During a family trip to Tuscany celebrating my father’s 80th birthday, I reflected on the stark contrast between my parents’ comfortable retirement and the uncertain future for millennials. My parents, beneficiaries of steady economic growth and prudent saving, enjoy a prosperous retirement. In contrast, despite diligent saving and planning, my husband and I face significant doubts about our own retirement prospects. Assumptions underlying financial planning models—such as consistent economic growth, stable investment returns, and reliable social security—seem increasingly tenuous given current global challenges. The climate crisis, in particular, poses a profound threat to long-term economic stability. Projections indicate severe economic impacts from climate change, with potential GDP declines by 2080. Financial experts warn that without drastic action, the insurance industry and broader markets could collapse, undermining traditional retirement strategies. Millennials, already burdened by student debt and economic upheavals like the 2008 recession, find themselves questioning the viability of conventional retirement planning. While some relief came during the pandemic, recent market fluctuations and policy changes have rekindled anxieties. Ultimately, preparing for retirement in an uncertain world requires acknowledging these external risks and adapting strategies accordingly.
— new from Business Insider
