How Lincoln Financial's New Annuity Strategy Addresses Investors' Real Fears

Amid growing consumer anxiety about inflation, market crashes, and economic uncertainty, Lincoln Financial Group (NYSE: LNC) is doubling down on a product category that’s gaining serious traction: fixed indexed annuities that promise growth without the downside risk.

The core pitch? A new 1 Year S&P 500® Dual Trigger account option that lets investors capture upside potential even in flat or declining markets—while maintaining 100% downside protection. Think of it as having your cake and eating it too, at least on paper.

What’s Driving This Move

Recent consumer sentiment data tells the story. A significant portion of investors are losing sleep over three things: inflation (66% concerned), investment losses (42%), and market volatility (38%). Even more telling—61% of consumers actively want investments that balance growth with protection, not one or the other.

“The fixed indexed annuity space is booming,” noted Daniel Herr, senior vice president of Annuity Product Management at Lincoln Financial Group. Industry forecasts suggest sales could hit nearly $100 billion by 2025, reflecting genuine demand for principal-protected products with income-generation potential.

Beyond the Dual Trigger

Lincoln Financial isn’t stopping there. The company is simultaneously rolling out the 1 Year S&P 500® 10% Daily Risk Control Trigger for its OptiBlend® fixed indexed annuity line. The hook here is that this trigger-based index can potentially deliver higher crediting rates than traditional S&P 500 indexing strategies, offering clients another lever for upside capture.

The Demographic Tailwind

There’s another force at play: demographics. Approximately 4.1 million Americans reach age 65 annually through 2027, creating what Tim Seifert, senior vice president of Retirement Solutions Distribution, calls “a historic surge.” That’s millions of people transitioning from accumulation to preservation mode—precisely the moment when a Lincoln fixed annuity’s protective features start looking attractive.

Last year alone, Lincoln Financial worked with over 22,000 financial advisors to place new annuity contracts with clients. With $295 billion in end-of-period account balances as of late 2023, the firm has positioned itself as a credible player in the retirement income space.

The Bottom Line

As market uncertainty persists, products that promise both protection and participation are reshaping retirement planning conversations. Whether fixed indexed annuities truly deliver on that dual mandate depends on your risk tolerance and time horizon—but the consumer appetite is undeniable.