Retiring in 2025? What the ‘Peak 65’ Boom Means
As 2025 unfolds, the United States reaches a historic demographic milestone—“Peak 65”. This year, a record 4.2 million Americans will turn 65, with more than 11,400 people reaching retirement age every day. This unprecedented shift marks the largest cohort of Baby Boomers entering retirement and signals a new era for financial and retirement planning.
With traditional pensions fading and retirement lifespans stretching into decades, retirees are seeking dependable income solutions. At SafeMoney.com, we believe one solution is rising to meet this challenge: annuities—especially Fixed Index Annuities (FIAs).
What Is “Peak 65” and Why Does It Matter?
“Peak 65” refers to the period between 2024 and 2027 when Baby Boomers—those born between 1946 and 1964—will hit age 65 in record numbers. This wave is transforming the retirement landscape:
- Defined-benefit pensions are nearly extinct.
- Social Security is under pressure.
- Personal savings often fall short.
According to the Alliance for Lifetime Income, nearly half of households aged 61-65 are at risk of not being able to maintain their standard of living in retirement. The biggest threat? Running out of money.
Annuities: A Reliable Income Stream in Uncertain Times
What Are Annuities?
Annuities are financial products that convert a lump sum into guaranteed income for a specific period—or for life. They’re designed to provide longevity protection, ensuring retirees don’t outlive their savings.
Why Are Annuities Gaining Popularity?
In a climate of stock market volatility and rising interest rates, more retirees are seeking guaranteed, predictable income. This is where annuities—particularly Fixed Index Annuities (FIAs)—shine:
- Principal protection: Your investment is shielded from market losses.
- Growth potential: Gains are tied to market indices, like the S&P 500.
- Tax deferral: Earnings grow tax-deferred until you start withdrawals.
- Lifetime income riders: Add-ons that provide income for life.
Spotlight on Fixed Index Annuities (FIAs)
FIAs blend the benefits of traditional fixed annuities and market-linked growth. Unlike variable annuities, your money is never directly invested in the market, reducing your risk.
As of mid-2025, some FIAs offer crediting rates over 6%, and many products include guaranteed income options that retirees are using as private pension alternatives.
Why Now?
Rising interest rates have created a favorable environment for new annuity buyers. Unlike past years when low rates dulled the appeal of annuities, today’s products offer higher payout rates and more flexible terms.
The Policy Push: Annuities in Retirement Plans
Recognizing the need for secure income options, policymakers and retirement advocates are promoting annuities in workplace plans. The Insured Retirement Institute (IRI) released a 2025 Retirement Security Blueprint advocating:
- Expanded access to annuities in 401(k) plans
- Incentives for lifetime income options
- Streamlined annuity regulations
These changes aim to make annuities more accessible and more integrated into how Americans save for—and withdraw from—retirement.
Closing the Retirement Income Gap
Most Americans today rely on defined-contribution plans (like 401(k)s), shifting the burden of retirement planning from employers to individuals. But with that comes new risks: market volatility, inflation, healthcare costs, and longevity.
Annuities provide a buffer. They help fill the income gap left by inadequate savings and limited Social Security benefits.
Financial Literacy and Awareness Still Lag
Despite their advantages, annuities are still misunderstood. Misinformation and complex product structures keep many retirees from exploring their benefits. At SafeMoney.com, we’re committed to breaking down these barriers with easy-to-understand resources and expert insights.
Conclusion: The Right Time for the Right Solution
The “Peak 65” phenomenon is not just a demographic curiosity—it’s a financial turning point. Millions are entering retirement facing unprecedented uncertainty. Annuities, especially Fixed Index Annuities, offer a powerful tool to create predictable income, protect against market downturns, and ensure a more confident retirement.
If you’re approaching 65 or helping someone who is, now is the time to explore how annuities can fit into your broader retirement strategy. At SafeMoney.com, we’re here to help guide you every step of the way.
Want to learn more about how annuities can support your retirement goals?
Explore our resources or schedule a free consultation with a SafeMoney.com retirement specialist today
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🧑💼 Written by: Brent Meyer, founder and president of SafeMoney.com. With more than 20 years of hands-on experience in annuities and retirement planning, Brent is committed to helping Americans make informed, confident financial decisions.
Disclaimer: This article is for educational purposes only and does not constitute investment, tax, or legal advice. Always consult with a qualified financial professional to evaluate how any retirement income strategy, including annuities, fits into your personal financial plan. Guarantees are subject to the claims-paying ability of the issuing insurer.
