A strong economy and retiring baby boomers pushed U.S. individual annuity sales to $115 billion in the third quarter, up 29% from the total for the third quarter of 2023, according to new LIMRA market survey data.
The weakest results were for traditional variable annuities. Their sales grew just 14%, year-over-year.
Sales of the best-performing products, fixed indexed annuities, climbed 54%.
What it means: Some advisors are still skeptical about the costs and benefits of annuities, but retirement savers don't seem to be paying much attention to those advisors.
Over the past several years, "our research showed more consumer interest in financial solutions that offer downside protection and upside growth opportunity," a key benefit of FIAs, according to Bryan Hodgens, head of LIMRA research.
Details: Here's what happened to annuity sales for some of the types of products that LIMRA tracks between the third quarter of 2023 and the latest quarter.
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