Clients who are concerned about rising and unexpected costs from an extreme weather event in retirement may already be saving for it. While increasing their retirement savings can help insulate them from spending down their assets faster than anticipated, it’s important to protect those savings. Professional guidance could help them determine how to add a level of protection to their savings.
For example, Asian Americans worry more about the effect of extreme weather on their retirement income and are prioritizing saving. Half of Asian Americans (52%) said they worry about facing rising costs or the need to relocate due to the risks from extreme weather in the 2026 Annual Retirement Study* from the Allianz Center for the Future of Retirement®. Overall, 44% of Americans said the same.
This worry is leading Asian Americans to save more to address the rising costs related to extreme weather events or natural disasters in the future. The majority (73%) of Asian Americans said they are saving more or plan to save more to address the rising costs related to extreme weather events or natural disasters. Yet, just 7% of Asian Americans have discussed with their financial professional their concern about risks from extreme weather.
While saving more is one step toward weatherproofing a retirement plan, saving alone does not guarantee long-term financial security. Even though Asian Americans are likely to experience the effects of extreme weather, few have discussed the risk with a financial professional. This presents an opportunity for financial professionals to better support clients by discussing and addressing this concern within their client’s long-term financial plans.
Many Americans who have been impacted by extreme weather or a natural disaster said it had financial consequences. More than one in three (37%) Americans who have experienced extreme weather or a natural disaster said they used money they would have invested or saved to recover or protect themselves from extreme weather or natural disasters.
While a financial professional can’t control the weather, they can help their clients address the risk of extreme weather in their financial plan. But first, their clients need to understand the scope of the risk.
You can help ensure your clients are prepared
These risks make protected income even more valuable – and provide new conversation-starters with your clients. The overwhelming majority (98%) of Americans who have experienced an extreme weather event say creating a plan to address rising costs related to extreme weather would help ensure that they can financially support all the things they want to do in life.
To set your clients up to live the retirement they have been planning for, encourage them to consider how extreme weather could affect their retirement by impacting their cost of living, health, and where they choose to live in retirement.
Incorporating risk management strategies such as annuities and life insurance into their long-term financial plan can help address the risk of extreme weather. These strategies can help provide stability and ease worries about retirement – ensuring your clients are prepared to weather any storm.
