As extreme weather persists on a national and global scale, Americans are worried it may put a damper on their retirement, finds research by Allianz Life.
The firm’s 2024 Annual Retirement Survey found that 56% of Americans are anxious about rising costs, financial losses, and health effects following extreme weather events or natural disasters. A portion are mainly worried about the risks of rising costs, insurance loss, or damages that may come with dangerous weather, as 25% rank these as one of the top three risks to their retirement income. These concerns were equal to or higher than other concerns like taxes, debt, and caregiving responsibilities.
The frequency and strength of extreme weather events are growing due to changes in the climate, experts say. As a result, such events could diminish wealth and retirement income, similar to other influences like inflation and high medial costs, notes Allianz Life.
“We see extreme weather almost daily in the news,” says Lorinda Niemeyer, head of sustainability, Allianz Life. “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. 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.”
While 82% say creating a plan to mitigate their financial burden in the event of a natural disaster would reduce their concerns, only 10% say they’ve relayed worries to a financial professional.
Those who do express concerns and take action are likelier to have already experienced financial impacts due to grave weather, with just 14% of those who have encountered a natural disaster foregoing a written financial plan, Allianz Life reports. Furthermore, 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.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.