Spreading the Word about Annuities on Capitol Hill

Jun 25, 2025

Every day this year, 11,200 Americans will celebrate their 65^th birthday. And every day next year. And every day the year after that.

We’re experiencing the largest demographic wave in U.S. history. All told, 12 million Americans will turn 65 between New Year’s Day 2025 and New Year’s Eve 2027, compared to just over 6 million who turned 65 from 1995-97, according to the Alliance for Lifetime Income and ACLI analysis of U.S. Census, Intercensal data.

Birthdays only come once a year, of course. But if these celebrants acquire an annuity on their birthday, they could throw a party every month for the rest of their lives.

Annuities are the only financial products in the marketplace which provide a guaranteed monthly income like a traditional pension. Studies show that annuities can help savers better manage their cash flow in retirement. They also can ease the financial burden on the federal government.

The many benefits of annuities were discussed in depth recently on Capitol Hill at a Financial Security Caucus briefing held during National Annuity Awareness Month. ACLI was joined by financial service trade associations NAIFA, Finseca, NAFA and IRI at the event.

Savers from all economic backgrounds are purchasing annuities in record numbers as they seek the predictability that comes from guaranteed lifetime income. Recent research from economists Mark Warshawsky and Gaobo Pang shows that people retiring with $250,000 or less would most benefit from annuitizing higher portions of their retirement savings, if not all of it.

People are also using annuities to provide them with a stable flow of income to handle their basic expenses, easing the burden on their remaining savings. This also allows them to delay claiming Social Security benefits, which will result in $100 billion in savings for the federal government over time, according to ACLI research.

Panelists at the Financial Security Caucus event highlighted these findings, along with pending legislation that would make it easier for savers to access lifetime income products in their retirement plans.

Andrew Remo

Andrew Remo serves as Vice President, Retirement Security for the American Council of Life Insurers. In this capacity, he plays a leading role in advocating for policies that help people access the tools they need to save and ensure those savings last a lifetime. Previously, Andrew worked on these issues for the American Retirement Association and on Capitol Hill.