Replacements Are Now Driving the Fixed Annuity Market

Why Advisors Should Start With Their Own Book

For years, fixed annuity sales were fueled by new money—CD rollovers, bond alternatives, and conservative cash allocations.

That has changed.

Today, the engine of the fixed annuity market is replacements—existing annuity assets coming due, rolling out of surrender, or quietly renewing at rates that no longer reflect today’s reality.

And many advisors are sitting on the largest opportunity of their careers without realizing it.

The Shift No One Can Ignore

Across the industry, several trends are converging at once:

• A decade of strong annuity sales is now maturing

• Policyholders are aging into income, liquidity, and care conversations

• New-money rates are dramatically higher than most renewal rates

• Clients are far more open to review conversations than they were five or ten years ago

The result?
Replacement activity now represents a dominant share of fixed annuity production.

What the Numbers Tell Us (At a High Level)

While exact figures vary by carrier and product type, industry patterns are remarkably consistent:

• Hundreds of billions of dollars in fixed and indexed annuities are currently in force

• A large portion were issued between 2014–2020, meaning:

  • Many are now out of surrender

  • Or approaching renewal periods

• The average policy value is often well into six figures

• Many renewal rates reset far below current new-money offers

In simple terms:
There is more money already in annuities than there is new money entering the system.

The Renewal Gap Is the Real Story

Here’s where advisors should pay attention.

Many existing policies:

• Renew into fixed rates that lag today’s market

• Lock clients into terms that no longer match their stage of life

• Miss newer features around:

  • Liquidity

  • Income timing

  • Healthcare protection

  • Legacy efficiency

Meanwhile, new-money rates are often materially higher than what clients are earning today—even before considering added benefits or flexibility.

That gap creates a natural, client-friendly review conversation.

Why Your Own Book Is the Best Place to Start

If you’ve sold annuities for 10 years or more, you already have:

• Clients whose surrender schedules have ended

• Policies nearing renewal windows

• Long-time relationships built on trust—not transactions

This isn’t cold prospecting.
It’s responsible follow-up.

Many advisors are surprised by how often clients say:

“I had no idea this was worth reviewing.”

This Isn’t About Chasing Rates

The best replacement conversations are not rate-driven.

They’re about alignment.

• Does this money still have the right job?

• Is the structure still competitive?

• Has the client’s retirement picture changed?

• Are there ways to improve guarantees without increasing risk?

When framed correctly, replacements feel like maintenance, not movement.

The Advisor Advantage Right Now

Advisors who lean into this shift are finding that:

• Review conversations convert naturally

• Clients appreciate proactive guidance

• Replacements often lead to larger planning discussions—not just product changes

In many cases, the annuity isn’t the problem.
It just hasn’t been revisited.

The Takeaway

The fixed annuity market didn’t slow down.

It matured.

And the advisors who recognize that replacement activity is now the heartbeat of the business are the ones uncovering the most opportunity—with the least resistance.

If you’ve been in the business for a decade or more, your next wave of growth may already be on your books.