Annuity Market Report 2026

The annuity market size has grown strongly in recent years. It will grow from $6.45 billion in 2025 to $6.85 billion in 2026 at a compound annual growth rate (CAGR) of 6.1%. The growth in the historic period can be attributed to increasing life expectancy rates, growing retirement population, rising awareness of guaranteed income products, expansion of insurance advisory services, availability of diversified annuity structures.

The annuity market size is expected to see strong growth in the next few years. It will grow to $8.59 billion in 2030 at a compound annual growth rate (CAGR) of 5.8%. The growth in the forecast period can be attributed to increasing demand for personalized retirement solutions, rising adoption of digitally enabled annuity platforms, expansion of retirement planning fintech tools, growing focus on inflation-protected income products, increasing regulatory support for retirement savings. Major trends in the forecast period include increasing adoption of digital annuity distribution platforms, rising demand for retirement income planning solutions, growing integration of data analytics in product structuring, expansion of hybrid and indexed annuity products, enhanced focus on long-term financial security.

The rising demand for insurance is expected to support the growth of the annuity market in the coming years. Demand for insurance remains strong due to greater awareness of financial protection, increasing uncertainties, and the need to safeguard against risks related to health, life, property, and business disruptions. Annuities play a key role within insurance by providing policyholders with a guaranteed income stream, typically during retirement, thereby ensuring long-term financial security. For example, in May 2023, according to Allianz SE, a Germany-based financial services company, the global insurance industry recorded strong growth of 7.5% in 2023, marking its fastest expansion since before the Global Financial Crisis (GFC). Insurers worldwide generated €6.2 trillion ($6.7 trillion) in premiums across multiple segments, including life insurance at €2.62 trillion ($2,835 billion), property and casualty insurance at €2.15 trillion ($2,329 billion), and health insurance at €1.42 trillion ($1,545 billion). Therefore, the rising demand for insurance is driving the growth of the annuity market.

Participants in the annuity market are increasingly focusing on the development of advanced offerings, such as long-term, tax-deferred retirement products, to strengthen their competitive position. Long-term tax-deferred retirement products are financial instruments designed to help individuals save and invest for retirement while postponing taxes on investment growth until withdrawals begin. These products are structured to accumulate funds over extended periods, allowing for compounded growth without immediate tax liabilities. For instance, in May 2024, the Guardian Life Insurance Company of America, a US-based insurance provider, launched Guardian MarketPerform, a Registered Index-Linked Annuity (RILA), aimed at improving retirement planning outcomes. The product is designed to balance growth potential with protection against market risks, addressing increasing concerns surrounding retirement savings.

In May 2024, Brookfield Reinsurance, a Bermuda-based insurance company, acquired American Equity Investment Life Holding Company (AEL) for $4.3 billion. Through this acquisition, AEL’s established fixed annuity business strengthens Brookfield Reinsurance’s expanding insurance asset base. American Equity Investment Life Holding Company (AEL) is a US-based insurer engaged in the development and distribution of annuity and life insurance products through its subsidiaries.

Major companies operating in the annuity market are New York Life Insurance Company, TIAA-CREF Life Insurance Company, Massachusetts Mutual Life Insurance Company, USAA Life Insurance Company, Lincoln National Life Insurance Company, Pacific Life Insurance Company, Jackson National Life Insurance Company, Athene Annuity and Life Company, Brighthouse Financial Inc., Western & Southern Life Assurance Company, F&G Annuities & Life Inc., Allianz Life Insurance Company of North America, ICICI Prudential Life Insurance Company Limited, Ameritas Life Insurance Corporation of New York, American National Insurance Company, Global Atlantic Financial Group, Atlantic Coast Life Insurance Company, Securian Life Insurance Company, OneAmerica Financial Partners Inc., CL Life and Annuity Insurance Company, Clear Spring Life and Annuity Company, Nationwide Mutual Insurance Company.

North America was the largest region in the annuity market in 2025. The regions covered in the annuity market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the annuity market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The annuity market includes revenues earned by entities by providing services such as claims processing, payment management, investment management, and consultation and planning. The market value includes the value of related goods sold by the service provider or included within the service offering. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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