Pollution likely to hit pension funds

This is quite a new harm of pollution that is revealed by a study conducted recently by Aled Jones of Anglia Ruskin University in Cambridge, UK, and his colleagues. Save our planet, save our pension; it is the title of the report which says if governments do not respond to environmental problems effectively they may lose the value of their funds invested in various schemes more particularly of pension funds. Ultimately the funds of the government allocated to dole out pensions to retirees may also drop in value by 2050.

How pollution will hit pensioners and pension funds?

Its premise is very simple. If governments keep on continuing paying less heed to environmental problems they eventually would have to allocate more funds for this purpose. Secondly their negligence to solve environment problems of their jurisdiction would raise the level of pollution. It will ultimately hit both industrial and agriculture sector of that country. As a result the overall economic development will receive a hit. The rate of return on investment would decline and pension funds will also be affected by the low rates of profit. Eventually pensioners would get lesser amounts and will have to spend retired life with limited funds. 

When it will happen?

pollution to hit pension fundsThe report says if the governments will not put the solution of environmental problems in its priority list then in current century most of the biggest economies would dwindle by 2100. So the economic slowdown will impact each sector more particularly the financial sector. As a result, pension funds would also dwindle because of the less growth in their profit rates. However, study predicts, in countries where environmental problems are already adverse their signs of permanent economic slowdown would appear by 2050. Therefore, pensioners in such countries would also feel the negative difference in their pension because of the impact of pollution.

Will pension funds really receive a hit?

Optimism always keeps us pinning hopes for the betterment meanwhile till a crisis fully affect our life. But the way pollution impacted our life so far is enough to make us believe that things will worsen in future. A few decades ago no one expected some day we have to put mask over our face to avoid air pollution. But now it is literally happening in China, Iran and most of the other countries intensely affected by the menace of air pollution. So it is not against wisdom to assume pollution may hit pension funds as well.

How to keep pension funds safe from pollution?

This is the main question we have to mull for now. Not only our governments but all the stakeholders have to talk frankly about the harms of pollution which have affected our life and those which would impact us in future. All the sectors have to play their roles for this purpose to save our economies from likely permanent slowdown and retain the growth level on upward track. For this purpose;
  • Our governments should adopt a long-term approach for the solution of environmental problems and avoid the habit of solving a pollution problem when it becomes so alarming.
  • Industries incorporate the environmental objectives in the list of their long-term goals to take permanent steps for their pollution control.
  • Communities must admit the fact that pollution is also one of the biggest causes of deaths in this world like other causes i.e. natural disasters, wars, epidemic etc. So they have to seriously act together to cap the level of pollution in every sector.

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