Insuring the Future: Climate Change Scenarios and Pensions for Different Cohorts

Climate change is reshaping the financial risk environment for insurers and long-term financial institutions, introducing new uncertainties that challenge traditional models. Pension funds, with their long-term investment horizons, are particularly exposed to the financial impacts of climate transitions. Designed to provide income in retirement, these funds play a key role in supporting public policy goals around financial security. This seminar will begin with a general overview of how climate change can affect pension systems before focusing on the implications of four specific climate scenarios—Current Policies, Below 2°C, Net Zero 2050, and Delayed Transition—for pension outcomes across generational cohorts.