Retirement Planning and the Climate Crisis: The Millennial Perspective

Climate change is undeniably one of the most urgent issues of our era, with consequences that will profoundly shape our lives and the well-being of our families. Already, climate change-related worries impact how individuals plan for the future. Recent literature has investigated how psychological stressors, like concerns about climate change, impact decision-making. Building on this, we utilize the theory of imagined futures to explore how climate change influences the retirement savings behavior of millennials, a demographic often seen as financially unprepared for retirement, and as the first generation to come of age and build a family amidst the climate crisis. Through 50 in-depth interviews, we identify five main themes: climate stress, hopeful horizons, financial planning amidst future uncertainties, embracing the present, and the parenthood effect. These themes encompass a wide range of perspectives on retirement savings behavior in the context of climate change. While some participants see climate change as a reason to save more for an uncertain future, others view the unpredictable nature of climate change as a reason to enjoy their resources now, before environmental challenges make such opportunities less feasible. Drawing from our findings, we offer implications for individuals planning for retirement, financial advisors, and policymakers.