Longevity risk
You need money to last for a long time.
Retirement
Retirement planning must manage several risks at once, including longevity, inflation, market losses, sequence risk and changing expenses.
Retirement 101 • 10
The challenge is not only earning a return. It is keeping income and assets useful through an uncertain future.
A market decline can be harder to recover from when you are withdrawing money at the same time.
You need money to last for a long time.
Taking too much investment risk can create damaging losses.
Holding too much low-growth money for decades can increase inflation and longevity pressure.
Remember this
The plan needs to survive bad markets, rising prices, changing costs and the possibility that retirement lasts a very long time.