01.08.25

LIMRA Says Fixed Annuity Sales Will Fall and VA Sales Rise in 2025

by: Ben Mattlin

Contrary to recent trends, LIMRA is predicting a decline in fixed annuity sales and an increase in variable annuity (VA) sales in 2025. At a webinar about the group’s forecasts, LIMRA Senior Vice President and head of life and annuities John Carroll said fixed annuity sales typically track changes in interest rates. As interest rates started coming down in 2024, he added, sales already started declining. LIMRA projects that the Federal Reserve will cut interest rates by another 50 basis points in 2025, said Bryan Hodgens, senior vice president and head of LIMRA research. Consequently, he expects fixed annuity sales to drop 6-15% in 2025, depending on the type of fixed annuity.

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