Credit: James Steidl/Thinkstock
Sales of individual annuities without firm, built-in value guarantees increased in the United States in 2025.
Jason Bickler, co-head of individual markets at Global Atlantic, a major annuity issuer, predicted in a recent email interview that the annuity sales winds will shift a bit toward safety in 2026.
"Two words define the year ahead: income and protection," Bickler said.
"After a decade of chasing market gains, investors are shifting toward safeguarding what they've built, and today's rate environment makes guaranteed income more compelling than it's been in years," he said. "We expect a surge in innovative income products."
A fixed indexed annuity ties the contract crediting rate to the performance of investment indexes. An FIA contract also protects an annuity owner who holds a contract to maturity against investment-index-related loss of value.
A registered indexed-linked annuity, or RILA, ties the crediting rate to the performance of investment indexes.
Even a RILA owner who holds a contract to maturity can face an investment-index-related loss of value, but a RILA owner can earn a higher rate of return than the owner of a comparable fixed indexed annuity. A RILA owner can usually pay the issuer for protection against loss of value.
Although a RILA may expose a retirement saver to somewhat more risk than an FIA contract does, Bickler thinks investors' interest in guarantees will help RILA sales.
In 2026, RILAs will " stay in the spotlight as a compelling accumulation complement to FIA income," Bickler said.
"We also anticipate a push for simplicity and transparency," Bickler added. "People want products they can understand and trust, and that need for clarity may be one of the defining competitive edges in 2026.
Credit: James Steidl/Thinkstock
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