Many Americans worry the increase in extreme weather events could affect their financial future, but only one in 10 have broached the topic with a financial advisor, according to a report by Allianz Life Insurance Company of North America.
The “2024 Annual Retirement Study,” which polled 1,000 Americans online in February and March, found more than half of respondents (56%) indicating that they’re anxious about rising costs, financial losses or even the health effects from extreme weather-related disasters.
Millennials, the survey found, were by far the most likely to be concerned about the effects of the events on their finances and health, as 70% of that cohort said they were worried. Only 53% of Gen Xers said they were and 32% of baby boomers.
A quarter of the respondents rated the potential financial dent from extreme weather or natural disasters as one of the top three risks to their retirement income. But similar numbers worried about such concerns as taxes, debt and caregiving.
More than half of the respondents (56%) said they have some form of written financial plan that lays out their retirement or financial goals, and a majority (82%) also expressed interest in creating a plan to mitigate or cover the financial impact of extreme weather-related disasters to ensure a comfortable retirement.
“As natural disasters become more frequent, more intense and more costly, Americans are waking up to how this could pose a risk to their retirement nest egg,” said Lorinda Niemeyer, head of sustainability at Allianz Life, in a statement. “It’s not just the recovery costs after a disaster strikes. For many, extreme weather is increasing daily costs of living, insurance costs and other ongoing expenses. And those costs are tough to absorb if we don’t plan for them.”
Niemeyer added that seeking advice from 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.”