Will Gen X Be the Last Generation to Buy Annuities?

Few generations have lived through as many economic pivots as Generation X. Born roughly between 1965 and 1980, they’ve seen pensions fade, markets boom and bust, and retirement planning shift almost entirely onto their own shoulders. Now entering their late 40s to early 60s, Gen Xers are at the front edge of the next major retirement wave — and their decisions could define the future of the annuity industry. 

But as they navigate this stage with more skepticism and digital savvy than their parents, some in the industry wonder: Will Gen X be the last generation to truly buy annuities? 

A Generation Caught Between Two Eras 

Unlike boomers, most Gen Xers won’t retire with a defined benefit pension. Yet they still value security — they just express it differently. They want control, transparency, and flexibility, not long surrender schedules or opaque riders. 

Having lived through the 2000 and 2008 market crashes, many Gen Xers are acutely aware of market risk — and more likely to adopt a “trust but verify” mindset toward financial products and advice. 

Meanwhile, digital engagement is reshaping how Gen X consumes advice. Roughly 70% say they research financial products online before talking to an advisor, according to a 2023 Deloitte study. They expect Amazon-like clarity and real-time information. If a product or strategy can’t be clearly explained — and if they can’t model its impact themselves — it’s likely to be dismissed as too complicated. 

The Shift Toward Hybrid Thinking 

Rather than rejecting annuities outright, Gen X may redefine them. Many are open to income guarantees as one component of a diversified plan — especially if the product is more flexible or “unbundled.” 

We’re already seeing this shift in the rise of fee-based annuities and low-cost registered index-linked annuities (RILAs). According to LIMRA data, RILA sales surpassed $50 billion in 2024, while fee-based annuities continued double-digit annual growth. 

Advisors serving Gen X are blending these products with managed accounts and model portfolios rather than positioning them as standalone insurance contracts. It’s not that Gen X doesn’t believe in lifetime income. They just want it to feel integrated — a smooth extension of their investment plan, not a separate silo with paperwork and penalties attached. 

What This Means for Advisors 

Gen X clients often enter planning conversations with strong opinions, healthy skepticism, and a higher level of financial familiarity than younger investors — though their formal financial literacy still varies (FINRA Foundation’s 2023 National Financial Capability Study). 

Advisors who lead with education — showing how annuities can reduce sequence risk or complement their 401(k) assets — will find the concept resonates. 

But advisors must also meet this generation where they are: digitally empowered, comparison-driven, and quick to question costs. The conversation needs to move from “buying a product” to “solving a retirement income problem.” 

And as Millennials and Gen Z come next, with even more autonomy and digital fluency, the challenge will be to make annuities feel like tools, not contracts. 

Closing 

Gen X may not be the last generation to buy annuities — but they may be the last to buy them the old way. The industry’s success will hinge on whether it can deliver the same promise of lifetime income through transparent, flexible, and tech-enabled experiences. 

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Takeaways 

• Gen X values security but demands transparency and flexibility, challenging how annuities are designed and presented. 
• Advisors must frame annuities as part of an integrated income solution, not an isolated insurance product. 
• The next wave of buyers — Millennials and Gen Z — may still want income guarantees, but they’ll expect a digital, data-driven experience to go with them.