Longevity Risk
Also called: outliving your money, longevity
Longevity risk is the risk of living longer than your money lasts. It's the one financial risk that cannot be diversified individually, only pooled — which is precisely what annuities, pensions and Social Security do, paying survivors with the contributions of those who die earlier. Planning to a life expectancy is a coin flip by construction; couples should plan to the survivor's horizon, which is considerably longer.