Sallie and John Reeves had enjoyed the comfort and beauty of their California ranch house for decades before landslides in the area destroyed their retirement dreams.
In February 2024, the couple began to hear creaking noises in their house and discovered cracks on the walls, according to the Wall Street Journal (1). Shortly after that, water began to pour through the ceiling in their bedroom and onto the bed.
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Then, after the roof was patched up, it happened again, forcing the couple to relocate to the guest bedroom for sleep. When that end of the house dropped nine inches and the property started to split in two, the couple began sleeping in the living room.
The neighborhood of Portuguese Bend, where Sallie and John live, was heavily impacted by landslides on the Palos Verdes Peninsula in 2024. This area is no stranger to slow-moving landslides, but several years of heavy rainfall significantly increased the rate of land movement last year.
Nearly two years after the couple’s home started falling apart, Sallie now sleeps in the two-car garage, which was renovated into a living quarters. After gas and electricity were cut off in her area, Sallie survives on a propane-fueled generator and a few solar panels. She spends most of her days gardening and visiting John at a nearby care facility.
All the while, she waits to learn whether a FEMA buyout will force her to leave her beloved home, which is now propped up on concrete blocks. After spending more than $10,000 trying to repair their house, Sallie and John may have to leave the only place they’ve called home since 1982.
As extreme as this situation may sound, it’s not uncommon for retirees in the era of climate change. But even with Mother Nature’s mayhem ramping up, not all retirees are adding the weather to their financial forecast.
Why hazard-prone retirement havens can be costly
According to the U.S. Department of the Treasury, climate-related catastrophes are becoming costlier.
Between 2018 and 2022, the U.S. incurred more than $609 billion in damages from weather and climate-related disasters (excluding floods). Researchers also noted that average home insurance premiums increased by 8.7% during this period (2).
These findings were even more pronounced in ZIP codes with higher-than-average risks for climate-related damages. Homeowners in these areas paid roughly $2,321 in premiums every year; for comparison, that’s 82% higher than those in areas with a lower risk for weather-related damages.
Of course, these figures assume that insurance companies still offer policies to those living in hazard-prone areas. According to the Yale School of the Environment, insurers have already canceled nearly two million homeowners policies in high-risk areas between 2018 and 2023 (3).
On top of insurance issues, retirees have to consider the rising costs for repairs and rebuilding. Data from Verisk showed a 3.97% increase in home repair and remodeling costs in Q1 2025 (4), surpassing the current core inflation of 3%.
For older homeowners living on a fixed income, all of these factors create significant safety and financial risks. And, ironically, the property that many homeowners count on as a retirement safety net could become a liability in areas most impacted by climate change.
Yet despite these dire statistics, survey data shows that not everyone factors climate change into their retirement decisions. According to a LendingTree survey, 51% of American consumers are concerned about climate-related risks to their properties, with 17% stating they’ve declined a purchase specifically due to climate risk (5).
So, even though more people seem to be paying attention to Mother Nature’s wrath, it’s not yet a key driver when choosing a retirement destination.
Read More: Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
How to stormproof your retirement location
There’s a lot to consider when looking for the perfect retirement destination, and sometimes emotions can overpower economics. However, as recent reports on climate change indicate, it’s essential to at least consider the disastrous effects of weather events in your retirement planning.
For retirees on fixed incomes, the stakes are extremely high. It only takes one major disaster or sudden insurance jump to quickly erode savings. While climate risk shouldn’t dominate every decision, it should sit alongside other concerns like cost of living, access to health care and proximity to family when considering retirement goals.
It may be impossible to predict or change the weather, but there are ways to create a more predictable retirement plan. First, start by comparing local insurers and their policies for weather-related damages. You can also consider working with smaller regional carriers that may offer more attractive rates in specific ZIP codes. There may also be state-backed “last resort” programs that can fill the gaps if private insurers pull out of your area.
Look closely at deductibles, exclusions and whether your policy covers replacement cost rather than actual cash value. If you live in a high-risk area, ask insurers about mitigation discounts (upgrading roofs, clearing defensible space or installing water sensors), which can potentially lower premiums.
Beyond securing the best insurance for natural disasters, it’s crucial to maintain a strong emergency fund as a first line of defense. Set aside enough to cover temporary housing, deductibles, essential repairs and basic living costs for three to six months. For retirees, having this buffer offers peace of mind and prevents the need to tap into long-term savings or take on high-interest debt in an emergency.
With these safeguards in place, retirees have extra breathing room to weather the storms of today’s increasingly hazard-prone world.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The Wall Street Journal (1); U.S. Department of the Treasury (2); Yale School of the Environment (3); Verisk (4); LendingTree (5)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.