Guaranteed Income Demands Fuel Rise in Private Credit Annuity Holdings

The majority of Americans surveyed by Goldman Sachs in July 2026 want guaranteed income as part of their retirement strategy, but many are hesitant to lock up their savings in annuities. According to the survey, which polled 5,106 people, 83% said they wanted some form of guaranteed income. However, retirees may increasingly find that their annuity products tie into private credit investments.

Wyatt Lee, head of target date strategies at T. Rowe Price, said that 'private credit is becoming a big piece of the underlying holdings in the annuity space.' He noted that private credit has taken on a significant role in providing income, and it's a key part of a diversified portfolio.

The increased reliance on private credit comes as Fitch Ratings reported a record 6.3% default rate for U.S. private credit borrowers in August. This stress has hit retail investors, with some semi-liquid private credit funds limiting withdrawals due to high demand.