Climate risk and retirement savings

Hyungsoo Kim; Catalina Estrada Mejia; Marcel Zeelenberg

doi:10.7759/s44404-025-06652-2

Climate risk and retirement savings

Hyungsoo Kim^*
, Catalina Estrada Mejia
, Marcel Zeelenberg

^*Corresponding author for this work

Social Psychology

Research output: Contribution to journal › Article › Scientific › peer-review

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Abstract

Climate change has caused both substantial short and long-term financial impacts on individuals and families. Little research, however, has examined its financial consequences on retirement savings. This study explores the relationship between climate risk (CR) and retirement wealth, and related pathways via risk aversion and regret with 1,438 Dutch respondents. Findings show that CR is positively related to risk
aversion and avoidance of regret, and more savings for retirement. The findings indicate that CR is a relevant determinant of savings for retirement, but it is inconclusive that more savings is through precautionary motive or future regret.

Original language	English
Article number	es44404-025-06652-2
Number of pages	15
Journal	Cureus Journal of Business and Economics
Volume	2
DOIs	https://doi.org/10.7759/s44404-025-06652-2
Publication status	Published - 31 Oct 2025

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 13 Climate Action

Keywords

Climate Change
Household finance
retirement savings
precautionary motive
avoidance of regret

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10.7759/s44404-025-06652-2Licence: CC BY

2025 CJBE Kim Estrada-Mejia Zeelenberg--CLIMATE RISK AND RETIREMENT SAVINGSFinal published version, 404 KBLicence: CC BY

Cite this

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AU - Estrada Mejia, Catalina

AU - Zeelenberg, Marcel

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N2 - Climate change has caused both substantial short and long-term financial impacts on individuals and families. Little research, however, has examined its financial consequences on retirement savings. This study explores the relationship between climate risk (CR) and retirement wealth, and related pathways via risk aversion and regret with 1,438 Dutch respondents. Findings show that CR is positively related to risk aversion and avoidance of regret, and more savings for retirement. The findings indicate that CR is a relevant determinant of savings for retirement, but it is inconclusive that more savings is through precautionary motive or future regret.

AB - Climate change has caused both substantial short and long-term financial impacts on individuals and families. Little research, however, has examined its financial consequences on retirement savings. This study explores the relationship between climate risk (CR) and retirement wealth, and related pathways via risk aversion and regret with 1,438 Dutch respondents. Findings show that CR is positively related to risk aversion and avoidance of regret, and more savings for retirement. The findings indicate that CR is a relevant determinant of savings for retirement, but it is inconclusive that more savings is through precautionary motive or future regret.

KW - Climate Change

KW - Household finance

KW - retirement savings

KW - precautionary motive

KW - avoidance of regret

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DO - 10.7759/s44404-025-06652-2

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JO - Cureus Journal of Business and Economics

JF - Cureus Journal of Business and Economics

M1 - es44404-025-06652-2

ER -

Climate risk and retirement savings

Abstract

UN SDGs

Keywords

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