Gen-Xs to pay for climate change

Retiring Generation-X workers will take a hit to their super of up to $1300 to pay for the effects of climate change unless the Government takes more action sooner, new research has found.

The Climate Institute study shows that the longer the Government waits before introducing a carbon trading scheme, the bigger effect it will have on company profits and share values. This in turn could affect the value of superannuation funds’ investment portfolios.

“Because stock valuations are calculated on short term value, no one has looked ahead to measure what impact carbon pricing might have on stock values. Our modelling investigates that, and shows that if we are forced to take sudden action later, the adjustment in the stockmarket will adversely effect the superannuation payments of thousands of Australians,” Climate Institute chief executive John Connor says.

According to the report, delayed action will mean Baby Boomers will escape any harm to their retirement wealth, but the consequence will be that the following Generation-X, now aged 36 to 44, will bare the brunt of any change.

Workers retiring in the 2020s, especially women who have lower super savings because they have taken time out of the workforce to care for children, will be the most vulnerable to any drop in share value caused by the delayed introduction of a carbon trading scheme.

Mike Preston