Why clients really want to talk to their advisor about the weather

investmentnews.com:

Weather is a common component of small talk, but few advisors would prioritize it in a retirement planning conversation with their clients. That could be a mistake.

Extreme weather events and other natural disasters are becoming more common and as well as impacting insurers, they are likely to drive up costs for consumers, something that could be particularly challenging for retirees on fixed incomes.

A new report from Allianz Life highlights the concern across age groups about how retirement savings may be affected by these events, with 56% of respondents saying they are anxious about factors including rising costs, financial losses, and even health effects. Millennials are most concerned (70%) compared to Gen Xers (53%), or Boomers (23%).

“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.”

Despite 25% of respondents ranking concerns around rising costs, loss of insurance, or damages due to extreme weather or natural disasters being a risk to their retirement income – at least as concerning as taxes, debt, and caregiving responsibilities – only 10% have spoken about this with a financial advisor.

However, more than eight in ten said that having that conversation and including mitigation in their financial plans would ensure they will have the finances necessary to support what