Why Annuity Sales Are Breaking Records in 2026

U.S. annuity sales hit a new quarterly record of $123.9 billion in the second quarter of 2026, according to LIMRA — the industry's leading research group. That's not a typo. It's the eleventh straight quarter above $100 billion, and the pace shows no sign of slowing.

So what's going on? Why are so many people — including a lot of folks near or already in retirement — moving money into annuities right now? And more importantly: does any of this apply to your situation?

That's what this post is about. No hype, no pressure — just a plain-spoken look at what's driving this trend and what it might mean for you.

What's Behind the Record Numbers?

A few things are happening at once, and they're reinforcing each other.

Market uncertainty. Between geopolitical tensions, Federal Reserve rate decisions, and ongoing market swings, a lot of near-retirees are asking themselves a simple question: What happens if the market drops 20% the year I retire? That question doesn't have a comfortable answer if all your money is in stocks or mutual funds. Annuities — particularly fixed indexed annuities — offer a way to participate in market gains without exposing your principal to market losses.

Money in motion. A wave of CDs and bonds from 2022–2023 are maturing right now. Many people locked in rates when they were high, and now those contracts are coming due. Some of that money is rolling into annuities, especially since annuity rates remain historically attractive compared to where they were five or ten years ago.

Demographics. The Baby Boom generation isn't just retiring — it's retiring in numbers we've never seen before. More people are crossing the finish line every day, and guaranteed income has a way of looking a lot more appealing once you're actually in retirement than it did at 45.

What Is Principal Protection — and Why Does It Matter?

One of the core features driving annuity interest right now is principal protection. It sounds simple, but it's worth understanding clearly.

With a fixed indexed annuity (FIA), your money is tied to the performance of a market index — like the S&P 500 — but you don't actually invest in the market directly. When the index goes up, you earn a portion of that gain. When the index goes down, your principal is protected by the insurance company. You don't lose what you put in.

For someone who's 60 or 65 and thinking about the next 20 years, that's not a small thing. If you're still 100% in the stock market and a downturn hits in year one or two of retirement, you may be forced to sell assets at a loss just to cover living expenses. That's called sequence of returns risk, and it can permanently derail a retirement plan that looked fine on paper.

An FIA doesn't eliminate all risk — there are trade-offs, including caps on upside participation and surrender periods to understand — but for the right person, it can serve as a foundation of stability while other assets continue to grow.

Who Does This Actually Make Sense For?

Annuities aren't for everyone. There are situations where they're clearly the right fit, and situations where they're not. Here's an honest breakdown.

A good fit if you:

• Are within 5–10 years of retirement or already retired
• Have money sitting in CDs, bonds, or savings that you won't need for several years
• Want a portion of your retirement income to be guaranteed, regardless of what the market does
• Are worried about outliving your money

Probably not the right tool if you:

• Need access to the funds in the near term (annuities have surrender periods)
• Are young and have decades of time to ride out market volatility
• Already have substantial guaranteed income from pensions or Social Security that covers your basic needs

The honest answer is: it depends on your full picture. How much do you have? What are your income needs? What's already guaranteed? A good annuity conversation starts with those questions, not a product pitch.

One More Thing Worth Knowing: Income Riders

Beyond principal protection, many FIAs offer optional income riders — features that guarantee a lifetime income stream, similar to a pension, that you can turn on at retirement. These can be powerful for people who don't have a pension and are trying to create their own guaranteed paycheck.

For example, some products guarantee that your "income base" grows at a fixed rate each year during the accumulation phase — even if the market is flat — and then convert to a guaranteed monthly payment you can never outlive. That's worth understanding before you make any decisions, because not all annuities work the same way.

The specific products available in Texas and Oklahoma vary, and rates change regularly. What made sense six months ago might look different today, and vice versa.

Want to See How This Applies to Your Situation?

If you're in or near retirement and you're wondering whether an annuity deserves a place in your plan, the best next step is a simple conversation. No obligation, no pressure — just a look at your numbers and a straight answer about whether this is even worth exploring.

Book a free 30-minute call at retire360.app/book. We'll look at where you are, what you need, and whether a fixed indexed annuity or another guaranteed income strategy actually fits — or doesn't.