From MYGAs to Indexed Evolution: Why the Smart Money Is Shifting to FIAs and RILAs in a Falling Rate World

Let’s be honest—MYGAs had their moment.
When interest rates soared in 2023 and 2024, advisors barely had to sell. Multi-year guaranteed annuities practically walked themselves off the shelf. But now, as whispers of Federal Reserve rate cuts become reality, the ground is shifting—and fast.

According to Bankrate and Investopedia, consumer interest is rapidly migrating toward Fixed Indexed Annuities (FIAs) and Registered Index-Linked Annuities (RILAs). Indexed products are stepping into the spotlight as MYGA yields flatten and clients get nervous about locking in too late.

So what does this mean for your practice—and your clients?

Let’s break it down.

The Landscape: $434 Billion Later, the Pivot Begins

Investopedia reports that total U.S. annuity sales hit a record $434 billion in 2024, with fixed annuities (largely MYGAs) leading the charge. But that same success story is now triggering a shift. Consumers are responding to rate risk with product flexibility—and indexed annuities are increasingly fitting the bill.

• FIAs offer upside potential with no market loss risk

• RILAs add performance boosters with risk-control options

• MYGAs? Still great—but no longer the slam dunk they were at 5.5%

Bankrate’s behavioral analytics show a clear trend: consumers are recalibrating toward products that adapt. They want yield—but they also want protection from what's coming next.

What Bankrate & Investopedia Get Right (and What We Need to Dig Deeper On)

Bankrate: Behavior First

Bankrate nails the observation that investors are acting preemptively—they're not just reacting to rate cuts, they’re hedging against the next three years. That’s a different mindset from the yield-chasers of 2023.

“Clients no longer want to lock in and forget—they want responsive income tools,” said one retirement strategist interviewed by Bankrate.

Investopedia: Tech + Education = Growth

Investopedia adds a powerful layer: tech-savvy clients (and advisors) are driving the shift. Digital quoting platforms and planning software that visualize FIA and RILA performance are nudging clients toward better-informed choices.

But here’s the blind spot: product education is not keeping pace. Many advisors still rely on outdated, bloated illustrations or shy away from indexed products due to perceived complexity. That’s a gap waiting to be filled—ethically and strategically.

What Advisors Need to Do Now

1. Stop Selling Rates. Start Framing Outcomes.

It’s not about whether MYGAs are “still good.” It’s about what the client actually wants: inflation protection, market-linked growth, downside insulation. FIAs and RILAs offer structure—and structure sells in volatile times.

2. Lean Into Digital Modeling Tools

Clients don’t want hypothetical charts. They want clarity. Use platforms that integrate indexed products into cash flow models, compare cap/rate scenarios, and help illustrate real-world risk mitigation.

3. Clarify the Indexed Product Spectrum

Too many advisors still treat RILAs like variable annuities “with training wheels.” In truth, a RILA with a buffer can be less volatile than a 60/40 portfolio. Frame it that way, and you shift the conversation from complexity to confidence.

4. Document, Document, Document

As interest-sensitive products become more popular, suitability and disclosure scrutiny will rise. Be proactive—especially when selling RILAs to moderate-risk clients. Use risk tolerance tools, income assessments, and third-party documentation support.

Market Reality Check

Here’s what we’re seeing in the numbers:

• FIA applications up 13% in June and early July 2025 (InsuranceNewsNet data)

• RILA search traffic up 42% per Investopedia, especially among Gen X retirees

• Treasury yields falling toward 3.7%, signaling a low-yield 2026 environment

• Carrier repricing trends show declining MYGA rate floors in Q3 2025 filings

Translation? Clients know what’s coming. And indexed solutions are where many are turning.

The Ethical Imperative: Serve the Shift, Don’t Exploit It

Let’s be clear—this is not a sales opportunity. It’s a planning opportunity. Advisors who treat FIAs and RILAs like the new shiny object will lose credibility fast. But those who use this shift as a moment to revisit risk alignment, educate clients, and tailor portfolios will earn long-term trust.

Indexed annuities should not be sold as a rate play.
They should be presented as a volatility buffer, a longevity tool, and a midpoint between the market and the mattress.

This is where our industry can rise—or repeat old habits.

Conclusion: Ready to Pivot or Playing Catch-Up?

Consumers are evolving. Indexed products are evolving. Technology is evolving. The only question is—are you?

Because as the Fed prepares to dial rates down, your clients are dialing up their expectations. They don’t just want protection. They want a plan that adapts as much as they do.

Now’s the time to:

• Reposition indexed products as solutions—not sales

• Reeducate your team and clients on what FIAs and RILAs actually do

• Reconnect your planning process to what people really need: confidence