NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Retirement Planning Basics
Which of the following is generally considered a key retirement risk that is specific to people living longer than expected?
Longevity risk is the risk that a retiree lives longer than expected and exhausts the retirement corpus. It is addressed through conservative withdrawal rates, growth assets and annuity-type products.
- ALongevity riskCorrect
- BReinvestment risk of a matured fixed deposit only
- CLiquidity risk of listed shares
- DCounterparty risk of exchange clearing
Explanation
Longevity risk is the risk of outliving the retirement corpus. The other risks are investment-related and not specific to lifespan.
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