The Triangle's growing retiree population is a major economic engine that fuels a wide range of businesses, nonprofits and more.
According to population counts, about 12 percent, or 1.1 million, of the state's 9 million-plus residents are over age 65. The bulk of these retirees are often living on fixed incomes, primarily Social Security, and in some instances on government or corporate pensions, and savings.
But many have money and time to spare. The Triangle, in particular, is a destination for that demographic, with a wide range of communities built or planned to attract them.
"Retirees, whether they live in a retirement community or on their own, represent a golden opportunity," said Aaron Nelson, president of the Chapel Hill Chamber of Commerce. "They're an economic asset."
The recession and stock market slump have weakened the strength of that asset, but only slightly. Some struggle with medical bills and other financial hardships. But many older transplants are affluent, drawn to this state by cheaper living, weather and other factors.
In attracting retirement-age transplants, North Carolina ranks sixth, one spot behind Georgia. Florida continues to lead as the retirement magnet, followed by Arizona, Texas and California.
In a 2005 survey conducted by the National Active Retirement Association, it estimated that retirees relocating to North Carolina brought in $348.6 million in income, with much of this money in the form of what's called the mailbox economy - pensions, dividends and Social Security.
"These transplanted retirees often have more money to spend even though many have lost money in the stock market tumble. They are still better off financially than most younger folks," says Charlotte-based David Owens, executive director of the National Active Retirement Association and publisher of several magazines that deal with retirement lifestyle.
Despite the economic downturn, retirement communities are a boon to cities and towns in North Carolina that have lost jobs in manufacturing and other sectors. "They bring income into the area as well as providing jobs to the locals," Owens says.
At Raleigh's SpringmoorLifecare Retirement Community, the 600 residents support 260 full-time jobs and 140 part-timers, partner David Ammons says. "As such, we have added $10.4 million in salaries plus taxes and the benefits that go along with employment."
A study of North Carolina's projection on population growth, conducted by the state's Division of Motor Vehicles, noted 15,000 out-of-staters age 50-plus living in Wake County applied for driver's licenses over three years. Wake lagged slightly behind Mecklenburg County, which had 18,000 transplants.
"Entertainment and eating out are probably quite significant in their economic impact," says John Gabor, who relocated from suburban New York in 1992 and last year moved to the Carolina Meadows retirement community in Chapel Hill. "I've noted that higher income retirees living in places like the Governors Club, Fearrington and others tend to eat out frequently, and go to entertainment events on a regular basis. This pumps money into the local economy."
Income to spend
Steve Pike, managing director of Investor Trust and a Carolina Meadows board member, looks at retirees this way: He maintains that they move here with disposable income, and it's enhanced by the lower costs for many basic living expenses.
"Things cost less here than the Northeast and Midwest, so they're ahead financially on basic costs, which means more money to spend on such things as entertainment and restaurants," he says.
At first, they use their bank and financial adviser where they previously lived. The same applies to their lawyer and accountant, Pike says. Eventually they make the switch and have their money managed locally, which is another boost to the economy.
The recession and sluggish real estate market presents challenges to the managers of retirement communities. According to Laura Morgan, FearringtonVillage's general manager for construction and real estate, the average new Fearrington lot and home costs about $450,000. That's a decline from the nearly $1 million homes it was building a few years ago.
"Buyers are scaling back and spending less on homes," Morgan says. "It means that they want to have maximum disposable income to enjoy eating out, attend cultural events and travel."
Retirees bring business
Many businesses depend on retirees for support. At Jesters, a gift and home goods store in Chapel Hill's Meadowmont, owner Anne Eberdt says she depends on the residents in the Cedars, a continuing care retirement community within walking distance.
"Cedars' residents are an affluent group and an important part of my business," Eberdt says. "Price is not the main factor. Many want to avoid going to the shopping centers. They buy gift items for other family members and furnishings to spruce up their Cedars or a vacation home."
Also in Chapel Hill, Fine Feathers has been selling upscale women's fashions from the same Franklin Street location for 34 years. To manager Maria Harrell, retirement-age women represent an important part of the store's sales.
"We draw upon local retirees throughout the year, but particularly for those who buy for special occasions such as grandchildren graduating from college or getting married, important anniversaries and birthdays and for vacation trips," Harrell says.
Nonprofits also benefit from relocated retirees. At the Forest of Duke, marketing manager Beth Corning notes that its residents are major financial patrons of many of the area's art, musical and cultural groups.
The N.C. Museum of Art finds that retirees and students on school trips dominate the weekday attendance. Similarly, many tour groups consist of retirees.
Retirees also boost box office attendance for local theaters, especially at matinee performances, including at PlayMakers Reper tory Co. in Chapel Hill, Raleigh's Progress Energy Center and Meymandi Hall, and the Raleigh Little Theater.
The Durham Bulls organization goes one step further by targeting retirees with its Silver Bulls package, five daytime games for $35.
