The U.S. annuity market has quietly cemented a new normal: ten consecutive quarters with sales exceeding $100 billion. According to preliminary data from LIMRA's U.S. Individual Annuity Sales Survey, total sales reached $104.6 billion in the first quarter of 2026. Although that represents a 2% decline from the same period a year earlier, the streak underscores a structural shift in how Americans approach retirement income.
LIMRA's survey, covering roughly 87% of the domestic annuity market, indicates that demand for protected income is no longer tied solely to interest rate cycles. Bryan Hodgens, senior vice president and head of LIMRA research, noted that the $100 billion threshold now appears stable, reflecting sustained interest in principal protection and guaranteed income. He added that consumer concerns about economic uncertainty and market volatility—which hit a one-year high in Q1—fueled demand for registered index-linked annuities (RILAs) and income annuities.
RILAs Race Ahead
The standout performer was the registered index-linked annuity, which posted its second-best quarterly sales ever. RILA sales jumped 21% year over year to $21.2 billion, extending a streak of year-over-year growth to 30 consecutive quarters. Keith Golembiewski, assistant vice president and head of LIMRA Annuity Research, attributed the momentum to product innovation, expanding carrier participation, and broader distribution. He noted that as more pre-retirees seek guaranteed future income, RILAs offer an attractive blend of upside participation and downside protection.
RILA's ascent appears to be cannibalizing fixed index annuities (FIAs). FIA sales slipped 4% year over year to $26.6 billion in Q1. Golembiewski said the decline reflects a shift in carrier and distributor focus toward RILAs, which typically offer higher upside participation—a key advantage in a stock market that has repeatedly hit new highs over the past year.
Income Annuities Hold Firm
Income annuities continued to benefit from a relatively stable interest rate environment, with the Federal Reserve maintaining its hold on rates. Single premium immediate annuity (SPIA) sales rose 22% to $3.7 billion, while deferred income annuity (DIA) sales increased 6% to $1 billion. These figures align with findings from InspereX's spring 2026 pulse survey, where 59% of financial professionals said clients seeking income prioritize stable, predictable cash flow. Only 13% cited principal preservation and 12% the highest yield possible.
Advisor behavior reflects that preference. In the same survey, 54% of advisors said they plan to moderately or significantly increase their use of protection-oriented strategies in client portfolios for the remainder of the year. Just 19% indicated no changes.
Structured Products and Annuities Converge
The InspereX data also highlights the convergence of annuities with structured products. 88% of respondents already use structured products, and they rank as the top asset class advisors plan to add for income generation, followed by dividend-paying stocks and indexed annuities. Advisors cited multiple reasons for employing protection strategies: 71% to provide peace of mind, 67% to reduce or eliminate client risk exposure, and 64% to deliver growth alongside protection. When introduced during volatile markets, 39% of advisors reported that assets that would have moved to cash instead remained invested.
Chris Mee, managing director and head of WMS Wholesale Distribution at InspereX, noted that market volatility once fueled anxiety between advisors and clients. Today's expanded toolkit, he said, helps advisors position portfolios to endure uncertainty, keeping clients more confident and calmer.
Fixed-Rate Products Lose Ground
Not all annuity categories benefited. Total fixed-rate deferred annuity (FRD) sales fell 16% to $34 billion in Q1, as clients pivoted toward products with more equity-linked upside. Despite the decline, FRDs still represented roughly a third of the total annuity market, maintaining their position as the largest product category by volume. Meanwhile, traditional variable annuities bucked the trend, rising 9% year over year to $16.1 billion—the third consecutive quarter of growth—suggesting some clients remain willing to accept full market exposure in exchange for upside potential.
For advisors navigating this landscape, the data reinforces the importance of tailoring income strategies to client preferences for certainty over yield. As annuity sales reach a record as advisor adoption climbs, the trend toward protection-oriented solutions appears entrenched. Meanwhile, broader market dynamics, such as April CPI rising 0.6% and the annual rate hitting 3.8%, may further influence client demand for guaranteed income products.
