Insurers keep funding in-plan annuities as recession worry falls

Insurers are still funding in-plan annuity product development and platform expansion, according to Goldman Sachs Asset Management's 2026 annuity industry survey. The share naming a potential recession the greatest macroeconomic risk to their business fell to 68% from 76% a year earlier.

The survey, first reported by PLANADVISER, found carriers were not pulling back on product development or platform expansion because of recession or volatility concerns. Credit and equity market volatility was cited by 57%, down from 66%. The share citing credit and equity valuations as a top risk rose to 38% from none a year earlier.

Advisors who sit on 401(k) menu committees or write rollover recommendations face more annuity contracts to compare. Insurers reported growing opportunities to bring guaranteed income into workplace plans and advisor-managed accounts, and 79% named generating income throughout retirement as retirees' leading objective. Each contract that reaches a plan menu or an advisory platform is another price, liquidity and guarantee-cost comparison.

Marci Green, head of retirement distribution and third-party insurance at Goldman Sachs Asset Management, said a separate participant survey published in September found 83% want some form of guaranteed income. The firm said the 79% reading from insurers was mirrored in that participant survey.

On the retail side, 58% of insurers expected registered index-linked annuities to be the fastest-growing annuity product by sales in the next year, and 20% expected RILAs to lead sales over three years. RILAs have surpassed last year's $79.6 billion in sales and are projected to exceed $85 billion this year, according to the survey.

Insurers ranked independent broker-dealers above RIAs for annuity growth, as Private Wealth Daily previously reported; 33% picked RIAs, down from 45%.