Almost all communities have retirees, but not all communities recognize the economic benefits and potential resources they bring to the local economy. Magnetic Communities understand that retirees bring a lifetime of savings and a steady stream of retirement income to this new phase of their lives.
Retirees Receive Retirement Income
When retirees receive retirement income (Social Security, savings, pensions, etc.) they are free to spend the money on goods and services inside or outside the local economy. Money spent in the local economy stays in circulation locally, while money spent outside the local economy is lost to future spending and economic benefits. Because a substantial amount of retiree income, such as Social Security, Medicare and pensions originate outside the local economy, this money feels and acts a lot like new money. Local retirees are residents of the community and their spending produces similar results.
Similar to working residents, retirees spend money on groceries, eating out, entertainment, housing, transportation, home repairs, etc. In fact, many retirees continue to work. In addition to a steady flow of income and withdrawals from savings, retirees also purchase homes, recreation vehicles, boats and new cars, all of which stimulate the local economy.
Depending on their situation, retirees attract money from Social Security, pensions, savings, consulting work, business ownership, investments, etc.
Medicare payments to local doctors and hospitals also represent new money for the local economy.
Whether new to the community or longtime residents, retirees have skills, expertise, career experience, professional connections and social networks that can benefit the local economy.
Attract Money Strategies
- Increase the number of retirees.
- Recruit younger, amenity-seeking retirees.
- Develop a senior friendly environment.
Retain Money Strategies
- Increase the amount of money retirees spend locally.
- Insure that older residents retire locally.