Which type of annuity accounts for the fewest sales in the current market?

Fixed single premium immediate annuities account for the fewest sales in the current market primarily because of their specific nature and the typical needs of consumers. These annuities require a lump-sum payment upfront and begin making immediate payments to the annuitant, which limits their appeal to a broader audience.

In contrast, other types of annuities, such as index deferred annuities, fixed deferred annuities, and variable deferred annuities, offer more flexibility, growth potential, and varied payout options that cater to a wider range of financial situations. For instance, index and variable deferred annuities allow for accumulation of funds over time and have the potential for investment growth, making them more attractive to consumers looking for ways to build wealth for retirement.

Furthermore, the immediate payment feature of fixed single premium immediate annuities tends to attract a smaller demographic, primarily those who are at or nearing retirement who want guaranteed income, while many consumers, especially younger ones, might prioritize growth-oriented products. As a result of these dynamics, fixed single premium immediate annuities generally experience fewer sales compared to other annuity types.