|
Senior Class: An economic force
By Holly Fisher
Supplements Editor
The number of baby boomers already living in the Lowcountry, combined with the influx of newcomers, is creating an exploding aging population. And with that population comes a unique set of challenges for businesses.
South Carolina’s senior population is one of the fastest growing in the nation and the fastest growing in the Southeast, according to the S.C. Lieutenant Governor’s Office on Aging.
In 2000, the over-60 population had increased 128% since 1970 and is expected to grow another 108%
by 2025.
Those triple-digit percentage increases will impact the health care industry, the housing and real estate market, state Medicaid funds, local transportation providers and a myriad of other businesses whose employees are caregivers to aging parents and family members.
South Carolina is working to attract more affluent retirees to the state, people who bring plenty of spending money, yet don’t drain local resources, compete for high-paying jobs or place children in the school system.
“The big issue for South Carolina is that these seniors moving in are going to be a tremendous economic engine in our state, and that creates the opportunity for the business community to develop new services to meet the needs of this population,” said Nela Gibbons, director of the state’s Office on Aging.
She cited a study completed for the S.C. Department of Parks, Recreation and Tourism that revealed the state needs 3.7 new manufacturing jobs to equal the impact of one affluent retiree household.
Gene Warren, president of Thomas, Warren + Associates, a Phoenix-based consulting firm that helps cities attract retirees, said he hasn’t found one city where attracting affluent retirees doesn’t make economic sense. “I think as this moves along, competition (among cities) is going to get much fiercer,” he said.
Of the 76 million baby boomers on the verge of retirement, about 15 million of those are expected to relocate. And South Carolina should be waiting with open arms. Adopting the attitude of the retirement community as an industry in itself is the best tactic states and cities can take.
Warren’s research reveals the benefits retirees bring to a community—even greater benefits than a new manufacturing plant, which would most likely require tax breaks and other incentives.
More affluent retirees spend money in the local communities, they travel the state as tourists and they add to the pot of local property taxes.
Often, a community’s aging residents don’t require a large number of added services, but they do demand a high level of service. Their presence can lead to better health care and medical providers, for example.
In addition, businesses often hire seniors for part-time or service work. According to the Bureau of Labor Statistics, by 2008 40% of workers will be age 45 or older, compared to 33% in 1998.
Seniors can be valuable additions to a business because they bring experience, are reliable and usually have flexible work schedules. They aren’t necessarily looking to climb the corporate ladder, so they can work 20 hours a week.
Also, as people live longer, they will stay in the workforce longer. This brings added considerations and legal issues for businesses.
Companies with aging employees must be careful to follow the Americans with Disabilities Act and the Age Discrimination in Employment Act.
Businesses may also find they need to accommodate younger employees who are caring for aging parents and relatives.
According to the state Office on Aging, when 1,500 caregivers stop working, about $22 million in expenditures are lost to the state’s economy. Nationally, businesses experience a $26 billion loss annually because of retraining, absenteeism and lost productivity as workers double as caregivers.
Businesses also may face a worker shortage as the population pyramid shifts to one with more retirees and fewer young people in the workforce, Gibbons said.
“There are a lot of challenges we’re going to need to look at in terms of broad policy to encourage older workers to stay in the workforce,” she added. Those changes could mean revisions to pension laws or the need for flexible work schedules.
Even though the people are living longer and working longer, at some point, people don’t want to stay at their job with its high intensity level, Gibbons pointed out. While older workers want to use their knowledge and skills, they want more flexible schedules.
For all the positives associated with a growing population of retirees, the state can’t forget it has an increasing native, indigenous population this is dependent on Medicaid and public services, Gibbons said.
Even the affluent retirees will have medical problems as they continue to age. It remains to be seen whether those in-migrants to South Carolina will stay in the state or, particularly after their first health crisis, decide to relocate closer to their adult children, Gibbons said.
“If they stay, do we have the health care infrastructure that is necessary?” she said.
A number of issues need to be considered as South Carolina ages and as it welcomes more baby boomers and retirees.
The reality is that not everyone over the age of 60 in the state has a retirement income, health insurance and plenty of spending money.
The struggle for the state’s business community and lawmakers will be how to make the most of its aging population—all of it.
“It’s a positive for the state, but associated with this good, there are challenging and complicated policy issues that have to be looked at at the same time to keep the balance between the benefits of growth and the good and the needs of the folks who are not as affluent,” Gibbons said.
Holly Fisher is the supplements editor for the Business Journal. E-mail her at hfisher@charlestonbusiness.com.
|
E-Mail This Article
Printer-Friendly Version