Managing Longevity Risk

⏱️ 20 min read Intermediate Level 2: Deep Dives

How to ensure your money outlives you: annuities, deferred Social Security, and portfolio design.

Core Concepts

Longevity risk is the risk of outliving your money. As life expectancies increase, a 30-year retirement is becoming the norm, requiring a portfolio that can grow over time.

Implementation Strategy

Strategies include delaying Social Security to age 70 for guaranteed inflation-adjusted growth, purchasing Single Premium Immediate Annuities (SPIAs), and maintaining a healthy equity allocation.

💡 Key Takeaway

Equities are necessary even in retirement to protect purchasing power over a multi-decade horizon.