Artificial intelligence is reshaping the annuity industry by "enhancing the agent experience, streamlining carrier interactions and unlocking new ways to deliver value to clients," writes Thomas Bumbolow of American Life. Offering real-time sentiment analysis during client calls, simplifying suitability requirements and streamlining replacement business are among the ways Bumbolow notes the technology is optimizing annuity operations.

Record US annuity sales are being driven in part by private equity investment, fueling both product innovation and distribution, says LIMRA Senior Vice President and Head of Research Bryan Hodgens. The capital influx enables insurers to deploy more products and leverage reinsurance for capital management. Private equity is also backing distribution networks, such as independent marketing organizations and commission-free platforms.

Accurate IRA basis tracking is essential to avoid double taxation when IRAs include both deductible and nondeductible contributions, write Robert Bloink and William Byrnes. "Clients are responsible for tracking IRA basis on Form 8606, which must be filed with the Internal Revenue Service if they made any nondeductible contributions to an IRA for the year, or if they received a distribution from an account that had a basis greater than zero," they note.

Many millennials feel forced to choose between homeownership and retirement savings, with 58% believing they can only afford one, according to a Nationwide Retirement Institute study. Rising housing costs are seen as one of the biggest obstacles to retirement savings for millennials, leading 60% of respondents to adjust their retirement plans.

Hartford Funds' Mike Lynch highlights common misconceptions about Social Security among near-retirees, noting many are unaware of optimal claiming strategies and the program's funding. Lynch emphasizes the importance of financial advisors in educating clients and reassuring them about the future of Social Security.

The Social Security Administration has announced a 2.8% cost-of-living adjustment for 2026, marking the fifth consecutive year that the annual increase has met or surpassed 2.5% as inflation persists. The increase, which will raise the average monthly benefit for retired workers by $56 to $2,071 next year, will be partially offset by rising Medicare Part B premiums, which are projected to increase $21.50 a month to $206.50.

To prepare finance teams for the AI era, firms must implement structured upskilling strategies that foster continuous learning and adaptability, writes Glenn Friedman of Prager Metis. Rather than replacing finance professionals, AI should function as a powerful sidekick that handles repetitive, data-intensive tasks, allowing humans to focus on things such as ethical decision-making, strategic insight and relationship-building, Friedman writes.

Stephanie Ackler of AKD Wealth Partners discusses the "capacity crunch" faced by financial advisors, emphasizing the importance of transitioning from a solo practitioner to a team leader to manage increasing client and compliance demands. Her growth strategy focuses on people, portfolios, processes and positioning, highlighting the necessity of building a strong support team and strategic delegation to prevent burnout and ensure sustainable growth.

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.