Thasunda Brown Duckett, CEO of TIAA, stresses that retirement investors should prioritize securing reliable income streams for retirement over worrying about short-term market trends like the potential AI stock bubble. Brown Duckett notes that a growing number of retirement plans are looking to add guaranteed income solutions for participants, highlighting the importance of long-term planning and steady income to help retirees avoid outliving their savings.

Our advisor-friendly group retirement plan solution is so much more than a typical group plan. RetireAssist Connect℠ offers simplified plan management, reduced fiduciary risk and full-service support.

AI is helping to lower traditional barriers in annuity sales by enhancing transparency, simplifying processes and offering on-demand education, experts say. "AI can serve as an enabler rather than a blocker to selling these products to consumers that are really demanding more secure retirements delivered faster and more personally to suit their needs," says George Esposito, head of insurance platforms at Zinnia.

Twenty-eight percent of financial professionals report that clients have a thorough understanding of annuities, but only 14% of clients agree, according to a LIMRA survey. This knowledge gap is significant, as earlier research links higher annuity knowledge to greater likelihood of ownership. "With the oldest Gen Xers now approaching retirement age, most of whom don't have a pension, the industry needs to redouble their efforts to help consumers better understand the critical role annuities can play in filling that protected lifetime income gap left by disappearing pensions," says LIMRA's Bryan Hodgens.

Retirements are lengthening as longevity increases and more people leave the workforce earlier, according to Manulife John Hancock's Financial Resilience and Longevity Report. The report shows 52% of respondents retired earlier than planned, at an average age of 56. The report also finds younger generations have a bleaker financial outlook, with more than half of Generation Z and millennials rating their finances as fair or poor, compared with 34% of baby boomers.

Beginning next year, clients earning more than $145,000 a year must make catch-up contributions on a Roth 401(k) basis. Jane Ditelberg, director of tax planning at the Northern Trust Institute, notes that, in some cases, a health savings account may be a better option due to its triple tax advantage and flexibility after age 65.

The annuity industry is preparing for major changes in 2026, writes Brian Kunkel of AmeriLIfe. All states have adopted a best-interest standard for annuity transactions, raising the duty of care for financial professionals. The National Association of Insurance Commissioners' new valuation manual, effective Jan. 1, will require carriers to adjust reserves, potentially altering product features and pricing. Additionally, the recently passed tax and spending bill has introduced tax changes that add more complexity to retirement planning.

Help clients understand the value of whole life insurance, and dividends. Learn More.

Strategic cash management is becoming increasingly important as interest rates decline and clients hold significant portions of their portfolios in cash, providing an opportunity for advisors to add value, say Nate Conrad and Lily Calcagnini of Stone Ridge Asset Management. They suggest advisors differentiate between transactional and strategic cash, using tools such as Treasury bond ladders to maximize yields and provide predictable cash flow.

Wealth managers are adjusting strategies amid a "K-shaped" economy, in which high-income individuals benefit from asset growth while lower- and middle-income families struggle with inflation and stagnant wages. They note the risks and opportunities brought about by AI and private equity, cautioning against overexposure to small-cap stocks and emphasizing the need for active management.

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.