What to Expect for Individual Annuity Design in 2026
Protection and Simplicity Take Center Stage
With 4.1 million Americans turning 65 each year through 2027—the so-called “Peak 65” wave—the annuity industry is responding with products designed around what retirees need most: protection and income. In a recent roundup for Life Annuity Specialist, Zinnia CEO George Esposito shared his outlook on where annuity product design is headed in 2026.
The consensus among industry leaders is clear: as baby boomers move deeper into retirement, products that prioritize downside protection and guaranteed income will dominate the market.
Simplicity Wins
In a market where uncertainty is the only constant, clarity has become a competitive advantage. Esposito sees product design evolving to meet this demand head-on.
Key Insight
Annuities will continue moving toward simpler, more protection-focused designs as advisors and consumers seek clarity amid market uncertainty.
This shift toward simplicity isn't just about product complexity—it's about meeting consumers where they are. With millions approaching retirement, products that are easy to understand and explain become essential for advisors across all channels.
Broader Distribution Channels
The move toward protection-focused, simpler products has implications beyond just product design. Esposito sees these changes opening doors to new distribution opportunities.
Key Insight
The shift toward simpler products should help expand adoption across banks, broker-dealers, and advisors who charge a fee for services.
As products become more straightforward, the barriers to entry for distribution partners decrease. Banks and fee-based advisors who may have previously avoided annuities due to complexity can now confidently incorporate these products into their offerings.
RILAs Continue to Gain Ground
Registered index-linked annuities (RILAs) have been one of the industry's fastest-growing product categories, and Esposito expects that momentum to continue in 2026.
Key Insight
RILAs are likely to maintain momentum given their ability to offer market-linked upside while limiting downside exposure.
The appeal of RILAs lies in their dual nature: they provide growth potential tied to market performance while offering buffers or floors that protect against significant losses. As other industry leaders noted, some carriers are now offering RILAs with 100% principal protection—a feature that has exceeded adoption expectations.
MYGAs Hold Their Ground
While RILAs capture headlines, Esposito notes that traditional fixed-rate products aren't going anywhere. Multiyear guaranteed annuities (MYGAs) continue to serve a vital role in the market.
Key Insight
Fixed-rate annuities (MYGAs) are expected to continue attracting advisors and consumers who value simplicity and guarantees, even in a less favorable interest rate environment.
The enduring appeal of MYGAs reflects a fundamental truth about the retirement market: many consumers simply want to know exactly what they'll receive. In an age of complexity, the straightforward guarantee of a fixed rate remains compelling.
The Year Ahead
As the article notes, “two words define the year ahead: income and protection.” With tens of billions of dollars in annuity contracts coming out of surrender-charge periods in 2026, carriers and distributors are positioning to capture assets from consumers seeking their next retirement solution.
The convergence of demographic trends, market uncertainty, and evolving consumer preferences is creating a clear direction for product development. Carriers that deliver simpler, protection-focused products with clear value propositions will be best positioned to serve the massive wave of retiring Americans.
For Zinnia, which provides the technology infrastructure that enables carriers to bring these products to market efficiently, these trends underscore the importance of agile, modern systems that can support rapid product innovation while maintaining the compliance and operational excellence the industry demands.
Read the Full Article
Want the complete picture on annuity design trends for 2026? Read the full article on Life Annuity Specialist, featuring insights from leaders at Transamerica, Global Atlantic, Jackson National, and more.
Read the Full Article on Life Annuity Specialist