◈ GLOSSARY · RETIREMENT
Longevity Risk.
A definition, in plain English — with the books that teach it.
Reviewed by ClearValue Editorial Team · Jun 27, 2026
◈ DEFINITION
What it means
Definition
The risk of outliving your money. Average life expectancy is misleading because it's an average — a healthy 65-year-old couple today has roughly a 50% chance one spouse lives past 90 and a meaningful chance of 95+. Planning to the average underfunds retirement by a decade or more. Mitigators include delayed Social Security claiming (an 8%/year increase from full retirement age to 70), annuitizing part of the portfolio, and a more conservative withdrawal rate.
◈ IN PRACTICE
Example
A retiree planning to life expectancy of 85 with a $40k/year withdrawal needs about $1M; planning to 95 with the same spend needs closer to $1.3–1.4M, depending on returns.
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