Americans Worry Extreme Weather Will Rain on Their Retirement
30 Julio 2024 - 9:42AM
Business Wire
Allianz Life study finds few have a plan in
place to address the rising costs of extreme weather
KEY FINDINGS:
- 56% say they have anxiety about rising costs, financial losses,
or even health effects from extreme weather events or natural
disasters
- 25% ranked risks of rising costs, loss of insurance, or damages
due to extreme weather or natural disasters as one of the top three
risks to their retirement income
- 82% say creating a plan to mitigate or cover financial
implication of external events such as extreme weather or natural
disasters would help ensure that they could financially support all
the things they want to do in life
The majority of American are anxious about the effect extreme
weather could have on their financial future yet few are talking
about it with a financial professional, according to the 2024
Annual Retirement Study* from Allianz Life Insurance Company of
North America (Allianz Life).
More than half (56%) of Americans say they have anxiety about
rising costs, financial losses, or even health effects from extreme
weather events or natural disasters. Millennials (70%) are more
likely to have this worry than Gen Xers (53%) or boomers (32%).
More Hispanic respondents (66%) are anxious than Asian/Asian
American (57%), Black/African American (50%) and white (55%)
respondents.
“We see extreme weather almost daily in the news,” says Lorinda
Niemeyer, head of sustainability, Allianz Life. “As natural
disasters become more frequent, more intense and more costly,
Americans are waking up to how this could pose a risk to their
retirement nest egg. It’s not just the recovery costs after a
disaster strikes. For many, extreme weather is increasing daily
costs of living, insurance costs and other ongoing expenses. And
those costs are tough to absorb if we don’t plan for them.”
One in four Americans (25%) ranked risks of rising costs, loss
of insurance, or damages due to extreme weather or natural
disasters as one of the top three risks to their retirement income.
This was the same or higher than same or higher than concerns like
taxes, debt, or caregiving responsibilities. Yet, just 10% who have
concerns about extreme weather have discussed it with a financial
professional.
At the same time, 82% say creating a plan to mitigate or cover
financial implication of external events such as extreme weather or
natural disasters would help ensure that they could financially
support all the things they want to do in life.
“Extreme weather has the potential to erode wealth just like
other risks to a retirement strategy like inflation and increasing
medical costs,” Niemeyer says. “A financial professional can help
create a holistic retirement strategy that addresses the financial
costs and risks of extreme weather to help protect your financial
well-being and overall lifestyle.”
Lessons learned
Americans who have been financially impacted by extreme weather
are more likely to have a written financial plan and strategy to
protect themselves from risks in the future. Nearly half of
Americans (48%) who have not been financially impacted by extreme
weather do not have a written financial plan. Meanwhile, just 14%
of those who have experienced extreme weather said the same. This
group is making plans to protect themselves against this risk in
the future. More than one in three (36%) of those who have been
financially impacted by extreme weather say they have included the
potential implications of extreme weather or natural disasters into
their financial retirement plan. Just 12% who have not experienced
this said the same.
“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 Niemeyer. “This can serve as an important lesson for others,
too.”
*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+. The study
included an oversample of respondents who identified as
Black/African American (416 responses); Hispanic (398 responses);
Asian/Asian American (366 responses).
Guarantees are backed solely by the financial strength and
claims-paying ability of the issuing insurance company. Variable
annuity guarantees do not apply to the performance of the variable
subaccount(s), which will fluctuate with market conditions.
Products are issued by Allianz Life Insurance Company of North
America. Registered index-linked annuities are distributed by its
affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701
Golden Hills Drive, Minneapolis, MN 55416-1297. 800.542.5427
www.allianzlife.com This content does not apply in the state of New
York.
About Allianz Life Insurance Company of North America
Allianz Life Insurance Company of North America, one of the
Ethisphere World’s Most Ethical Companies®, has been trusted since
1896 to help millions of Americans prepare for financial
uncertainties and retirement with a variety of innovative risk
management solutions. In 2023, Allianz Life provided additional
value to its policyholders via distributions of more than $13.73
billion. Allianz Life is a leading provider of fixed index
annuities, registered index-linked annuities, and fixed index
universal life insurance. Additionally, Allianz Investment
Management LLC (AllianzIM), a registered investment advisor and
wholly owned subsidiary of Allianz Life, offers a suite of
exchange-traded funds (ETFs). Allianz Life and AllianzIM are part
of Allianz SE, a global leader in the financial services industry
with approximately 157,000 employees in more than 70 countries.
Allianz Life is a proud sponsor of Allianz Field® in St. Paul,
Minnesota, home of Major League Soccer’s Minnesota United.
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Sarah Hauer (763) 765-7341 sarah.hauer@allianzlife.com
@AllianzLife