Tucson Standard

Some millennials are reevaluating their retirement strategies due to the uncertainties brought about by climate change, according to a study conducted by the University of Arizona. "Millennials are the first generation to reach retirement-savings-age amid the climate crisis," stated Marissa Hettinger, the lead author and a graduate student in human development and family science at the university.

Hettinger explained her personal interest in this subject as a millennial herself. "When our parents and the generations before them set up their 401k and Roth IRAs, they weren't necessarily thinking about the impacts of climate change when they reach retirement age," she noted.

The study, published in the Journal of Family and Economic Issues, was conducted by Hettinger along with Sabrina Helm, an associate professor and PetsMart Endowed Chair of Retailing and Consumer Science, and Kealie Walker, another graduate student. The team interviewed 50 participants aged 26 to 41 through Zoom to gather insights into how millennials perceive financial planning amidst climate change.

Their research aimed to understand participants' "climate stress," which Hettinger described as feelings of urgency and anxiety concerning climate change. This approach helped identify prevalent themes regarding how millennials imagine their futures under these conditions.

Helm highlighted that for millennials dealing with climate stress, "imagined futures" play a crucial role. This concept involves envisioning future scenarios, emotional reactions to those visions, and how these reactions influence financial decisions.

Study participants expressed mixed emotions—ranging from fear to hope—about retirement planning. Some foresaw worsening climate conditions leading to hesitancy or indifference toward investments. Others anticipated sustainable developments motivating them to align investment strategies with their optimistic outlooks.

Parenthood emerged as a significant factor influencing financial planning among millennials in relation to climate change. Participants with children felt heightened climate stress but also increased motivation to secure a better future for their offspring.

Despite uncertainties, many participants adopted creative retirement planning approaches aiming for financial security for themselves and their families. Strategies included prioritizing investments in sustainable funds or companies practicing strong environmental governance or supporting community initiatives promoting climate resilience.

Participants also expressed a need for more transparency and guidance from employers, financial advisors, and policymakers on aligning financial goals with sustainability aspirations. These interests involve offering accessible options for environmentally conscious financial planning.

Helm observed varied responses: "We expected there to be a group of people who see climate change as a reason to save more while others want to use their resources now." However, she found proactive coping strategies encouraging among millennials who typically have lower retirement savings than previous generations due partly due partly due partly due partly due partly due partly due partly

While this study sheds light on millennial thought processes concerning climate change impacts on finances it acknowledges limitations such as its small sample size focused solely on financially engaged individuals potentially excluding diverse perspectives from different backgrounds or socioeconomic contexts

Future research could explore other generational views including Gen Zs' perception towards integrating climatic concerns into economic plans alongside examining cultural influences shaping individual responses