Annuities and the inverted pyramid

When I was a journalism student, one of the first lessons taught was the “inverted pyramid” writing style. It’s a way to structure content so readers get the most important information first.

At its core, the inverted pyramid organizes information from most important to least important. The beginning of the article — the “wide” part of the pyramid — delivers the essential facts right away. The middle of the article provides the supporting details. Finally, the end of the article — the narrow “tip” of the pyramid — contains minor details or extra context.

Unlike literary writing that builds the story toward its climax, the inverted pyramid starts with the conclusion and expands outward. It gives readers the answers they need quickly, allowing them to understand the basics even if they read only the headline and the first paragraph. It also enables editors to shorten articles if needed by trimming the ending. 

Looking at the demographics of the U.S., we see another inverted pyramid, and this one tells a different story.

The U.S. Census Bureau reported in 2025 that older adults outnumber children in 11 states. In addition, the Census Bureau projects that by the mid‑2030s, older adults will outnumber children nationally for the first time in U.S. history.

Meanwhile, the working‑age population continues to grow, but much more slowly than the 65-and-over age cohort. From 2020 to 2024, the working‑age population (ages 18-64) grew only 1.4%, compared with 13% growth among those 65 and older.

But lower birth rates mean the child population continues to shrink. Between 2020 and 2024, the number of children under 18 in the U.S. declined by 1.7% nationally. Children represented 25% of the population in 2004 but only 21.5% in 2024. Census data show fewer children in the 0-11 age range than in older child cohorts, confirming a sustained fertility decline. Projections indicate the child population will continue to decrease at least through the mid-2030s.

In short, we have fewer working-age adults supporting an increasing number of older Americans. And it’s projected to get worse.

But some believe this demographic shift is good news for the industry. Americans must understand that they will be responsible for a longer and more expensive retirement than their parents experienced. That opens the door to a discussion of lifetime income — annuities.

June is Annuity Awareness Month, and it’s the perfect time for us to take stock of where the annuity market is headed. 

Longtime industry observer Joe Jordan believes life insurance and financial services must pay attention inorder to the nation’s changing demographics in order to serve a population in which older generations outnumber younger ones. It’s a topic he discusses in one of the many speeches he gives to industry groups across the U.S.

Jordan said the decline in the number of working-age Americans, combined with the possibility that Social Security could begin decreasing payments to beneficiaries unless Congress acts, puts a spotlight on the annuity industry. You can read more of his insights in this month’s In the Know feature.

In this month’s feature article, Website Editor-in-Chief John Hilton describes how the annuity industry is undergoing rapid change, driven by evolving regulation, advances in technology and artificial intelligence, and ongoing consolidation among distributors and carriers. 

Market competition and the enormous potential of AI are forcing change on companies both big and small. 

Meanwhile, the bottom-line numbers reflect a vibrant industry. The final annual data from LIMRA found that total U.S. retail annuity sales reached a record  $464.1 billion in 2025, representing a 7% year-over-year increase. 

But even as annuity sales reach record levels, the industry faces a critical challenge: expanding beyond existing customers and educating new ones. How  effectively  firms respond to regulatory demands, embrace technology and navigate consolidation will shape the next phase of growth. 

We may not be able to upend the inverted population pyramid in the U.S., but by including guaranteed lifetime income in your clients’ retirement plans, you can make sure their post-employment years won’t be upended.

Susan Rupe is editor in chief, magazine, for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected].