Most Americans are fretting over the risks extreme weather events can pose to their plans for retirement, according to Allianz Life Insurance’s annual retirement study.

“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,” said Lorinda Niemeyer, Allianz Life’s head of sustainability, in a statement. “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.”

The Allianz study was published just before much of the Southeastern U.S. started dealing with the threat of flooding from Tropical Storm Debby, which came ashore last Monday in Florida as a Category 1 hurricane. Debby is the fourth named storm of the 2024 Atlantic hurricane season.

According to the study, which polled 1,000 individuals aged 25 and older in the contiguous U.S., 56% of Americans say they have anxiety about rising costs, financial losses or health issues due to extreme weather events. Millennials are more likely to worry about them than other generations, with 70% of Millennials worrying about the effect natural disasters will have on their retirement portfolios, followed by 53% of Generation Xers and 32% of Baby Boomers.

The study also found that 66% of Hispanic respondents are nervous that their retirement plans are not weatherproofed for major natural disasters, followed by 57% of Asian Americans, 55% of white Americans, and 50% of African Americans.

Approximately 25% of those polled listed rising costs, loss of insurance or damages due to extreme weather or natural disasters as one of the top three risks they are concerned will hurt their retirement income. Although that percent is equal to or higher than concerns about taxes, debt or caregiving responsibilities, the survey found that only 10% have discussed weather-related concerns with a financial professional, despite 82% saying that creating a plan to hedge against extreme weather would help protect their nest egg.

“Extreme weather has the potential to erode wealth just like other risks to a retirement strategy like inflation and increasing medical costs,” said Niemeyer.

The study also found that those surveyed who have been impacted financially by extreme weather are more likely to have set up a financial plan to help avoid or mitigate future risks. Meanwhile 48% of those polled who have not been financially impacted by extreme weather do not have such a plan in place.

“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,” said Niemeyer. “This can serve as an important lesson for others, too.”

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