Americans Worry Extreme Weather Will Rain on Their Retirement
Allianz Life study finds few have a plan in place to address the rising costs of extreme weather
KEY FINDINGS:
- 56% say they have anxiety about rising costs, financial losses, or even health effects from extreme weather events or natural disasters
- 25% ranked risks of rising costs, loss of insurance, or damages due to extreme weather or natural disasters as one of the top three risks to their retirement income
- 82% say creating a plan to mitigate or cover financial implication of external events such as extreme weather or natural disasters would help ensure that they could financially support all the things they want to do in life
More than half (56%) of Americans say they have anxiety about rising costs, financial losses, or even health effects from extreme weather events or natural disasters. Millennials (70%) are more likely to have this worry than Gen Xers (53%) or boomers (32%). More Hispanic respondents (66%) are anxious than Asian/Asian American (57%), Black/
“We see extreme weather almost daily in the news,” says
One in four Americans (25%) ranked risks of rising costs, loss of insurance, or damages due to extreme weather or natural disasters as one of the top three risks to their retirement income. This was the same or higher than same or higher than concerns like taxes, debt, or caregiving responsibilities. Yet, just 10% who have concerns about extreme weather have discussed it with a financial professional.
At the same time, 82% say creating a plan to mitigate or cover financial implication of external events such as extreme weather or natural disasters would help ensure that they could financially support all the things they want to do in life.
“Extreme weather has the potential to erode wealth just like other risks to a retirement strategy like inflation and increasing medical costs,” Niemeyer says. “A financial professional can help create a holistic retirement strategy that addresses the financial costs and risks of extreme weather to help protect your financial well-being and overall lifestyle.”
Lessons learned
Americans who have been financially impacted by extreme weather are more likely to have a written financial plan and strategy to protect themselves from risks in the future. Nearly half of Americans (48%) who have not been financially impacted by extreme weather do not have a written financial plan. Meanwhile, just 14% of those who have experienced extreme weather said the same. This group is making plans to protect themselves against this risk in the future. More than one in three (36%) of those who have been financially impacted by extreme weather say they have included the potential implications of extreme weather or natural disasters into their financial retirement plan. Just 12% who have not experienced this said the same.
“Americans who have experienced extreme weather and its effect on their finances have learned a hard lesson and now want to make sure they are financially prepared for another natural disaster to strike and protect themselves against this risk in the future,” says Niemeyer. “This can serve as an important lesson for others, too.”
*Allianz Life conducted the 2024 Annual Retirement Study online survey in February and
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