LIMRA Expects U.S. Individual Annuity Sales to Keep Growing
Sales could increase 7.1%, to $286 billion 2023, according to LIMRA's annuity sales trends forecast.
The aging of the U.S. population should help keep U.S. individual annuity sales increasing at least through 2024, according to LIMRA.
The Windsor, Connecticut-based financial services research organization is predicting that sales will increase to at least $267 billion this year, up 4.7% from the 2021 total.
Sales could increase 7.1%, to at least $286 billion 2023, according to LIMRA’s annuity sales trends forecast.
LIMRA says sales should then rise to at least $294 billion in 2024.
LIMRA reports the projected sales figures in terms of ranges of about $20 billion. In 2023, for example, the projected individual annuity sales range is $286 billion to $306 billion.
Many factors could affect sales, but one especially big driver is the aging of the U.S. population. U.S. retirement savers typically buy annuities around the time they reach age 65.
More baby boomers are turning 65, and Todd Giesing, assistant vice president at LIMRA Annuity Research, said the COVID-19 pandemic has increased the number of “retired workers” who continue to look for ways to generate retirement income.
“We saw a massive amount of unemployment in the U.S. due to COVID-19 events, resulting in a portion of Americans near retirement altering their initial plans and retiring earlier than anticipated,” he said.
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