This document discusses the financial impact of longevity risk, which is the risk that people may live longer than expected. Three key points: 1) Longevity risk poses very large financial implications for governments, pension plans, insurers and individuals as people live longer than expected. An increase in lifespans by just 3 years could increase the costs of aging by 50%. 2) Unexpected longevity beyond forecasts is a financial risk, as governments, pension plans will have to pay out more benefits. Individuals also face the risk of outliving their retirement resources. 3) Addressing longevity risk requires acknowledging it, sharing the risk among individuals, pension plans and governments, developing markets to transfer longevity risk, and allowing