U.S. annuity sales reached $228.7 billion in the first half of 2026, a new first-half record, according to LIMRA’s final second-quarter data. The second quarter alone brought in $121.2 billion, the eleventh straight quarter above $100 billion. A wave of Americans turning 65 and a choppy market are doing most of the work.

If you have been wondering why annuities keep showing up in the financial news, this is why. Below I break down what actually happened, what it means for someone weighing this decision, and where the risks still sit.

How big were annuity sales in 2026?

Total U.S. annuity sales rose 2 percent year over year to $121.2 billion in the second quarter, InvestmentNews reported from LIMRA’s final figures. That pushed first-half sales to a record $228.7 billion.

One detail worth knowing: LIMRA’s early estimate in July had put the quarter at $123.9 billion. The final number came in $2.7 billion lower, mostly because fixed-rate deferred sales were softer than first reported, according to PlanAdviser’s coverage of the revision.

Which annuity products grew the fastest?

The clearest story in the data is registered index-linked annuities, often called RILAs or buffered annuities. RILA sales set a quarterly record of $23.3 billion, up more than 20 percent from a year earlier. For the first half, RILA sales totaled $44.4 billion, 21 percent ahead of 2025.

Traditional variable annuities also jumped, up 24 percent year over year to $17.7 billion. Income annuities set records too, with single premium immediate annuities (SPIAs) at $4.1 billion and deferred income annuities at $1.3 billion.

Not every category grew. Fixed-rate deferred annuities, which include MYGAs, came in at $41.8 billion, down 9 percent from a very strong second quarter of 2025. Fixed indexed annuities were down 7 percent to $30.6 billion, though both are still selling in enormous volume.

The RILA and variable annuity numbers tell a specific story. With markets swinging in 2026, more buyers wanted some stock market upside without full exposure to the downside, which is the whole design premise of a buffered annuity. If you are exploring that tradeoff, it is worth comparing fixed index annuity rates against a RILA’s buffer and cap before deciding which fits your risk tolerance.

Why is “Peak 65” showing up in every annuity headline?

The other force behind this demand is demographics. More than 4.1 million Americans are turning 65 each year through 2027, over 11,200 people a day, according to LIMRA’s Peak 65 research. LIMRA calls it the largest surge of Americans reaching retirement age in U.S. history.

This matters because most of this generation does not have a traditional pension. Unlike many of their parents, most Peak 65 retirees are relying on savings and Social Security to cover what could be decades of retirement. That concern about outliving savings is a big reason guaranteed income products are getting more attention.

Social Security adds to the conversation. Current estimates put the 2027 cost-of-living adjustment at about 3.5 percent to 3.6 percent, the highest in three years, with the official figure due in October, CNBC reported. A raise in that range helps, but it reflects inflation that retirees are already paying for.

Does a record sales year mean you should buy an annuity?

No. Record sales tell you what other people are doing, not what is right for your situation. I have spent more than 20 years in this industry, and the years everyone piles into one type of product are usually the years it pays to slow down and ask basic questions first.

Start with liquidity. Most deferred annuities carry surrender charges for a set number of years, so money you might need for an emergency or a big expense does not belong in one. Ask how the product holds up against inflation, since a fixed payout that looks generous today can lose purchasing power over a long retirement.

And understand exactly what you are giving up in exchange for protection. Every buffer, cap, or guarantee is priced into the contract somewhere.

None of that means annuities are a bad idea. It means the decision should be driven by your own timeline, your other income sources, and how much of your money needs protection versus growth. If a fixed product fits, you can compare current MYGA rates as a starting point.

What should someone nearing retirement do next?

If you are within a few years of retirement and these headlines caught your attention, treat them as a prompt to review your own numbers rather than a signal to act. Start with the guaranteed income you already have coming from Social Security and any pension.

Then figure out the gap between that and your expected expenses. A licensed insurance producer can walk you through how different annuity types, fixed, indexed, or income-focused, might fill that gap, along with the surrender periods and guarantees behind each one. My Annuity Store works with 90+ top annuity companies, so you can compare options side by side instead of hearing one carrier’s pitch in isolation.

Frequently Asked Questions

Why are annuity sales so high in 2026?

Market volatility, higher interest rates, and global uncertainty pushed buyers toward products that offer downside protection or guaranteed income. A record number of Americans turning 65 is adding to that demand.

What is a RILA or buffered annuity?

A registered index-linked annuity ties returns to a market index but limits losses to a set buffer, usually in exchange for a cap on gains. RILA sales set a quarterly record of $23.3 billion in the second quarter of 2026.

What is “Peak 65” and why does it matter for annuities?

Peak 65 is the wave of more than 4.1 million Americans turning 65 each year through 2027. Because most of this group lacks a traditional pension, many are looking for ways to create guaranteed retirement income.

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