Americans Over 55 Are Quietly Making This Financial Move Before the End of 2026 and Advisors Are Paying Attention
Retirement planning has been getting more attention nationwide as higher interest rates and upcoming tax changes keep older savers focused on income and timing. One move drawing notice now is the growing use of annuities by Americans over 55, a shift reflected in new industry sales data and advisor commentary heading into the end of 2026.
LIMRA says annuity sales stayed near record levels in early 2025
LIMRA reported on Feb. 20, 2025, that total U.S. annuity sales reached $105.4 billion in the first quarter of 2025, marking one of the strongest openings the market has posted after consecutive record years in 2023 and 2024. The trade group said registered index-linked annuities, often called RILAs, hit $17.5 billion in quarterly sales, while fixed-rate deferred annuities remained a major category for savers seeking predictable returns.
That broad sales growth matters because older households remain the core annuity market, according to LIMRA and insurer earnings calls from firms including Equitable and Jackson Financial in 2025. Advisors said much of the demand is coming from people in their late 50s, 60s, and early 70s who want protected income before required minimum distribution rules and tax planning decisions become more pressing by the end of 2026.
The impact is national, but exact age-by-state figures are not public
The shift is being felt across the country because annuities are sold nationally through insurers, banks, and broker-dealers, but a full public breakdown by state and by age 55-plus has not been released. LIMRA publishes national category totals, and insurers discuss broad buyer trends, yet neither source has provided a comprehensive list showing which states account for the biggest share of recent purchases by older Americans.
What is confirmed is that retirement-heavy states such as Florida, Arizona, and Texas continue to be important annuity markets because they have large populations age 55 and older, according to U.S. Census population estimates and insurer distribution disclosures. Advisors in those states have been discussing laddering strategies, partial IRA rollovers, and guaranteed income contracts, though firm-by-firm client numbers are generally not made public.
Higher yields, tax timing, and income planning are driving the move
Advisors and insurers have tied the recent shift to three concrete factors in 2025. First, higher interest rates allowed insurers to offer more competitive fixed annuity crediting rates than they could in 2021, according to LIMRA and multiple carrier product filings. Second, the scheduled sunset of several Tax Cuts and Jobs Act provisions after 2025 has pushed more pre-retirees to review IRA withdrawals, Roth conversions, and future tax brackets before the end of 2026, according to CFP professionals and tax planners interviewed by national finance outlets this year.
For consumers, that does not mean everyone over 55 is buying the same product or moving all savings at once. Advisors said the common pattern in 2025 is partial repositioning, where a share of 401(k) or IRA assets is moved into fixed annuities or RILAs to cover baseline income needs. LIMRA said demand remains strongest where buyers want principal protection, income guarantees, or a buffer against market swings, and insurers have indicated those planning themes are likely to remain in focus through 2026.
