The Annuity Reimagined: How RILAs Balance Risk and Reward in 2026

NEW YORK, NY – July 27, 2026

Global Atlantic, a KKR-backed insurance powerhouse, has secured its fifth consecutive placement in Barron’s prestigious “100 Best Annuities” guide. While such accolades are noteworthy, the real story lies in which product earned the spotlight: the ForeStructured Growth II, a Registered Index-Linked Annuity (RILA). This recognition is more than a corporate win; it's a barometer for a seismic shift in how Americans are preparing for retirement, seeking a delicate balance between market growth and capital preservation in an increasingly uncertain world.

A Market in Search of a Middle Ground

The retirement landscape of 2026 bears little resemblance to that of previous generations. The decline of traditional corporate pensions has placed the burden of securing a lifelong income squarely on the individual. This challenge is amplified by the “Peak 65” demographic wave, with over four million Americans turning 65 each year, many of whom are navigating this new reality for the first time.

This dynamic has fueled an unprecedented boom in the annuity market. U.S. annuity sales soared to a record $464.1 billion in 2025, the fourth consecutive year of record-breaking growth. Investors, rattled by market volatility but starved for yield in a shifting interest rate environment, are desperately seeking a middle ground—a way to participate in market upside without exposing their nest egg to the full force of a downturn.

Enter the RILA. As the fastest-growing segment in the industry, RILAs have seen sales skyrocket from $24 billion in 2020 to a projected $85 billion this year. In a telling market shift, RILA sales have now begun to outpace those of traditional variable annuities, signaling a fundamental change in investor appetite from pure growth to protected growth.

Inside the Modern Annuity: Deconstructing the RILA

At its core, a RILA like Global Atlantic's ForeStructured Growth II is a contract with an insurance company designed to offer returns linked to a market index, such as the S&P 500, but with built-in “guardrails.” It’s an architecture of trade-offs, engineered for investors who are willing to forgo some potential upside for a defined level of downside protection.

The protection comes in two primary forms: a “buffer” or a “floor.” A buffer absorbs a certain percentage of initial market loss; for example, with a 10% buffer, if the index falls 12%, the investor only loses 2%. A floor, conversely, sets a maximum loss; with a 10% floor, the investor’s loss is capped at 10%, no matter how much further the market drops. In exchange for this safety net, the investor’s potential gains are limited by a “cap” (a maximum possible return) or a “participation rate” (the percentage of the index’s gain they will be credited).

What sets products like ForeStructured Growth II apart, earning it multiple placements in Barron’s rankings, is the degree of customization. With dozens of crediting strategies, advisors can mix and match different indices, protection levels, and term lengths. Global Atlantic has even introduced innovations like “Dual Directional” strategies, which can potentially generate positive returns even if the market is flat or down slightly.

“As retirement becomes more personal and more complex, financial professionals need the flexibility to build strategies around each client's unique goals,” said Emily LeMay and Jason Bickler, Co-Heads of Individual Markets at Global Atlantic, in a statement. “Our focus is on providing a broad portfolio of retirement offerings that helps them deliver the protection, growth potential, and income their clients need at every stage of retirement.”

The Barron’s recognition, derived from data analyzed by independent research firm Cannex, lends credibility by filtering for financially strong companies (A- rated or better) and competitive product features. It validates Global Atlantic’s strategic focus on this rapidly expanding product category.

The Power Behind the Policy: KKR's Strategic Play

Global Atlantic’s success is inextricably linked to its parent company, the global investment giant KKR, which completed its full acquisition of the insurer in 2024. This is not a passive ownership; it’s a deeply integrated strategic partnership that is reshaping both the insurance and asset management industries.

For KKR, Global Atlantic provides a massive, stable pool of “permanent capital” from policyholder premiums. Unlike finite private equity funds, this long-duration capital can be deployed by KKR’s expert teams into long-term, income-generating private assets like infrastructure, real estate, and private credit. This creates a durable, compounding source of earnings for KKR, diversifying it away from the more episodic nature of traditional buyout deals.

For Global Atlantic and its policyholders, the relationship provides access to KKR’s formidable investment engine. The returns generated by KKR's management of the insurer's assets can potentially translate into more competitive crediting rates and product features for consumers—a powerful competitive advantage in a crowded market. This synergy represents a broader trend of alternative asset managers moving into the insurance space, recognizing it as a core strategic vertical for long-term growth.

Navigating the New Landscape: What “Best” Means for You

While a spot on the Barron’s list is a powerful signal of quality and competitiveness, the term “best” is deeply personal in financial planning. “A 'best annuity' list is a great starting point, but the 'best' product is the one that fits a specific individual's retirement timeline, income needs, and stomach for risk,” noted one retirement planning specialist. “There is no one-size-fits-all solution.”

RILAs are generally considered most suitable for pre-retirees, often in their 50s and early 60s, who have a medium tolerance for risk. These investors are looking to de-risk their portfolios as they approach retirement but still need the potential for equity-like growth to ensure their savings last. They are willing to accept the risk of some loss and have a time horizon long enough to withstand surrender charge periods, which can last six years or more.

The complexity of these products is their greatest strength and their biggest challenge. Investors must understand the trade-offs. The downside protection is not absolute, and gains are always capped. Furthermore, the SEC has been pushing for greater transparency, proposing new rules like an amended Form N-4 to provide clearer, more understandable disclosures for RILAs. This underscores the critical importance of reading the full prospectus and working with a qualified, fiduciary financial advisor who can model how such a product would perform within a holistic retirement plan. Ultimately, products like Global Atlantic’s award-winning RILA represent a powerful new tool, but like any sophisticated instrument, their effectiveness depends entirely on the skill and knowledge of the person using it.