Danny ChenWhen it comes to financial planning, people from Gen Y and other future generations are a group of people with different behaviors.
They are the first few generations who will receive unprecedented intergenerational wealth via inheritance, and the group of people who can feel the negative climate impacts when they retire.
According to the Financial Planning Standard Board(FPSB) study, over 50% of them will receive major financial support of over $250,000USD from previous generations. 80% of the people prefer to invest in companies that have some purpose beyond profits. It’s a good sign; however, as all investors know, investment is not revenue. Without responsible consumption from everyday customers, no business is able to operate in the long term.
We need the market demands from users who will pay for the products/services with positive climate impacts, which relates to our spending habits. Investing itself cannot solve the climate transition problem. To solve the problem systemically, we need a holistic financial planning that considers various aspects of our personal finances to achieve it.
Most of the current financial planning services focus on the customer’s financial information only, which might create potential problems if negative climate risks are not factored into long-term planning.
It will create a false confidence that people may overestimate their goal success rate when they retire.
