garetiree

Attracting Retirees: What Do We Know? What Should We Know?: 

Attracting Retirees: What Do We Know? What Should We Know? Erik R. Pages EntreWorks Consulting Georgia Tech Retirement Community Workshop January 26, 2006 Valdosta, GA

Today’s Presentation: 

Today’s Presentation Why Attract Retirees? What Do We Know? What Works? Who Does It Well? Best Practices around the US What Should We Know? What Could We Be Doing?

Why Attract Retirees?: 

Why Attract Retirees? The Basic Demographics: Growing Impact/Size of Elderly Cohort Population: Proportion over 65 (2000)-16.5% Population: Proportion over 65 (2030)-24.2%

They’re Not Really Retiring: 

They’re Not Really Retiring ¾ of Boomers plan to work into retirement 25% need money 75% to avoid boredom, give back, or finance leisure activities Growing Interest in Self-Employment 16.4% of over-50s 10.4% of total workforce

And They Have Money!!!: 

And They Have Money!!! Coming Intergenerational Wealth Transfer Estimates of $10-50 Trillion Migrating Retirees among Wealthiest 50% earn more than $60,000 per year 25% earn more than $100,000 per year Baby Boom Buying Power (2007): $2 trillion

They Don’t Strain Local Services: 

They Don’t Strain Local Services Little effect on schools, criminal justice or social service systems Effect on health care---can stimulate infrastructure development Mixed effect on local tax and spending policies Yet, overall, a net benefit for local economies! (over the short to medium term)

But, is it a “Free Lunch?”: 

But, is it a “Free Lunch?” Cautionary Notes Most Migrants are the “Young Old” Declining Economic Impacts with Age Little Data on Long-Term Effects Migrants can drive up housing prices Migrants may be less willing to support local schools and other amenities for younger population Lower wages paid by retiree-serving sectors

Slide8: 

What Do We Know? I. The Initial Sell Retiree Attraction Follows Tourism Pull Factors are Critical Climate Quality of Life/Rural Character Health Services Cost of Living

What Do We Know?II. What They Want and Why They Stay: 

What Do We Know? II. What They Want and Why They Stay Less research on this point Amenity/Pull factors still critical Personal Values---priority on recreation Hometown Returnees Strategy will work best in regions with strong scenic amenities and quality health care/social services

Top States for Retirees* : 

Top States for Retirees* Florida 394,254 Arizona 134,593 California 127,757 Texas 100,700 North Carolina 74,937 Georgia (No. 9) 57,992 * Number of In-Migrating Retirees (age 60 and up) between 1990 and 2000. (Source: Dr. Mark Fagan, Based on Census Data)

Best Practices: Who Does This Well?: 

Best Practices: Who Does This Well? Mississippi Hometowns Program State certifies communities as “retiree-friendly” 22 counties now certified IMPACT: $194 million (2002 dollars) & 2,320 jobs per year (1995-2000) Similar efforts in TX, LA

More Best Practices: State Level: 

More Best Practices: State Level Alabama Advantage Primarily focused on marketing and training North Dakota Operation Back Home Again—targets former residents South Carolina Active use of incentives (e.g. SC Reverse Mortgage Act, no tax on retirement income, free tuition at state schools)

More Best Practices: Local Level: 

More Best Practices: Local Level Triple Crown Hometowns (GA) www.georgiaretire.com Sequim (WA) (www.cityofsequim.com) Thomasville (GA) (www.thomasvillechamber.com) Sedan (KS) 50,000 annual visitors Newton (MA) Lasell Village (www.lasellvillage.com) at Lasell College

What Should We Know?: 

What Should We Know? What Happens as In-Migrants Age? What Motivates Them to “Give Back” in new Communities? Bridging the Local-Newcomer Divide What is the best way to tap their expertise, skills and resources?

Slide15: 

What Could We Be Doing? Expanding Base of Local Volunteers Experience Corps (www.experiencecorps.org) Creating New Mentoring Programs Creating New Sources for Company Finance New Angel Networks? (www.angelcapitalassociation.org)

Other Resources: 

Other Resources Aging in Place Initiative: Program seeks to build communities that are good places to grow old. (http://aipi.n4a.org/) American Association of Retirement Communities (www.the-aarc.org): Focused on “promoting economic development through retiree attraction.” Experience Corps (www.experiencecorps.org): Seeks to encourage community service by those over the age of 55. Retirement Living Information Center (www.retirementliving.com)

For More Information:: 

For More Information: Erik R. Pages EntreWorks Consulting 3407 North Edison Street Arlington, VA 22207 703-237-2506 www.entreworks.net epages@entreworks.net