Most American are concerned that extreme weather could affect their future finances, but few discuss their fears with a financial professional, according to Allianz Life.
The 2024 Annual Retirement Study by Allianz Life Insurance Company of North America found that 56% of Americans say they are fearful rising costs, financial losses or health effects from extreme weather events or natural disasters.
Among the generations, 70% of millennials are more likely to have this worry, compared with 53% of Gen Xers and 32% of baby boomers. Hispanic respondents (66%) are more likely to be anxious than Asian American (57%), Black (50%) and white (55%) respondents.
A quarter of respondents (25%) ranked rising costs, insurance loss or damage from extreme weather or natural disasters among the top three risks to their retirement income. This was the same or higher than concerns like taxes, debt or caregiving responsibilities. But only 10% who expressed concerns about extreme weather have discussed it with a financial professional.
Those who have been financially impacted by extreme weather are more likely to have a written financial plan and strategy to protect themselves from future risks. Only 14% of those who have been impacted lack such a plan, compared with 48% who have not been financially impacted.
“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 Lorinda Niemeyer, head of sustainability, Allianz Life. “This can serve as an important lesson for others, too.”
