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3 reasons to talk to your clients about the weather

The weather is ordinary small talk. But the weather can also pose a risk to your clients’ retirement plans.

Natural disasters have become more frequent, more intense, and more costly. Extreme weather can erode your clients’ wealth – just like inflation and rising health care costs. People who are hit by extreme weather often need to pay for recovery efforts, such as repairing their homes after a storm. Even those who are not directly affected may incur increased costs for insurance, taxes, and energy. In the end, extreme weather can rain on your clients’ retirement plans.

Here are three reasons to talk to your clients about the weather.  
1

Americans are worried about extreme weather affecting their finances

Americans are noticing that extreme weather can inhibit their ability to achieve their long-term financial goals. The majority of Americans (56%) worry about the rising costs and financial effects of extreme weather events, according to the 2024 Annual Retirement Study* from Allianz Life. What’s more, one in four (25%) rank rising costs, loss of insurance, and damages due to extreme weather among the top three risks to their retirement.

While many worry about the risk of extreme weather, few have talked about this worry with a financial professional. Just 10% of Americans working with a financial professional say they have discussed this concern. But nearly half (46%) of those who haven’t talked to their financial professional about this worry are interested in doing so.
2

Experiencing a natural disaster can be a real financial hit 

Most Americans are exposed to weather risks. While many popular retiree destinations are prone to natural disasters, these events occur across the country.

In the study, nearly two in five (39%) Americans affected by a natural disaster used money intended for savings or investments to recover from or protect against extreme weather. This had long-term consequences. Of those affected by a natural disaster, 21% had to change their retirement plans due to the impacts of extreme weather.

And even those who are not directly hit by a natural disaster can be burdened by increased cost-of-living expenses, such as housing and insurance. In some places, housing insurance costs are rising even faster than inflation.
3

You can help ensure your clients are prepared

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. You can help them consider the impact of extreme weather on their cost of living, health, and where they choose to live in retirement.

With this knowledge, you can help them incorporate risk management strategies into their long-term financial plan. These strategies can help provide stability and ease worries about retirement – ensuring your clients are prepared to weather any storm.
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Talk to your clients about weatherproofing their retirement

We have created materials that you can use with your clients – including a client seminar with a customizable invitation and other supporting materials.

*Allianz Life conducted the 2024 Annual Retirement Study online survey in February and March 2024 with a nationally representative sample of 1,000 individuals age 25+ in the contiguous U.S. with an annual household income of $50K+ (single)/$75K+ (married/partnered) OR investable assets of $150K+.

This content is for general educational purposes only. It is not intended to provide fiduciary, tax, or legal advice and cannot be used to avoid tax penalties; nor is it intended to market, promote, or recommend any tax plan or arrangement. Allianz Life Insurance Company of North America, its affiliates, and their employees and representatives do not give legal or tax advice. Customers are encouraged to consult with their own legal, tax, and financial professionals for specific advice or product recommendations.

Products are issued by Allianz Life Insurance Company of North America, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. In New York, products are issued by Allianz Life Insurance Company of New York, 1633 Broadway, 42nd Floor, New York, NY 10019-7585. Variable products are distributed by their affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. Only Allianz Life Insurance Company of New York is authorized to offer annuities and life insurance in the state of New York.

For financial professional use only – not for use with the public.