As Canadians age, they face a unique risk that doesn’t apply to 30, 40 and 50 year olds. It’s called longevity risk.

Longevity risk measures our inability to forecast precisely how long we are going to be spending in retirement… we just don’t know how long it’s going to be.

It’s very easy for a 40-year-old to say I want to retire between the ages of 60 and 65. It’s also virtually impossible for a 65-year old to say I want want to live to 90 or 95.

And because we don’t know how long we’re going to live, we can’t predict how long we’re going to be spending in retirement.

Not knowing what the future holds… not knowing how long life is going to last… there’s a real risk, a danger that your savings may notwon’t last for as long as you live.

This risk is called longevity risk.