Annuity Providers Increased Private Credit Investments
As more Americans seek guaranteed retirement income, annuity providers are shifting assets toward private credit.
Updated on Sept. 30, 2026 in Financial Planning
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A recent survey shows 83% of Americans want guaranteed retirement income, leading annuity providers to increase investments in private credit to support these products. This strategy shift coincides with rising default rates in the private credit market.
Why it matters
Providers are moving capital into private credit to build the diversified portfolios necessary to meet retiree income requirements. However, this shift increases exposure to underlying borrower risks as the market deals with higher default rates.
The private credit default rate rose to 6.3% in August 2026 compared to 6.1% the prior month. Meanwhile, 83% of 5,106 survey respondents expressed a desire for guaranteed income in retirement.
The players
Goldman Sachs
A global financial institution that provides investment banking, securities, and investment management services for individuals and institutions.
T. Rowe Price
An asset management firm that oversees $1.9 trillion and provides retirement-focused investment products.
Blackstone Private Credit Fund
An investment fund that allocates capital to private debt and has implemented specific limits on quarterly investor redemptions.
The details
Annuity providers are increasingly replacing traditional public capital market holdings with private credit to better manage strategic asset allocations. As part of these broader changes, some vehicles like the Blackstone Private Credit Fund have implemented a 5% cap on quarterly redemptions to manage capital flow. This shift reflects a wider effort by large managers, such as T. Rowe Price, to secure yields in a changing credit environment.
Timeline
July 2026: Goldman Sachs conducted a retirement survey of 5,106 Americans.
July 2026: The U.S. private credit default rate was 6.1%.
August 2026: The U.S. private credit default rate increased to 6.3%.
September 2026: Fitch Ratings issued findings on credit default rates.
September 28, 2026: Goldman Sachs executives discussed survey results.
Money Landscape
The current uptick in borrower defaults marks a departure from lower historical averages for the private credit asset class. This trend complicates the portfolio management strategies currently utilized by major annuity providers.
If you hold or are considering annuities, review the underlying asset allocation and liquidity terms of the product with a financial professional. Understand that shifts in a provider’s investment strategy may impact the risk profile of your guaranteed income stream.
The takeaway
While guaranteed income is a priority for many, the assets backing those promises are becoming more sensitive to credit market volatility. Review your retirement account statements and discuss the solvency and investment strategy of your annuity provider with a qualified financial professional.
Further reading
For more on managing retirement income, see our guide to Financial Planning.
Source note: This article includes information reported by InvestmentNews.
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