Financial professionals can help tomorrow’s retirees achieve financial security

Over the past several years, there has been a great deal of attention focused on the huge number of baby boomers retiring. More than 11,200 Americans are turning 65 each day — equating to over 4.1 million a year. LIMRA research shows a majority of retired investors with at least $100,000 in investible assets have access to a pension, providing a guaranteed lifetime income stream. For those approaching retirement, the landscape is quite different.

According to LIMRA studies, only 40% of preretiree investors (workers aged 50-75 who plan to retire within 10 years) have access to a pension, which means many more will have to rely primarily on their personal retirement savings to fund their retirement. LIMRA finds less than half of these preretirees (46%) believe they will be able to cover basic living expenses in retirement with their guaranteed income sources, compared with 67% of current retirees. This is one of the factors that has led to greater interest in annuities. In fact, nearly half of preretirees (49%) said they would consider buying an annuity, yet only 1 in 5 reports currently owning one.

Annuity product enhancements attract new customers

Carriers have expanded their annuity portfolio to help financial professionals address their clients’ unique risk profiles. Rising interest rates have enabled carriers to offer better participation and cap rates, making annuity products more attractive. LIMRA annuity sales studies show the annuity products that are driving market growth are addressing the risks that clients are most worried about — market volatility, inflation and running out of money in retirement. 

Sales of fixed-rate deferred annuities, which offer investment protection with guaranteed growth, tripled from $52 billion in 2020 to $153 billion in 2024. Sales of registered index-linked annuities and fixed indexed annuities, which offer different levels of principal protection with the opportunity to enjoy market gains, more than doubled during the same period. 

While economic conditions — increased market volatility and rising interest rates — have propelled the remarkable growth in annuity sales over the past few years, the role of the financial professional should not be underestimated. Recent Alliance for Lifetime Income by LIMRA data show three-quarters of investors who receive an annuity recommendation from their financial professionals will go on to buy an annuity.

Today’s broader annuity product offerings and recent economic shifts have prompted financial professionals to alter how they advise their clients. Two-thirds (65%) of financial professionals say they have changed their retirement investment advice to respond to client concerns about market volatility, inflation and rising interest rates. Half say they are putting more client investments into annuities, and this ranks as the most popular change in investment strategy. 

Industry education efforts continue 

The industry has made progress raising awareness about the value of annuities with both consumers and advisors. According to our research, consumer awareness and understanding of annuities has increased from 36% in 2020 to 44% in 2024. Advisors’ favorable view of annuities has jumped more than 20 percentage points since 2021.  

The impact of that advice is clear. Close to half (48%) of investors who are working with an advisor say they are interested in an annuity, compared with just over a third (38%) of investors who are going it alone. This also shows up in consumers’ confidence in their retirement income strategy. In 2025, 45% of investors surveyed said they are confident in their overall retirement income plan, but 70% of those who are working with a financial professional felt the same.

Over the last 15 years, LIMRA research shows consumers’ top concern has been achieving financial security in retirement. In 2025 with the acquisition of the Alliance for Lifetime Income, LIMRA expanded its mission to engage and educate both consumers and advisors about the valuable role that annuities can play in providing the financial security consumers seek. We believe these efforts will help a greater number of current and future retirees attain the retirement lifestyle they desire.

Bryan Hodgens is head of LIMRA research. Contact him at bryan.hodgens@innfeedback.com.