There have been a host of natural calamities such as forest fires, extreme heat, and floods that point towards a significant change in climatic conditions. All these are recent events, and now, people are thinking, what if they retire now? What effects might climate change have on their retirement plans?
The SOA or the Society of Actuaries has done a recent survey that discloses how different generations perceive the changes in climatic conditions during their retirement planning. Below, you will find a detailed discussion on that and the key points regarding what changes they are thinking of bringing in their lives to adjust or escape the climatic changes.
What Does the SOA reveal?
According to the SOA survey, over one-third of the participants are to some extent concerned that changes in climatic conditions will have a detrimental impact on their financial security during their retirement period. However, maximum survey participants weren’t worried about the effect of climate change. 50% of all Millennials are worried about what effects climate changes will have on their retirement planning.
All generations are worried about the negative effects of climate change on their day-to-day expenditures, insurance costs, and taxes. The concerns that people are having about their personal safety and the hike in living costs for food, energy, heating, air conditioning, and home insurance are quite legitimate as many of their retirement decisions might be influenced. Certain situations might arise where every decision you make for your retirement might take a hit. How? Find out.
Where to Live After Retiring?
Having a retirement home in the mountains or at the beach is not appealing anymore. The recent natural calamities that have shaken the planet alarming the residents in these regions. Floods, fires, or extreme heat in these settings will prove to be fatal. There are usually two basic choices that one can make while deciding where they would be living in retirement. One, the area where you want to have a home, and two, the community you wish to reside in. Both of these factors will affect your finances and the way you enjoy your life.
Checking the local newspapers will help you asses the climatic changes in the regions you wish to retire. You will have all the information you need regarding the current temperatures in that area and the effects of climate change there. Instead of retiring by the beach, you can pick a region that is 25 feet to 30 feet above sea level to avoid the storm surges. But consider the fire hazard if you are moving to the mountains. Exploring the escape routes in case of a disaster will help. If you wish to retire in a desert, understanding the temperature extremities is crucial.
Explore The Alternatives
If you are not in favor of living in these areas, you can choose to live in a metropolitan city to stay safe. That way, you can stay safe from wildfires, severe heat, and floods and visit the mountains and beaches on vacation. If you have already retired and resided in a place that’s prone to fires, floods, and high temperatures, you have the option to relocate to a safer location. However, make it a point that you relocate when you have the ability. There is no point in waiting till you are frail.
It’s a time of low-interest rates. So, opt for investments that can help you bring down your daily expenses. Installing water catchment systems, solar panels, drought-tolerant plants, etc., are some of the options you have. You can also substitute your lawn with a fruit orchard or a garden where you can grow vegetables.
Irrespective of your age, you will have an inclination to create a financial cushion and protect your retirement life from threats that climatic changes can pose.
It’s your responsibility to contribute to the environment and do your bit in alleviating the negative impacts of climate change. If you are about to retire, you should consider the environmental factors that would affect you in your retirement. We hope these tips come in handy to help you make the right choice. Don’t forget to share your thoughts, comments, and feedback on our retirement tips in the comments section!