Defined terms for the annuity market and lifetime income landscape.
Longevity risk is the risk of outliving the financial resources set aside to fund consumption across one's remaining lifetime. Why it matters Longevity risk is the foundational economic problem that any lifetime income arrangement is built to address. Remaining lifetime is uncertain, and the right tail of the survival distribution is long enough that planning for an average lifespan leaves substantial exposure; the structural question for retirement income is who bears that exposu
