Peak 65 Meets the FIA Boom: Will We Rise to the Occasion or Miss the Moment?
Here’s the headline: Over 11,000 Americans turn 65 every single day in 2025. We’re living through Peak 65—a demographic shift unlike anything the retirement industry has ever seen. And guess what’s riding the wave?
Fixed Index Annuities (FIAs).
With market-linked growth, downside protection, and income guarantees, FIAs are being pitched as the modern pension substitute. But as interest spikes, so does the responsibility—for advisors, agents, and every professional guiding retirees through this transition.
Because let’s be honest: Are we empowering people to retire securely… or just selling them something that sounds safe?
The FIA Frenzy: A Product Perfectly Timed for a Retirement Crunch
FIAs have seen meteoric growth in recent years—sales surged to near $100 billion in 2024 and are staying strong in 2025. Why? Because they hit all the right emotional buttons for a retiree cohort staring down inflation, volatility, and vanishing pensions.
The appeal is clear:
Principal protection: No downside in a market correction.
Upside potential: Participate in the gains of indices like the S&P 500 (up to a cap).
Lifetime income options: A pension-like payout without a pension.
Tax deferral: Compounds quietly until distribution.
This is exactly what retiring boomers want: simplicity, safety, and sustainability. But the real question is—are we delivering what they need?
Critical Reality Check: FIAs Aren’t a Silver Bullet
Let’s clear the fog.
FIAs can be great tools. But they’re often marketed with glossy promises and fuzzy explanations. And that’s where the cracks form.
Problem #1: Product Complexity
Participation rates. Spreads. Cap rates. Index choices. Riders. Surrender charges. Bonuses that vanish after year one.
Most clients—and frankly, many agents—don’t fully grasp the mechanics. That’s dangerous.
Solution: Stop selling based on sizzle. Use plain language. Illustrate downside protection and realistic upside. Set expectations early and honestly.
Problem #2: Misuse as a “One-Size-Fits-All” Solution
FIAs are positioned as the retirement answer—but they’re not for everyone.
Short time horizon? The surrender schedule can be a killer.
Liquidity needs? Withdrawals are limited.
Want guaranteed returns? This ain’t a MYGA.
Solution: Use FIAs strategically—as part of a diversified income plan, not the centerpiece of a fear-based sales pitch. Match the tool to the goal, not the quota.
Problem #3: Ethics and Oversight in a Booming Market
Any time there’s a gold rush, you get both innovators and opportunists. Unfortunately, we’ve seen some FIA practices veer into bait-and-switch territory—upfront bonuses offset by long-term fees or low renewal caps after year one.
Solution: Put ethics over earnings. Disclose everything. Reaffirm suitability annually. Lead with planning, not product.
Opportunities Amid the Surge: How to Elevate Your FIA Game
Here’s how top advisors are standing out as Peak 65 accelerates:
1. Use the FIA as a Bridge, Not a Fortress
Think of FIAs as the bridge between risk assets and guaranteed income—not a walled-off fortress. Layer them with MYGAs, SPIAs, or LTC riders to customize plans to client needs.
2. Educate Clients Like the Fiduciary You Are (or Aspire to Be)
Walk clients through FIA mechanics using real-world analogies. “Your growth is like a car in traffic—your cap is the speed limit, and your spread is the toll.”
3. Collaborate with Other Professionals
FIAs shouldn’t live in a silo. Bring in CPAs, estate attorneys, and RIAs to ensure the product fits the total plan—taxes, legacy, RMDs, and all.
The Big Picture: It’s Not About Selling FIAs—It’s About Securing Futures
Peak 65 isn’t just a sales cycle. It’s a societal moment. One that demands thoughtful, ethical, and effective planning from those of us who claim to serve the retirement market.
FIAs can be part of the answer—but only if we’re using them for what they are, not what they’re hyped to be.
