Longevity Risk

Longevity risk — also called “outliving your assets” or “outliving your savings” — is the possibility that you will live longer than the funds in your retirement savings, pensions, annuities, or other retirement income stream.

Longevity is difficult to predict due to rising life expectancy and changing mortality rates. As life expectancies continue to rise, it requires greater retirement plan payouts spread over a longer period than you or your retirement plan originally expected.