The economic and fiscal impact of aging retirees on a small rural region

Abstract

The literature on the economic and fiscal impacts of in-migrating retirees on rural communities tends to concentrate on the younger, more affluent newly retired. This article addresses an issue not systematically addressed: the impacts on communities as these retirees age. Households that vary by age have different income levels and expenditure patterns. A county- level, conjoined input-output/econometrics simulation model is used to assess the impacts of an aging rural population. As hypothesized, the magnitude and nature of impacts is in direct proportion to relative household size and income level. The increased local government expenditures are covered by the increased revenues, even as retirees age.