While the report comes from Great Britain, this issue is universal.

Climate change and resource scarcity may wipe out pensions industry

New report from Anglia Ruskin University shows that actuaries, charged with risk management in the financial sector, have ignored the greatest risk of all time

It's difficult to get one's head around, but the simple fact is that actuaries have so far failed to even begin to factor into their financial models the impacts of climate change and resource scarcity, apart from a narrow focus in some insurance products related to direct weather impacts. This is despite the fact that the issues have been known about for years and the consequences could spell disaster for their companies, never mind the rest of society.

... global warming and its associated challenges could wipe out the entire defined benefits pensions industry within 30 years if we don't rapidly change course.

The Resource Constraints research report, published by the Global Sustainability Institute at Anglia Ruskin University, is blunt and worth quoting: "The more extreme scenarios modelled represent financial disaster; the assets of pension schemes will effectively be wiped out and pensions will be reduced to negligible levels."

... the "more extreme" model talked about does not by any measure represent the worst-case scenario, but is based on business as usual, where governments and the financial markets remain focused on the short term, ... [emphasis mine]

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