Planning for retirement can be challenging in the best of times. But, today, with so much uncertainty lurking about the future, because of the climate change, the task can be even more difficult. Many people may not consider the climate change and its possible effect, but experts suggest it should be an integral part of the planning process. You must know how the climate change can impact your finances.
Climate change – is a current or future problem?
When you think about climate change, you may believe that the impact of climate change on your finances and retirement plan are too far away in the future to be worrying about it right now. However, experts recommend that in the purview of the rising instances of natural calamities like floods, cyclones, wild fires, such approach can dent your finance immensely and put off your retirement planning.
So, it is advisable to take a second look at how the climate change could impact the financial and personal well-being through the retirement. After all, remember that you are likely to live in retirement life for about 30 years or more and a lot of things may change in the future. Remember the results of global warming is not restricted rising temperature, it can also cause several other disasters like floods, hurricanes, which may impact the insurance prices.
Review how climate change can impact your portfolio
If you are planning for retirement in 2035 or later, you must consider the series risk the climate change poses to the financial portfolio. Protecting your investments over the next decade or so will require assessing your retirement plan to ensure that the sectors you have invested in are well prepared for the future. And, since the climate change can affect the business across all sectors, you must be careful about where you are putting your hard-earned money, especially you will want to gain valuable returns that you can use for the future.
Be prepared for health impact
Protecting yourself from the health impact of the climate change must your priority. Irrespective of where you live, you may be at risk of some medical risk because of climate change. Medical research suggest that the climate change is increasing the risk of heat-related illness and increasing the occurrence of chronic illnesses.
Medical experts also suggest that there is an increased risk of death from dangerous weather and diseases. So, your retirement plan should not be just about earning returns but also about getting ample health insurance protection for your and family. As the number of health related-incidents are rising, the premiums are set to increase. So, it is advisable to purchase a robust health care plan as soon as you can.
Re-look at the monthly budget and inflation
Inflation is one of the biggest risk to retirees. Economic gurus suggest that the inflation will continue to be on an upward trend and the prices of things could increase significantly, especially essential items like food grains. With the climate change-related incidents, the agricultural grounds are being destroyed and according to analysts as the profit margins for the farmers are decreasing, most countries will be dependent on imported and packed food items. In such a scenario, it is vital to re-look at your monthly budget and allocate a higher sum for the essential purchases.