Current as of 17 Feb 2026. Always verify current year rates.
What is longevity risk in retirement?
Short answer:
Longevity risk is the risk of living longer than expected and running short of money later. Managing it means using scenarios, keeping flexibility in spending, and reviewing your drawdown rule over time. Some people consider lifetime income options for more certainty, depending on goals and constraints.
Key takeaways
Living longer needs funding
Scenarios beat single forecasts
Flexibility reduces risk
Review over time
Lifetime income can add certainty for some
Why this matters
Longevity risk is a key reason people underspend. Managing it calmly supports quality of life across your whole retirement.
Mini-plan (3-4 steps)
- Run scenarios to later ages in a planner.
- Separate essentials from discretionary spending.
- Use guardrails to adjust as life changes.
- Review annually and after major events.
Related questions
Sources (so you can verify)
Disclaimer: Information provided is general in nature and does not constitute personal financial advice. You should consider seeking advice from a licensed financial planner before making any financial decisions.
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