Attracting Retirees to Lawrence/Douglas County

 

BRIEF

 

~There are just a lot of perks [for older adults] here in Lawrence.  It’s a retirement community, if you ask me.~ 

(Native Kansan and longtime Lawrence resident in her early 80’s. She lives in a local assisted living facility.)

 

 

Introduction

 

Aging populations have captured the attention of policy-makers, economists, and planners at the global, national, and state levels.  It is inevitable that Douglas County will also feel the impact of an aging population that is growing in size. The Vantage Pointe Foundation*, Lawrence Chamber of Commerce and other community organizations have initiated steps to prepare for and capitalize on changes that will accompany this population trend. This foresight will ensure that Lawrence and Douglas County will be strengthened, not burdened, by these changes.

 

 

Methods

 

The Office on Aging and Long Term Care (OALTC) in the School of Social Welfare at the University of Kansas compiled this data through a contract with the Vantage Pointe Foundation. The OALTC reviewed the professional literature, newspaper/ magazine articles, and sought out the experiences of other communities to understand the issues of promoting Lawrence as a premier retirement community. We are also interviewing older adults so we understand their experiences of living in Douglas County as they age.

 

Why Attract Retirees to Lawrence and Douglas County?

 

The 77 million baby boomers have been trendsetters throughout their lives, and their retirement choices are expected to be no different. Of the baby boomers who will retire annually for the next 18 years, economists predict at least 400,000 will relocate to another state each year. These retirees are especially likely to move to towns and small cities within driving distance of metropolitan areas.

 

College communities, such as Lawrence, are perfectly positioned to take advantage of this emerging retiree market as they provide many of the community amenities that baby boomers desire. Other college communities (Ft. Collins, CO) have been very successful in marketing their communities to older adults and the results to the community have been very positive from both the economic and cultural standpoint.

 

Communities that prepare for this aging explosion will benefit from the substantial civic, social and financial capital that older adults bring.

 

Retiree migration has long been recognized as an important factor in local and regional economic development. The influx of new retirees changes the communities in which they live by boosting the local economy and increasing the tax base. On average, retirees—especially those with the wherewithal to relocate—are healthier and wealthier, require fewer social services, they create jobs in medical and other service industries, and they volunteer in the community or start small businesses.

 

Retirees have relatively steady incomes; apportion of which is used for discretionary spending. The impact of this discretionary spending usually occurs at the local level, leading to increased economic development and job creation in the community where the retirees live.

 

What is the Potential Economic Impact of Attracting Retirees?

 

The 50+ market is the fastest growing market sector and the wealthiest market sector in the country. This market controls half of the country’s discretionary income. Nationally, members of the 50+ market have:

 

·         $35,000 average annual salary ($70,000 per couple)

·         77% of the country’s personal financial assets

·         80% of the savings deposits

·         68% of all money market accounts

·         50% of all corporate stocks

·         48% of all new domestic automobile purchases

           

Some of the benefits of attracting retirees to Douglas County will result in increases to the following sectors of the local economy:

 

·         tax base (retail and property)

·         bank deposit base and capital pool

·         retail sales

·         charitable contributions

 

Text Box: Examples of similar initiatives: v In a recent study in Mississippi regarding the economic impact of its1998 project to attract seniors found that the State had netted 7,500 retirees, which generated approximately $194 million per year in additional tax revenue and 2.320 full time jobs. v In Georgia a typical retired couple has the same economic impact to a community as the attraction of 3.4 manufacturing jobs. Researchers found that over 15,000 people age 65 and over moved to Georgia in 2005, bringing a combined $408 million in income and associated spending power.

In addition to financial assets, older adults contribute to the community in many ways. They provide wisdom and expertise in a variety of areas that enhance the pool of talent for workers and volunteers.  Many, such as the two who provided the quotes shown here, volunteer in the community on a regular basis. Many will become year-round residents; or live here when KU students return to their hometowns. This lends stability to local business cycles.

 

What are Potential Concerns of Attracting Retirees?

 

Many people believe that older adults increase the costs of public and private services and make few contributions to community income. Local officials and developers may perceive the elderly as a drain on community resources. However, recent research shows that the older population is an important source of income that adds to local sales and service revenue. According to the Senior Journal, when seniors move into an area they create one job for every 1.8 retirees.

 

Some people believe that the majority of older adults require ongoing and expensive medical and social services. However, the majority of people over age 80 have no physical limitations—they are healthy and active. Only 27% of those ages 80 and over who live in the community have three or more functional limitations like difficulty walking across a room or getting in and out of a chair. To put the issue of health and social services into perspective, it is important to understand a few things about older adults’ use of these services. The period of time near the end of life when people may need services has shortened. Less expensive service options (e.g., home and community based services) now provide alternatives to more expensive care in skilled nursing facilities.  In studies in Florida and Arizona the benefits of older adults brought more revenue than the cost of services and their per capita income was 25% higher than citizens ages 18-49. In addition, OALTC research has shown that in Kansas, older adults with multiple and severe functional limitations tended to need services for 3-6 months and then were able to remain living in the community without services—sometimes for years.

 

Another concern that some people might have about attracting older adults to a community is that the seniors would vote against public school improvements and other issues affecting younger generations. However, many people approach retirement while still caring for children and parents (“sandwich generation”). Analysis of taxing and spending patterns among Florida counties impacted by elder migration since the 1960s, however, did not indicate that this “politics of aging” had materialized. These older adults care about issues affecting children, youth, and the elderly and they typically vote for the greater good of the community.

 

Who Might Move Here? Why Lawrence, Kansas?

 

Douglas County is in a good position to attract older adults who move around retirement age for community amenities.  Lawrence is situated to attract people from outside of the county or the state because it is a familiar place to those who attended college here. One man who intentionally moved to Lawrence for retirement referred to the town as a “retirement community” during his interview. He told us why:

 

~Like I said, [Lawrence] has everything we wanted.... We have access to the metro area if need be, for the arts, but you know there’s a lot of that in Lawrence. I think it’s an excellent community.  I wouldn’t have a problem recommending anyone retire here, to be honest.~

(Married male in his mid-60’s. He moved to Lawrence and built a new home here after retirement.)

 

People who move around retirement age may be attracted to communities with nice weather or golf courses, or access to the arts and other cultural opportunities. College towns are considered a top location for retirees who are move for community amenities, giving strong competition to more traditional retirement locations such as Florida.  Lawrence has a variety of community amenities desired by new retirees—it is a small college town, and it is close to a metropolitan area and a major airport.  Retirees that we interviewed have told us that they like living in a town with a youthful, college atmosphere; cultural events; and as one man stated, “a winning sports team.” We also have a wide range of opportunities for older adults to be socially, cognitively, and physically active: libraries, outdoor activities, shopping, museums, sporting events, religious institutions, cultural events, and the arts. High quality healthcare is available in town and in nearby Kansas City. A publication from the National Association of Baby Boomer Women explains the attraction of university communities this way, “College Towns: For those who would rather hit the books than hit a golf ball, it’s worth consideration.” One cannot help but note that Lawrence has both the college and golf courses. 

 

Another aspect of living in Lawrence is a cost of living that is lower than the national average. In Kansas, Lawrence has higher housing costs than elsewhere in the state. However, in comparison with other parts of the country, the cost of living is lower than the national average. In 2008 City-Data listed the cost of living index in Lawrence as 86.8, as compared to the U.S. average of 100. 

 

In summary, Lawrence is in a good position to attract early stage retirees who are moving to be closer to community amenities. The older adults who would be more likely to more here for this reason would be in their 50’s and 60’s, and have a history with the university or a local industry. They would be attracted by Douglas County’s wide range of opportunities to remain socially, intellectually, and physically active.

 

Conclusion

 

Lawrence possesses community characteristics that create the opportunity for a unique economic development opportunity. We recommend that Lawrence begin to take the steps to develop and market itself as a premier retirement community. This would include active recruitment of early-stage retirees in their 50’s and 60’s in combination with other activities to enhance the community’s appeal to these retirees. Greater appeal would result from: 1) community ownership of the local aging population and recognition of the assets they bring to Douglas County, 2) creative thinking by the business community about products and services that appeal to older adults, 3) consideration of older adult needs and preferences as community leaders and planners make policy decisions, and 4) the community-university-business partnerships to develop and promote our community amenities. These actions would contribute to an innovative and successful economic plan for Lawrence and Douglas County.

 

References & Bibliography

 

Available upon request.

 

 

* Vantage Pointe Foundation is an independent, non-profit corporation founded in 2008 with an initial grant from Douglas County Senior Services, Inc. (DCSS). Its purpose is to provide resources, fund raising and development support for DCSS and aging-related organizations.