Americans are pouring record amounts of money into annuities. But choosing the right one depends less on interest rates and more on who is sitting across from you at the dinner table.
2 U.S. annuity sales jumped to $461.3 billion in 2025, according to LIMRA’s Individual Annuity Sales Survey. 3 Millions of Americans are hitting retirement age each year during a historic “Peak 65” wave, and guaranteed income now feels less like an optional add on and more like a necessity. Whether you are single, married, or part of a blended family, the annuity you choose should mirror the people you are protecting.
Why Annuity Demand Is Hitting All Time Highs
5 The annuity industry sold more than $400 billion in products during 2025, continuing a streak that has rewritten sales records of the past two decades. As recently as 2019, total annuity sales hovered around $240 billion.
Several forces are driving this surge:
- 4 America’s aging population is the single most important long term driver. Between 2023 and 2028, the number of Americans aged 65 or older will grow by more than 9.2 million, surpassing 68 million retirees.
- 3 Favorable economic conditions in 2025, a strong but volatile equity market and higher interest rates, coupled with new entrants into the annuity market, have created an attractive environment.
- 3 A record number of people are in their early and mid 60s, looking at meaningful account balances and asking a simple question: “How do I turn this pile of savings into a paycheck I can’t outlive?”
4 Sales in 2026 are expected to remain near 2025’s historic highs. Although interest rates may moderate slightly, replacement activity will help sustain momentum as consumers lock in guarantees or transition maturing annuity assets.
The bottom line: annuities are no longer a niche product. They are now a central piece of the retirement puzzle for households of every size and shape.
annuity options for single married blended family retirement planning
Single Retirees: Maximizing Every Dollar of Income
For someone retiring alone, the biggest financial threat is outliving their money. There is no partner’s Social Security check to fall back on. There is no second pension.
11 A single life annuity provides lifetime income payments to a retired person. It can be a good choice if you are single and looking to maximize your payments in retirement. 13 Annuities with a life only payout typically provide the largest individual payment amounts when compared with other annuitization options. The insurance company does not need to plan for a second lifespan, so it can offer a bigger monthly check.
Here is what singles need to weigh carefully:
| Feature | Advantage | Risk |
|---|---|---|
| Monthly Payout | Highest among all payout types | No survivor benefit for heirs |
| Longevity Protection | Income guaranteed for life | Principal may revert to insurer at death |
| Simplicity | Easy to set up and manage | Fixed payments may lose value to inflation |
13 A single life annuity comes with a high amount of risk, as payments can end unexpectedly when you pass away. Unless you pay extra for a death benefit rider, what remains of your annuity’s value goes back to the insurer when you die. 15 Single life annuities can be good choices for unmarried people because they offer the highest payouts. They make the most sense for single people at or near retirement age. Very young people, in their 20s and 30s, may be better off investing in the stock market.
The sweet spot for singles is typically between ages 55 and 75, when market volatility feels riskier and predictable income feels like peace of mind.
Married Couples: Guarding Against the Widowhood Penalty
For couples, the goal is not simply the biggest check. It is making sure the surviving spouse does not fall into financial hardship.
46 Losing a spouse is already an overwhelming emotional experience, but the financial consequences can be equally devastating. One of the biggest surprises surviving spouses face is the “widow’s penalty,” a sudden reduction in household Social Security income. Because many retirees rely heavily on Social Security, this drop can disrupt even the most careful retirement plan.
When one spouse dies, the household loses one Social Security check but still pays the same mortgage, property taxes, and utility bills. A joint and survivor annuity is designed to soften that blow.
25 A joint and survivor annuity can help solve that problem by guaranteeing income for both lifetimes. Whether one partner lives five years longer or twenty, this type of annuity ensures the surviving spouse continues to receive steady payments.
Couples can choose between several payout options:
- 100% survivor option: The monthly payment stays the same after the first spouse dies. Maximum protection, but lower initial checks.
- 75% or 50% step down option: The payment drops by a set percentage after the first death, reflecting lower costs for a single person household.
27 Because a joint and survivor annuity takes into account the future payments to a surviving person, it is likely to have lower monthly payments than other annuities, such as a single life annuity.
Key insight: 29If both spouses have other sizable income sources like Social Security, pensions, or savings in a retirement plan, it may not make sense to opt for the full 100 percent benefit. But if one partner depends heavily on the other’s income, the 100 percent option offers better peace of mind.
21 The IRS requires that the amount paid to the surviving spouse must be no less than 50% and no greater than 100% of the amount of the annuity paid during the participant’s life.
Blended Families: Stopping the Inheritance Tug of War
This is where retirement planning gets the most personal and the most complicated.
35 Nearly 40% of marriages in the United States include at least one previously married spouse. In these blended families, retirees often face a painful balancing act: keeping a current spouse financially secure while making sure biological children from a prior marriage receive their fair share. 36 If a couple both have children by prior marriages, the surviving spouse is not legally obligated to leave any assets to the deceased spouse’s children. This is true if the spouse inherits under a Will, becomes the owner of jointly held assets, or is named as the primary beneficiary of tax deferred retirement accounts.
Without careful planning, your kids could end up with nothing. Here are three strategies blended families should consider:
1. Cash Refund Rider. If you die before receiving payments equal to your original investment, the insurer pays your children the remaining balance as a lump sum.
2. Life Insurance Wealth Replacement. 39Life insurance may also be a way to provide for children from a previous marriage. Designating those children as the beneficiaries of a life insurance policy may free up other assets, enabling you to leave most of your money and property to your spouse. It may be especially helpful if your second spouse is much younger than you.
3. Life with Period Certain. This payout guarantees lifetime income but includes a minimum period, often 10 or 20 years. 15If you purchase one of these annuities and die before a certain number of years, your beneficiary will still receive payments until that period expires.
32 Failure to address the complexities of blended families can result in unintentional disinheritance of children from a previous marriage, overreliance on verbal promises instead of binding legal documents, and family conflict between surviving spouses and children.
Quick Comparison: Which Annuity Fits Your Household?
| Household Type | Best Annuity Structure | Top Priority | Biggest Risk |
|---|---|---|---|
| Single | Single Life Annuity | Maximum monthly income | No death benefit for heirs |
| Married | Joint and Survivor Annuity | Lifetime income for both spouses | Lower monthly payouts |
| Blended Family | Period Certain or Rider Enhanced Annuity | Spouse income plus children’s inheritance | Higher complexity and fees |
What to Do Before You Sign Any Annuity Contract
Choosing an annuity is one of the most permanent financial decisions you will make. Once you annuitize, the payout structure is typically locked in.
Here are five steps every household should take:
- Calculate your guaranteed income floor first. Add up Social Security, pensions, and any other guaranteed income. The gap between that number and your monthly expenses is what an annuity should cover.
- Match the product to your household. Singles should lean toward higher payouts. Couples need survivor protection. Blended families need legacy riders.
- Shop multiple insurers. 1Fixed annuity rates increased across most terms in early 2026, with rates pushing higher by roughly 0.25% to 1.85% across 4, 5, 6, 7, and 10 year terms. Comparison shopping matters.
- Ask about inflation protection. Fixed payments lose buying power over time. An inflation rider costs more but can protect you in a 20 or 30 year retirement.
- Consult a fiduciary advisor. Annuities involve commissions and fees that vary widely. A fiduciary is required to act in your best interest, not the insurer’s.
The right annuity is not about chasing the highest interest rate. It is about building a retirement income plan that protects the people you love most. For singles, that means squeezing the most from every dollar. For married couples, it means making sure a surviving spouse never worries about paying the bills. And for blended families, it means honoring both your partner and your children without forcing them into a painful fight over money. Retirement planning is deeply personal. Take the time to get this decision right, and share this with someone you care about who is approaching retirement. Drop your thoughts in the comments below on how you are planning your retirement income strategy.
