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2025 Market & Policy Trends (Part 5)

Published Sun Apr 13 2025

1 min read

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Written byAnnuityRatesHQ Editorial Team

Staff

Annuity Blog Series - 2025 Market & Policy Trends (part 5)

The 'Peak 65' Moment:

How a Record Wave of Retirees Is Reshaping Annuity Demand

In 2025, over 4.2 million Americans will turn 65, the highest number ever recorded. This "Peak 65" milestone is transforming retirement planning and fueling demand for modern annuity products.

What Is 'Peak 65'?

It marks the peak of Baby Boomers reaching retirement age. This generation is wealthier, lives longer, and seeks more flexible financial tools than their predecessors.

Why Annuities Are Back in the Spotlight.

Retirees want guaranteed income without sacrificing liquidity or legacy goals. Carriers are responding with flexible, modern annuity options that address today’s retirement risks.

Key Trends Driving Annuity Sales in 2025

  1. Income Certainty – Boomers seek predictable, lifelong income through annuities with income riders.

  2. Delayed Retirement – Many are working part-time, using deferred annuities to plan for future income.

  3. Customization – Modern products offer inflation protection, joint payouts, and legacy features.

Case Study

Carlos (65) and Linda (63) invest $300K in a fixed indexed annuity with a 5-year deferral, securing $22K/year for life while allowing the rest of their portfolio to grow.

Carrier & Advisor Challenges

Advisors must simplify complex products and align annuity types with retirement timelines. Carriers are rapidly innovating to meet rising expectations.

What Advisors Should Do

  • Segment clients by income start date

  • Tailor education on inflation, taxes, and healthcare

  • Blend annuities with trusts, Roth conversions, and investments

Internal Links Guidance

Peak 65 is a unique opportunity to modernize retirement planning with smarter, tailored annuity solutions.

Next in this series: How California's new 'best interest' rule could reshape annuity sales practices.

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