Work & family · General financial education

Longevity as a planning risk

You do not know in advance how long retirement will last. Living longer than planned is a planning risk for income, not a calculation the app orders you to run.

In more detail

Two households with the same starting pot can have very different remaining lifetimes. Finmon therefore has no fixed withdrawal rule. Longevity is uncertain time, not a return forecast.

Background

Models that assume a number of retirement years are scenarios. They ignore health, care needs, a partner’s lifetime and sequence risk. A “safe withdrawal rate” would be advice; Finmon does not provide one.

An example

Two people retire with the same portfolio. One phase lasts twelve years, the other thirty. The same average return is then not enough to claim the same path.

A common misconception

Retirement length is known, so there is a fixed withdrawal.

The length is uncertain. Finmon does not set a withdrawal rule.

Source: OECD · Pensions and insurance. Last reviewed: 2026-11-09. Editorially reviewed on 2026-11-09. Next review 2027-11-09. Version 0.2.0. Finmon explains. It does not advise. Not investment, tax or legal advice.