By Kate Dore
- The threat of climate change is affecting some older Americans’ plans for retirement.
Some are rethinking their location as extreme weather increases the cost of living.
But climate change isn’t a concern for all retirees, advisors say.
The threat of climate change is shifting some older Americans’ retirement plans.
Extreme weather such as hurricanes, flooding, freezing temperatures and wildfires has prompted some to rethink where they will spend their golden years.
“Clients are seeing it for themselves and starting to adjust plans as a result,” said John McGlothlin III, a certified financial planner with Southwest Retirement Consultants in Austin, Texas.
Another client in Austin suffered from the region’s deep freeze and power outages in February. When pipes froze and their condo flooded, they started to question their long-term plans, McGlothlin said.
With the possibility of another cold snap, more home damage or future displacement, they are reconsidering where they are living. But there’s a problem: The unit may not fetch the same price post-flood, he said.
While some retirees worry about the risks of hurricanes, deep freezes or wildfires, others are less concerned about climate change.
“From what I’ve seen over the last five to 10 years, extreme weather has not had a noticeable impact on retirement plans,” said Matt Stephens, a Wilmington, North Carolina-based CFP and founder of AdvicePoint.
Although Wilmington’s coastal area has experienced hurricanes and flooding, it’s still a popular location for retirees, particularly along the water, he said.
“People are clamoring for those properties,” said Stephens.