# Longevity Risk

*Retirement & Benefits — Finicade finance glossary*

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.

**Also known as:** outliving your money, longevity

**Related terms:** [Annuity](https://finicade.com/glossary/annuity), [Safe Withdrawal Rate](https://finicade.com/glossary/safe-withdrawal-rate), [Pension (Defined Benefit Plan)](https://finicade.com/glossary/defined-benefit-pension), [Social Security](https://finicade.com/glossary/social-security), [Sequence of Returns Risk](https://finicade.com/glossary/sequence-of-returns-risk)

Source: https://finicade.com/glossary/longevity-risk