It\u2019s been a quiet few years for variable annuities. Today, however, with interest rates drifting lower, they\u2019re becoming more relevant and more saleable. After a multi-year decline, 2024 VA sales jumped to $60 billion\u2014a 20% year-over-year increase. While RILAs remain the current golden child, this uptick in VA sales is a reminder that these products still have a place\u2014especially for clients looking for long-term income strategies with equity exposure.<\/p>\n\n\n\n
As yields soften, investors are rethinking how they generate retirement income. Fixed annuities and MYGAs lose appeal when locked-in rates don\u2019t keep up with inflation or long-term growth. VAs\u2014particularly those with guaranteed income riders\u2014offer something different: access to upside in equities while still providing income stability in retirement.<\/p>\n\n\n\n
The timing matters. We are already into the \u201cPeak 65\u201d boom, with a record number of Americans hitting retirement age between 2024 and 2027. This generation isn\u2019t just looking for guarantees\u2014they also need growth<\/strong> to sustain long lives and long retirements.<\/p>\n\n\n\n This shift creates a window for IFAs to revisit VAs with both new and existing clients. Recent product improvements\u2014lower fees, fee-based structures, more transparent subaccounts\u2014make it easier to position VAs as a component of a broader retirement plan.<\/p>\n\n\n\n VAs can be particularly attractive to clients who\u2019ve already maxed out tax-deferred options. For those looking to replace a pension, they can serve as a personalized income chassis, with flexibility around timing and withdrawal. In particular, clients who are concerned about outliving their assets may find value in guaranteed lifetime withdrawal benefits (GLWBs), especially those tied to equity performance rather than fixed rates.<\/p>\n\n\n\n Advisors competing with robo platforms or fee-only firms can also use VAs to stand out with outcome-based planning. You\u2019re not just selling a product\u2014you\u2019re delivering protected income that adjusts with life\u2019s curveballs. In a market where many investors are uncertain whether to stick or twist, VAs offer an option a level up from RILAs\u2014growth potential with downside limits and predictable income.<\/strong> A little more risk with the chance of greater reward.<\/p>\n\n\n\n Another opportunity lies in repositioning legacy contracts. Many clients hold older VA products that may not have been reviewed in years. A contract audit could uncover fees that are no longer competitive\u2014or benefits that can be preserved while modernizing the structure. This gives producers a reason to reach out and deepen the relationship, even if there\u2019s no immediate sale.<\/p>\n\n\n\n VAs do come with added complexity, which can make overcoming objections more challenging. What\u2019s changed is the framing. Advisors who lead with \u201chow this helps you retire better\u201d rather than \u201chow this product works\u201d will have more success. Focus on client needs: longevity protection, market participation, predictable income.<\/p>\n\n\n\n Today\u2019s VA landscape is broad, and advisors need to be selective. Some contracts are more transparent than others. Understanding a client\u2019s risk tolerance will be key to making the case.<\/p>\n\n\n\n This isn\u2019t a gold rush just yet, but it is a moment worth noting. With ongoing economic uncertainty, the window may be narrow. But variable annuities are re-entering the conversation for good reason. For the right client, in the right context, they offer something that few other tools can: significant long-term growth potential with built-in income guardrails.<\/p>\n","protected":false},"excerpt":{"rendered":" It\u2019s been a quiet few years for variable annuities. Today, however, with interest rates drifting lower, they\u2019re becoming more relevant and more saleable. After a multi-year decline, 2024 VA sales jumped to $60 billion\u2014a 20% year-over-year increase. While RILAs remain the current golden child, this uptick in VA sales is a reminder that these products… Read More »Variable Annuities Are Back\u2014And They Deserve a Fresh Look<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":227,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","neve_meta_reading_time":"","_ti_tpc_template_sync":false,"_ti_tpc_template_id":"","footnotes":""},"categories":[5],"tags":[34,3,33],"class_list":["post-226","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","tag-annuities","tag-featured","tag-variable-annuities"],"_links":{"self":[{"href":"https:\/\/southwestannuitiesmarketing.com\/news\/index.php\/wp-json\/wp\/v2\/posts\/226","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/southwestannuitiesmarketing.com\/news\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/southwestannuitiesmarketing.com\/news\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/southwestannuitiesmarketing.com\/news\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/southwestannuitiesmarketing.com\/news\/index.php\/wp-json\/wp\/v2\/comments?post=226"}],"version-history":[{"count":1,"href":"https:\/\/southwestannuitiesmarketing.com\/news\/index.php\/wp-json\/wp\/v2\/posts\/226\/revisions"}],"predecessor-version":[{"id":228,"href":"https:\/\/southwestannuitiesmarketing.com\/news\/index.php\/wp-json\/wp\/v2\/posts\/226\/revisions\/228"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/southwestannuitiesmarketing.com\/news\/index.php\/wp-json\/wp\/v2\/media\/227"}],"wp:attachment":[{"href":"https:\/\/southwestannuitiesmarketing.com\/news\/index.php\/wp-json\/wp\/v2\/media?parent=226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/southwestannuitiesmarketing.com\/news\/index.php\/wp-json\/wp\/v2\/categories?post=226"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/southwestannuitiesmarketing.com\/news\/index.php\/wp-json\/wp\/v2\/tags?post=226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}