How climate change could impact your retirement

Climate change is already well and truly causing extreme weather events around the world and fluctuating temperatures. For these very reasons alone, it’s vital that we unite, as a global population, to create a sustainable future.

To halt and reverse climate change means that the world needs to make a plethora of amendments to our own behaviours and what we consume. There’s no doubt that these changes will have ripple effects in the future –  including throughout our retirement.

Here are three points to consider for your twilight years.

You can invest in sustainable businesses to improve your nest egg 

Because the world is moving towards a more sustainable future, many companies choose to adopt greener solutions. This trend is only growing in stature. Ultimately, investing in greener alternatives means you’re setting yourself – and the world – up to reap plenty of rewards for your retirement. For example, there are even superannuation companies that are dedicated to eco-friendly investments.

Historically, impact investing (putting your money behind social or environmental movements) has not resulted in the same returns as other investment – but this is no longer the case with sustainable movements.

American financial service firm Morningstar highlighted that sustainable funds outperformed benchmarks in 2018, with 63 per cent landing in the top half of their categories. That says a lot about the mindset change we’re experiencing across several sectors. 

Extreme weather events could determine where you retire 

Popular retirement destinations like Florida and Arizona in the United States are already at risk of extreme weather events due to climate change alone.

In Australia, southeast Queensland is known as the most popular retirement destination for its mild weather and beautiful summers. Meanwhile, the Sunshine Coast, Gold Coast and Brisbane are already well-populated with retirees, with many more expected to move in the coming years.

If climate change is not halted, this region could get lashed with tropical cyclones, usually only native to North Queensland. We can also expect associated flooding and damage to regions where the infrastructure has not been built for these specific weather events.

Beyond this, there will be other issues to consider around your lifestyle, safety and finances. For instance, insurance premiums would soar, damages would need to be paid and – in severe cases – extreme wraths from Mother Nature could destroy entire buildings.

Outside of major weather events, rising heat and cold is also likely to set into our retirement years.

Employment trends are likely to change

Working towards retirement requires a stable income with healthy injections into your superannuation fund right now. But there are many industries that are going to be impacted by climate change, like tourism and agriculture. If regions that were once perfect for holidaying or planting crops become smashed with storms, heatwaves, frost and other extreme events, those sectors will need to make moves to combat these instances well and truly in advance.

Climate change should not be treated as an inevitability, though. Many industries will be impacted by shifting global trends towards sustainability. Coal mining, for example, will not be a viable career option in the future. Meanwhile, we are moving away from plastics, causing a massive change in the way manufacturing works.

The good news is that there are plenty of new opportunities popping up, so preparing for a greener means you’ll have a head start on securing a stable income and comfortable retirement.

Want to make a positive contribution to the climate change battle? See how CarbonClick can help you do your part in offsetting harmful emissions. If you are a business owner, you can help Save the planet with a simple click now.