Extreme weather is costly to experience, and as natural disasters increase, so do associated costs. The risk of extreme weather can have significant financial consequences. While many Americans may not understand the true cost of experiencing an extreme weather event, a financial professional can help their clients consider the potential to be affected by extreme weather and how it could impact their finances.
Black/African Americans have a lower level of concern about extreme weather, according to the 2026 Annual Retirement Study* from the Allianz Center for the Future of Retirement®. In 2026, 53% of Black/African Americans said they have anxiety about rising costs, financial losses, or even health effects from extreme weather or natural disasters. Meanwhile, 61% of Americans overall hold this concern.
This lower level of worry may lead to a lack of preparedness. Black/African Americans are more likely to say that financial recovery from extreme weather or natural disasters is keeping them from saving as much as they would like for retirement. This presents an opportunity for financial professionals to better support clients by discussing and addressing this risk within their clients’ 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 strategy. But first, their clients need to understand the scope of the risk.
You can help ensure your clients are prepared
These risks make guaranteed 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 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 – helping ensure your clients are prepared to weather any storm.
