response channel was the least preferred, with only 4%.

US Annuities by the Numbers: A Market Overview

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