Pension funds carry implications on citizens wellbeing in their retirement years and countries’ growths, rendering changes to them following natural disasters of great importance. Using administrative data that comprises a 10 percent random sample of the Australian population and a natural experimental design, we investigate the effects of natural disasters on retirement savings in the aftermath of the 2010–2011 Queensland Floods. Our findings reveal that the flood results in an increase retirement savings by the more risk vulnerable individuals. We also present evidence that this effect is likely to be motivated by changes in background risk. Our results are robust to an array of robustness checks and satisfy the parallel trends assumption.