1. 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

2. 1/26/20062Copyright EntreWorks Consulting 2006 Today’s Presentation Why Attract Retirees?Why Attract Retirees? What Do We Know? What Works?What Do We Know? What Works? Who Does It Well? Best Practices around the USWho Does It Well? Best Practices around the US What Should We Know?What Should We Know? What Could We Be Doing?What Could We Be Doing?

3. 1/26/20063Copyright EntreWorks Consulting 2006 Why Attract Retirees? The Basic Demographics: Growing Impact/Size of Elderly CohortThe Basic Demographics: Growing Impact/Size of Elderly Cohort Population: Proportion over 65 (2000)-16.5%Population: Proportion over 65 (2000)-16.5% Population: Proportion over 65 (2030)-24.2%Population: Proportion over 65 (2030)-24.2%

4. 1/26/20064Copyright EntreWorks Consulting 2006 They’re Not Really Retiring ¾ of Boomers plan to work into retirement¾ of Boomers plan to work into retirement 25% need money25% need money 75% to avoid boredom, give back, or finance leisure activities75% to avoid boredom, give back, or finance leisure activities Growing Interest in Self-EmploymentGrowing Interest in Self-Employment 16.4% of over-50s16.4% of over-50s 10.4% of total workforce10.4% of total workforce

5. 1/26/20065Copyright EntreWorks Consulting 2006 And They Have Money!!! Coming Intergenerational Wealth TransferComing Intergenerational Wealth Transfer Estimates of $10-50 TrillionEstimates of $10-50 Trillion Migrating Retirees among WealthiestMigrating Retirees among Wealthiest 50% earn more than $60,000 per year50% earn more than $60,000 per year 25% earn more than $100,000 per year25% earn more than $100,000 per year Baby Boom Buying Power (2007): $2 trillionBaby Boom Buying Power (2007): $2 trillion

6. 1/26/20066Copyright EntreWorks Consulting 2006 They Don’t Strain Local Services Little effect on schools, criminal justice or social service systemsLittle effect on schools, criminal justice or social service systems Effect on health care---can stimulate infrastructure developmentEffect on health care---can stimulate infrastructure development Mixed effect on local tax and spending policiesMixed effect on local tax and spending policies Yet, overall, a net benefit for local economies! (over the short to medium term)Yet, overall, a net benefit for local economies! (over the short to medium term)

7. 1/26/20067Copyright EntreWorks Consulting 2006 But, is it a “Free Lunch?” Cautionary NotesCautionary Notes Most Migrants are the “Young Old”Most Migrants are the “Young Old” Declining Economic Impacts with AgeDeclining Economic Impacts with Age Little Data on Long-Term EffectsLittle Data on Long-Term Effects Migrants can drive up housing pricesMigrants can drive up housing prices Migrants may be less willing to support local schools and other amenities for younger populationMigrants may be less willing to support local schools and other amenities for younger population Lower wages paid by retiree-serving sectorsLower wages paid by retiree-serving sectors

8. 1/26/20068Copyright EntreWorks Consulting 2006 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

9. 1/26/20069Copyright EntreWorks Consulting 2006 What Do We Know? II. What They Want and Why They Stay Less research on this pointLess research on this point Amenity/Pull factors still criticalAmenity/Pull factors still critical Personal Values---priority on recreationPersonal Values---priority on recreation Hometown ReturneesHometown Returnees Strategy will work best in regions with strong scenic amenities and quality health care/social servicesStrategy will work best in regions with strong scenic amenities and quality health care/social services

10. 1/26/200610Copyright EntreWorks Consulting 2006 Top States for Retirees* Florida394,254Florida394,254 Arizona134,593Arizona134,593 California127,757California127,757 Texas100,700Texas100,700 North Carolina 74,937North Carolina 74,937 Georgia (No. 9)57,992Georgia (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)

11. 1/26/200611Copyright EntreWorks Consulting 2006 Best Practices: Who Does This Well? Mississippi Hometowns ProgramMississippi Hometowns Program State certifies communities as “retiree-friendly”State certifies communities as “retiree-friendly” 22 counties now certified22 counties now certified IMPACT: $194 million (2002 dollars) & 2,320 jobs per year (1995-2000)IMPACT: $194 million (2002 dollars) & 2,320 jobs per year (1995-2000) Similar efforts in TX, LASimilar efforts in TX, LA

12. 1/26/200612Copyright EntreWorks Consulting 2006 More Best Practices: State Level Alabama AdvantageAlabama Advantage Primarily focused on marketing and trainingPrimarily focused on marketing and training North DakotaNorth Dakota Operation Back Home Again—targets former residentsOperation Back Home Again—targets former residents South CarolinaSouth Carolina Active use of incentives (e.g. SC Reverse Mortgage Act, no tax on retirement income, free tuition at state schools)Active use of incentives (e.g. SC Reverse Mortgage Act, no tax on retirement income, free tuition at state schools)

13. 1/26/200613Copyright EntreWorks Consulting 2006 More Best Practices: Local Level Triple Crown Hometowns (GA)Triple Crown Hometowns (GA) www.georgiaretire.comwww.georgiaretire.comwww.georgiaretire.com Sequim (WA) (www.cityofsequim.com)Sequim (WA) (www.cityofsequim.com)www.cityofsequim.com Thomasville (GA)Thomasville (GA) (www.thomasvillechamber.com)(www.thomasvillechamber.com)www.thomasvillechamber.com Sedan (KS)Sedan (KS) 50,000 annual visitors50,000 annual visitors Newton (MA)Newton (MA) Lasell Village (www.lasellvillage.com) at Lasell CollegeLasell Village (www.lasellvillage.com) at Lasell Collegewww.lasellvillage.com

14. 1/26/200614Copyright EntreWorks Consulting 2006 What Should We Know? What Happens as In-Migrants Age?What Happens as In-Migrants Age? What Motivates Them to “Give Back” in new Communities?What Motivates Them to “Give Back” in new Communities? Bridging the Local-Newcomer DivideBridging the Local-Newcomer Divide What is the best way to tap their expertise, skills and resources?What is the best way to tap their expertise, skills and resources?

15. 1/26/200615Copyright EntreWorks Consulting 2006 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)www.angelcapitalassociation.org

16. 1/26/200616Copyright EntreWorks Consulting 2006 Other Resources Aging in Place Initiative: Program seeks to build communities that are good places to grow old. (http://aipi.n4a.org/)Aging in Place Initiative: Program seeks to build communities that are good places to grow old. (http://aipi.n4a.org/)http://aipi.n4a.org/ American Association of Retirement Communities (www.the-aarc.org): Focused on “promoting economic development through retiree attraction.”American Association of Retirement Communities (www.the-aarc.org): Focused on “promoting economic development through retiree attraction.”www.the-aarc.org Experience Corps (www.experiencecorps.org): Seeks to encourage community service by those over the age of 55.Experience Corps (www.experiencecorps.org): Seeks to encourage community service by those over the age of 55.www.experiencecorps.org Retirement Living Information Center (www.retirementliving.com)Retirement Living Information Center (www.retirementliving.com)www.retirementliving.com

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