Income annuities have rebounded to pre-pandemic levels due to rising interest rates. Single premium immediate annuity (SPIA) sales were $2.5 billion in the third quarter, a 58% year-over-year increase. YTD, SPIA sales were $6 billion, 28% higher than the same period last year.
Deferred income annuity (DIA) sales did not fare as well. In the third quarter, DIA sales fell 1% to $505 million. YTD, DIA sales were $1.4 billion, 4% lower than prior year.
Overall, LIMRA is forecasting income annuity sales to grow more than 10% in 2022 with steady growth projected through 2026.