Annuity Trends

Retirement isn’t what it used to be—and neither are annuities.

With economic shifts, rising interest rates, and new legislation on the table, annuities are seeing a resurgence among retirees who want guaranteed income and principal protection in uncertain times.

So what does 2025 have in store for annuities? And how should smart retirees adjust their plans?

Let’s break it down 👇

📊 Big Picture: Why 2025 Is a Turning Point for Annuities

A few key forces are reshaping how annuities work—and how retirees should think about them:

• Higher interest rates = better annuity payouts. Payouts from fixed annuities and MYGAs (Multi-Year Guaranteed Annuities) are increasing as insurers offer more competitive returns.
• Market volatility is making guarantees more attractive. Retirees are shifting from growth-chasing to income-securing.
• Policy changes may favor annuity use in retirement planning. Updates in SECURE Act 2.0 are making it easier to include annuities in 401(k) rollovers.

💡 Translation: Annuities are no longer just for the ultra-conservative—they’re being re-evaluated as smart income tools.

🔍 1. Trend: Annuities Are Outperforming Bonds for Retirement Income

For years, bonds were the go-to for low-risk retirement income. But with recent bond market instability and rising annuity rates, many retirees are making the switch.

Fixed indexed annuities (FIAs) now offer:

• Market-linked growth without direct market risk
• Upside potential with downside protection
• Optional income riders that guarantee lifetime payments

➡️ Learn more about how annuities stack up: RetirementPAYDAY Annuity Overview

🛠 2. Trend: Customization Is In—One-Size-Fits-All Is Out

Modern annuities are more flexible than ever.

In 2025, retirees can now:

• Choose when and how income starts (immediate vs. deferred annuities)
• Add inflation protection or spousal benefits
• Select beneficiary options for legacy planning

👥 Planning tip: Customization is key. A 62-year-old retiring with a pension will need a different annuity setup than a 70-year-old living off savings.

📉 3. Trend: Market Volatility Is Driving Demand for Guarantees

The stock market rollercoaster of the last few years has made retirees wary.

Enter the RetirementPAYDAY Annuity, designed to:

• Lock in guaranteed income
• Offer principal protection
• Avoid losses during market downturns

Even financially savvy clients are moving part of their portfolio into annuities to create predictable income streams that feel more like a paycheck.

🧠 4. Trend: More Retirees Are Using Annuities for Tax Strategy

Did you know annuities can be a powerful tax-deferral tool?

In 2025, many retirees are:

• Rolling over 401(k) funds into qualified annuities to control RMDs
• Using non-qualified annuities for tax-deferred growth outside of IRAs
• Planning for legacy tax efficiency by leaving annuity benefits to heirs

📚 Pro Tip: Talk to your financial advisor or a licensed annuity agent about QLACs (Qualified Longevity Annuity Contracts) if you’re nearing RMD age.

🧾 5. Trend: Legislation Like SECURE Act 2.0 Is Changing the Rules

The SECURE Act 2.0, fully implemented in 2025, has made it easier for retirees to:

• Buy annuities inside 401(k)s and IRAs
• Delay RMDs (now age 73 or 75)
• Use annuities to create pension-like benefits within their retirement plan

👉 If you’re retiring soon, this is your moment to take control of your income strategy before you’re forced into distributions.

🧓 Real Talk: Should You Rethink Annuities in 2025?

Ask yourself:

• Do I want guaranteed monthly income I can’t outlive?
• Am I worried about another market crash cutting into my savings?
• Am I looking for ways to delay RMDs or improve tax efficiency?
• Do I want peace of mind in retirement—not just account balance growth?

If you answered “yes” to any of these, now’s the time to explore your options.

💡 Bottom Line: Annuities Are Back—Smarter Than Ever

Retirees in 2025 are navigating a new landscape—but with the right annuity strategy, you can lock in income, reduce risk, and retire with more peace of mind.

👉 Curious about how annuities fit into your retirement plan?
Let’s chat: Schedule your free call with a licensed agent at The Policy Shop.