Some 13% of the Texas population, or slightly more than 2.7 million people, are retired or headed toward retirement over the next few years. They are being joined on a daily basis by thousands of similarly-aged adults from throughout the United States.
By 2030, the number of retirement-eligible residents in Texas will climb to about 7.4 million or approximately 22% of the state’s overall population. The Census Bureau estimates that the number of people over the age of 65 throughout the US will likely double in the next 20 or so years.
According to a recent report from the North Carolina Center for Creative Retirement, the Lone Star State is now the second most popular destination for retirees. Compiled from 2005 information (latest data available), the tracking center report noted that Texas is the choice of 6.8% of non-Texans on the road to retirement, behind only Florida with 16.6%. In 2000, Texas was ranked fourth as the best place to retire, while Florida was the choice of 19.1%.
Older migrants who come to Texas bring their investments, pensions, and Social Security checks, all of which add more than $751 million annually to the state economy. The money they are spending is serving to enrich communities and create jobs across Texas.
As more states recognize the economic assets that older adults who are planning to pull up stakes can be, competition for them will undoubtedly increase. The Texas Agricultural Department recently launched a “Retire in Texas” campaign. Although it is still in its infancy stage, more than 65 communities have expressed interest in becoming involved in the marketing endeavor.
For many adults, the end of their careers marks the beginning of fresh opportunities and challenges—from new employment possibilities to recreational, educational, and leisure activities. The natural attributes of the Texas landscape, as well as the lower cost of living, a pleasing climate, housing availability, and ease of transportation are very important drawing cards. Among the older baby boomers, some two-thirds of those willing to move to a new location to spend their golden years indicate that a better community lifestyle would be a key reason for changing locales.
The absence of a state income tax is another factor that figures into retirees’ decisions to relocate. Moreover, meeting medical needs is a key consideration in senior citizens’ choices to move to a particular state.
Almost 50% who have expressed interest in changing addresses say that proximity to family and relatives plays an important role. Half of the baby boomers nearing retirement plan to buy a new home in their adopted community. In the case of the older boomers, about 49% of those who anticipate moving are considering downsizing.
Texas, of course, not only competes with other states for retirees, it also faces challenges from international locations. Currently, more than 460,000 Americans reside outside the boundaries of the US. Mexico, Uruguay, Costa Rica, and Portugal all have enticing promotional programs and are the most popular destinations. The three main reasons for retirees to move to those sites are the climate, a lower cost of living, and the excitement of residing and traveling in a foreign country.
With almost 420,000 Americans crossing state lines each year in preparation for retirement, it certainly behooves Texas business, cultural, and education leaders to seek ways to effectively enhance the desirability of their communities as potential retirement sites. As noted by the axiom: we age by nature, but we age well by foresight, preparation, and creativity.