04.29.26

A New Opportunity for Advisors: Younger Indexed Annuity Buyers

by: Anna Baluch

Younger investors, particularly millennials and Gen Xers, are increasingly embracing indexed annuities as part of long-term financial planning rather than just retirement income products. Nationwide's latest Advisor Authority study found that 63% of millennials and 54% of Gen X respondents are more likely to allocate part of their portfolios to annuities or guaranteed income solutions. Advisors say fixed indexed annuities now appeal to younger buyers because they offer market-linked growth potential with principal protection, making them attractive alternatives to traditional bonds or volatile equity investments. Distrust of financial markets following the Great Recession, uncertainty about Social Security and declining pension availability have also increased interest in alternative retirement tools. Industry experts noted that modern annuity products now offer shorter surrender periods and greater liquidity flexibility, addressing earlier concerns about locked-up assets.

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