The IRS and the Treasury Department have issued final regulations on a SECURE 2.0 provision mandating Roth catch-up contributions for high-income participants aged 50 and over. The rules, which will take effect in 2027, allow plan administrators to use prior-year wages from separate employers to determine eligibility and include changes to provisions for correcting compliance failures and implementing deemed Roth elections.

Annuity sales have nearly doubled since 2020, reaching $434 billion in 2024, and a panel at the LIMRA 2025 Annual Conference predicted that sales will double again over the next five years. LIMRA's Bryan Hodgens said that stock market volatility in recent years has been accompanied by a "flight to protection, and this flight to annuities."

Retirement researcher Michael Finke argues that annuities can provide significant tax-deferred growth and guaranteed income, particularly for women who typically have longer lifespans than men. Finke highlights the benefits of annuities over municipal bonds, with insurance companies able to invest in higher-yield taxable bonds, passing on the "yield spread" to annuity holders and enabling greater lifetime income.

Members of Generation X, the oldest of which are nearing age 60, are increasingly worried about their financial preparedness for retirement, with 54% believing they won't be ready to leave the workforce, according to Northwestern Mutual. Gen Xers anticipate needing $1.57 million to retire comfortably, significantly more than the national average. Many are concerned about outliving their savings and the reliability of Social Security, and 48% plan to work during their retirement years.

Thirty-five percent of adults plan to delay retirement or have already done so, according to a New York Life survey, with inadequate savings and inflation among the factors cited. In addition, just 45% of respondents have factored long-term care or health care costs into their plans. "Many individuals are optimistic about their future selves, but these findings highlight a significant gap between their expressed confidence and their actual financial circumstances," said Jessica Ruggles of New York Life.

Securities and Exchange Commission Chair Paul Atkins has signaled a more collaborative regulatory approach, pledging businesses will get notice of technical violations before facing penalties. The move marks a sharp break from former Chair Gary Gensler's aggressive enforcement era, with Atkins focusing enforcement on fraud while advancing the White House's crypto-friendly agenda.

To prepare for the Great Wealth Transfer, advisors should consider how asset fragmentation among multiple beneficiaries could increase administrative complexity without boosting assets under management, writes Greg Cornick of Osaic. He suggests advisors work with partners that offer flexible business models, scalable technology, asset portability and expertise across market segments.

Jay Zigmont of Childfree Wealth highlights the growing childfree economy, noting that 25% of US adults identify as childfree or permanently childless. This demographic shift presents an opportunity for advisors, but it requires a new approach to financial planning that focuses on "life and legacy stewardship" rather than traditional accumulation models, Zigmont writes.

The Insured Retirement Institute's State of the Industry report is a members-only publication that includes annuity market data, operations and technology, and regulatory and legislative trends in 2024, as well as notable themes emerging in 2025. Access it here.

The Insured Retirement Institute's 2025 Retirement Security Blueprint includes 33 proposals to enhance and strengthen retirement security for more of America's workers and retirees. Access it here.