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Ride the RILA wave

Momentum continues to build around registered index-linked annuities (RILAs), and if the last decade offers any indication, it鈥檚 not slowing down anytime soon. According to , RILA sales reached a record $65.6 billion in 2024, marking a tenth consecutive record-setting year for RILA sales. Originally introduced in 2010, RILAs 鈥� also known as buffered annuities, structured annuities and variable indexed annuities 鈥� are riding a rising wave of popularity as a way to help clients meet their long-term financial goals.

Creating the groundswell is demand from consumers looking for an efficient way to manage portfolio risk. Start your search for prospects by looking at your Gen X clients.

Why the 鈥淔orgotten Generation鈥� deserves attention

While often overshadowed by the baby boomers and millennials, Gen X represents a lower percentage of the population yet commands a high portion of wealth.

As a smaller and younger demographic, their collective wealth logically lags baby boomers. However, shows they鈥檙e gaining ground. Their wealth is on the rise, with plenty of time still left on the earnings clock.

Defining moments created demand

Gen X experienced the stock market highs of the 90s and were mid-career during the market crashes of 2001 and 2008. Their experience with both the highs and lows of the market, combined with today鈥檚 low rates and their time left to retirement, make RILAs a strong match for the Gen X client. The solution uniquely offers Gen Xers valuable growth potential to help maximize their future years of saving while delivering a level of protection against loss.

RILAs rise to the challenge

RILAs were designed with specific features that help manage risk while providing greater growth potential than fixed income alternatives.

• Mechanisms to manage risk. RILAs provide a measure of protection from loss due to market downturns.
• Index-linked growth potential. Money grows by earning interest credits based partly on the movement of an external stock market index. Cap and participation rates may limit the amount credited.
• Tax deferral on growth. Taxes are not paid on growth until money is withdrawn from the annuity.

Besides managing the risk of market downturns, RILAs can also help manage the risk of inflation. A handful of alternatives also offer loss protection benefits, but consumers may forgo longer term purchasing power as inflation outpaces them.

Take the plunge

Professor Wade D. Pfau, Ph.D. and retirement income planning expert, investigated how this new asset class addresses the growing impact of three key retirement risks. Access his exclusive report to discover how a RILA could help clients, especially Gen Xers close to retiring, build a resilient retirement income plan.

Insights on 桔子视频 Connect. Tips, tools and resources to help grow your business by helping clients retire with confidence.

Registered index-linked annuities have a risk of substantial loss of principal and related earnings. They are designed to be a long-term investment product used to help provide income for retirement and are not suitable as a short-term investment.