Annuity adoption will rise in 2026, driven by market volatility, demographic shifts and growing demand for guaranteed income, writes Rich Romano of FIDx. Technological advancements, such as insurance overlays and unified managed accounts, are making it easier for financial advisors to integrate annuities into retirement planning, potentially leading to greater operational efficiency and a more streamlined application process, Romano notes.

More on annuities:

• Gen X shows greater interest in annuities for retirement security
• How annuities aid tax and estate planning
• Annuities can help clients manage cognitive decline risks
• Education, tech can help advisors overcome clients' annuity hesitation

The holiday season presents a natural opportunity for families to discuss long-term care needs. According to OneAmerica Financial, there was a 20% increase in LTC claims during November and December compared to other months, and some advisors have noted a surge in LTC-related inquiries shortly after the holidays. "It's a natural moment to have those meaningful conversations about how families can support each other and plan for things like long-term care to ensure their loved ones are protected," said OneAmerica Financial's Amy Chinn.

Health status plays a significant role in the timing of Social Security claims, with healthier individuals more likely to delay claiming, according to an analysis by David Blanchett of Employee Benefit Research Institute and Greenwald Research data. Three-quarters of those who claimed at age 70 rated their health as "good" or "excellent," compared to only 44% among those who claimed at age 62.

The Financial Industry Regulatory Authority has extended the deadline to Feb. 12 for the Securities and Exchange Commission to approve a proposal to increase the annual gift limit for registered persons to $300 from $100. The proposal is intended to account for inflation over the next decade.

The Federal Reserve announced a 25-basis-point interest rate cut in a sharply divided vote, with multiple policymakers dissenting and others signaling resistance to further easing. Officials' projections now show a likely pause in future cuts amid persistent inflation and lack of clear economic data, underscoring a split between those focused on labor market weakness and others wary of easing too far. The discord highlights uncertainty about the policy path ahead as the central bank balances its dual mandate and navigates an upcoming leadership transition.

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Wealth transfer from baby boomers to younger generations presents an opportunity for advisors to bridge the financial confidence gap, writes Philip Caminiti of New York Life. Generation X faces pressures from supporting parents and children while lacking formal financial plans. Millennials are disciplined savers but struggle with debt and retirement confidence. Generation Z is cautious and relies on digital advice. Advisors can build trust by understanding these generational differences and offering tailored guidance, Caminiti writes.

Many clients, especially those who are older or have recently lost a spouse, may experience profound loneliness during the holidays, writes Bryce Sanders of Perceptive Business Solutions. Sanders recommends ways advisors can help ease this burden and spark joy, including organizing office open houses, attending gatherings together, gifting tickets to local performances and inviting clients to personal holiday dinners.