Longevity risk is the very real possibility of outliving your pension funds and any other investments or capital. Although life expectancy in the UK lags behind most other G7 countries, many pensioners still underestimate their life expectancy. Research by Vitality found that if a retiree on an annual drawdown income of £13,862 lived five years longer than they had envisaged, they would be left with a pension shortfall of £50,000.nnTherefore, it is important not to live beyond your means – particularly in your early retirement years.