Could Your Retirement Be at Stake Because of Extreme Weather Events?

Various natural disasters and extreme weather events are impacting more people in recent years. They include everything from earthquakes, hurricanes, flooding, forest fires, volcanoes, and some have threatened more populated areas. The frequency of these events and other disasters is causing people of various ages to wonder if they can save enough for a comfortable retirement.
Until recently, most people’s retirement plans did not include the possibility of natural disasters. Now, when developing retirement plans, you must consider the possibility and how to counter inflation and the rising cost of medical coverage and long-term care insurance.
Some southern cities, such as Austin, Texas, had 28 more days of high heat than in 1970. Several of these cities (Myrtle Beach, South Carolina; Wilmington, North Carolina; Houston, Texas; and Charleston, South Carolina—which expects to see an increased loss of 100.4 percent) this year are expected to see more than a 50 percent increase in flood losses by 2050.
These things point to a reason to save more money for your retirement years, which should also include enough for an emergency fund. You need to have enough for your daily needs and bills, but you also must have a sizable fund for unexpected costs if you go through an extreme weather disaster. Because such an event could occur unexpectedly, keep the money out of a retirement account to avoid penalties.
An HSA is an excellent savings plan for some people because of its three ways to save money. All contributions are tax-deductible, money used for qualified medical expenses is not taxed, and money in the account grows tax-free. The cost of your health insurance premiums is also lower, but remember that your deductibles are higher.
Putting enough money away to cover the possible expenses of an extreme weather event needs to be started right away. Most likely, you should talk to a financial advisor to ensure that your retirement fund can cover these needs and enable you to have a comfortable retirement.