The U.S. annuity market has grown significantly, and that momentum is bound to continue into 2026. Record-breaking annuity sales over the past several years reflect a growing demand for safety and guaranteed income driven by market volatility, demographic shifts, and heightened awareness of retirement income gaps.
“With the U.S. entering its second consecutive year of “Peak 65,” the size of the market and urgency for appropriate retirement solutions will only intensify,” said Jeff Gill, Americas Insurance Leader at EY.
In addition, as markets hover near record highs, many consumers are seeking downside protection from equity exposure. “In 2026, we expect individuals will continue to look for ways to protect their money from market risk, while trying to grow their assets to offset longevity risk,” said Keith Namiot, Head of Annuities at Guardian.
In 2026, annuity innovation will continue to accelerate, shaped by the convergence of insurance, asset management, and wealth solutions. To succeed, providers will need to focus their efforts on smarter design, broader access, and seamless experiences.
We expect the continued growth of indexed-based annuities—particularly Registered Index-Linked Annuities. These products are an attractive alternative to traditional variable annuities as they offer both opportunity and adaptability to market conditions.
With America’s aging population, the long-term care conversation has never been more critical. Asset-based LTC solutions are gaining traction, even though there are relatively few providers—creating a significant opportunity for growth.
Although they haven’t gained much traction in the past, Contingent Deferred Annuities with newer designs have the potential to meet evolving consumer needs in 2026. “These hybrid offerings are designed to be modular, customizable, and distributed across multiple channels,” explained Gill.