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 2025 Annual Retirement Study from the Allianz Center for the Future of Retirement™. To be sure, the number who are worried is increasing. In 2025, 55% of Black/African Americans said they have anxiety about rising costs from extreme weather. This is up from 50% last year. Still, Black/African Americans have a lower level of concern about this risk than Hispanic (68%) or Asian (66%) Americans.
This lower level of worry may lead to a lack of preparedness. Even though Black/African Americans are likely to experience the effects of extreme weather, few have discussed this risk with a financial professional. 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. Nearly half (46%) of 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.
