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• Running out of assets
• Outliving your money

Longevity risk, often considered a risk multiplier, highlights the concern of outliving your assets and running out of money during retirement. With increasing life expectancies, there's a higher likelihood of needing financial support for a longer period. This risk underscores the importance of careful financial planning to ensure your assets can sustain you throughout your lifetime, even as you potentially live longer than anticipated. Strategies such as creating a diversified investment portfolio, considering annuities for guaranteed income, and regularly reviewing your retirement plan can help mitigate the impact of longevity risk.

• Interest rates
• Volatility
• Inflation/deflation

Market risk encompasses various factors, including interest rate fluctuations, market volatility, and inflation/deflation, which can impact the value of your investments and retirement savings. Interest rate changes can affect the returns on fixed-income investments like bonds, while market volatility can lead to rapid fluctuations in stock prices and investment values. Additionally, inflation erodes purchasing power over time, potentially reducing the value of your savings. Conversely, deflation can lower asset prices and decrease investment returns. Managing market risk involves diversifying your portfolio, considering investment vehicles that offer protection against inflation, and regularly reviewing and adjusting your investment strategy to adapt to changing market conditions.

• Medical costs
• Emergencies
• Milestone events

Spending risk encompasses various factors that can impact your retirement savings, including unexpected medical costs, emergencies, and milestone events. Medical expenses, especially those not covered by insurance, can significantly impact your finances during retirement. Emergencies such as home repairs or car maintenance can also require substantial funds. Additionally, milestone events like weddings or assisting family members financially may lead to increased spending. Mitigating spending risk involves creating a robust financial plan that accounts for potential expenses, maintaining an emergency fund, and considering insurance options to cover unexpected costs. Regularly reviewing and adjusting your budget and spending habits can also help manage spending risk effectively.