Peak 65 Is Here. Are Your Fixed Index Annuity Strategies Climbing or Coasting?

Here’s the trillion-dollar question:
As more than 11,000 Americans turn 65 every day, are we matching the scale of this retirement wave with annuity strategies that actually serve them—or are we just selling them?

The “Peak 65” moment is more than a demographic headline. It’s a once-in-a-generation opportunity—and responsibility—for advisors and insurers to redefine how we approach income planning. At the heart of this shift is the Fixed Index Annuity (FIA), a product tailor-made for this exact chapter of American retirement.

And yet, the industry’s rapid shift toward FIAs feels a bit like climbing Everest in a T-shirt. Yes, sales are booming—but are we really prepared?

The Surge: Why FIAs Are Winning Right Now

Let’s start with the facts:

• FIA sales hit $125.5 billion in 2024, up 31% year-over-year.

• In Q4 alone, FIAs pulled in $30.4 billion, a 22% YoY increase.

• FIAs thrived as high interest rates enabled richer caps and better income guarantees.

• The “Peak 65” retirement surge will continue into 2027, flooding the market with income-hungry, risk-averse retirees.

These numbers tell us that retirees want two things: protection and possibility. And FIAs—on paper—deliver both.

But the question isn’t just whether FIAs are popular. It’s whether they’re being understood, positioned ethically, and integrated strategically into long-term retirement plans.

A Product Built for This Moment—But Not Always Used That Way

FIAs are ideally suited for today’s retiree:

• They offer principal protection, a feature that feels essential in an era of volatility.

• They provide market-linked growth, enough to keep pace with inflation (if positioned properly).

• They support guaranteed lifetime income riders, making them functional pension alternatives.

But here’s the rub: Many retirees don’t actually understand the products they’re buying. And too many advisors aren’t positioning FIAs as part of a holistic income strategy. They’re selling features, not fitting plans.

Professional Reality Check:
Are you using FIAs to solve a specific income or risk challenge?
Or are you recommending them because the cap rate looks good this quarter?

Let’s Talk Strategy, Not Just Sales

FIAs can be the keystone of a retirement plan—but only if we shift our positioning.

1. From “Protection with Upside” to “Income Optimization Strategy”

Let’s stop leading with participation rates. Start with longevity risk. Inflation risk. Sequence of returns risk. Build layers of income with FIAs as one of several tools.

Tip: Show clients how the FIA supports a time-segmented withdrawal strategy, not just how it “might beat CDs.”

2. From Gimmicks to Guarantees

AI-powered indexes, exotic crediting strategies, and 18-page illustrations don’t build trust. Clarity does.

Tip: Build a one-pager that explains the index, the cap/floor, and the rider payout in plain language. Then hand it to your compliance team and your grandma. If they both understand it—you’re golden.

3. From Sales Pitches to Ethical Frameworks

FIAs should never be used to plug a planning hole you didn’t take time to understand. The fiduciary mindset should guide every recommendation—even if you’re not technically bound by it.

Tip: Use a “Why Not?” filter. Why not a simple SPIA? Why not laddered T-Bills? Why not delay Social Security? FIAs should win on merit, not marketing.

The Real Risk: Popularity Without Proficiency

We’ve seen this before—products that catch fire and then burn trust. The FIA space is now vulnerable to the same fate if we don’t raise our standards:

• Product complexity is growing faster than advisor fluency.

• Sales practices are improving, but still lag consumer expectations.

• Transparency and simplicity are still the exception—not the norm.

Regulatory Risk Warning: NAIC and state regulators are watching. If advisors continue overselling income riders or misrepresenting index strategies, expect enforcement—and litigation—to follow.

What This Means for Your Practice

The future of retirement income is being rewritten right now. Advisors who lead with clarity, strategy, and ethics will dominate this space. Those who chase caps and commissions won’t.

Here’s how to win:

• Reframe FIAs as tools—not solutions.

• Educate clients through analogies and visuals—not jargon.

• Integrate products based on goals—not quota.

• Document decisions as if a regulator is reading over your shoulder—because one day, they might.

Final Word: Build Trust Bigger Than the Boom

The FIA boom is real. But the opportunity is bigger than the sales spike. We can build an industry where retirees actually understand what they own—and feel good about it.

So here’s your call to action:

Lead with strategy. Educate with clarity. Recommend with integrity.
The “Peak 65” wave is here. Let’s not just ride it. Let’s build something that lasts after it crests.