Estimates of Retiree Spending in the Retail and Service Sectors of a Community

Abstract

This paper presents estimates of retirement spending which provide new information about the strategy of using a retirement population to expand a local economic base. Estimates of retirement spending for 42 different retail and service business types by size of community and type of retirement household are provided. Hypotheses tested include differences in the average propensity to consume locally by business type and tests for differences in retirement household mobility. The results of the study have implications for community development practitioners who chose to use a retiree population to help diversify and strengthen the retail and service part of community. These implications include: most retiree expenditures can be expected to be spent locally, the impact of developing a retirement base will spill over to regional shopping centers, and the increased viability of the retail and service district in a community will vary significantly by type of business and retirement household.