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Send us your baby boomers, states plead

More states are trying to recruit retirees — and the money they bring — by promising an affordable paradise within their borders.

This month marks the first time oldest members of the baby boom generation can make penalty-free withdrawals from retirement savings accounts. States such as Alabama, Florida, Louisiana, Mississippi, West Virginia and Wyoming have taken note of the impending retirement of the post-World War II population bulge and are ready with Web sites, guidebooks and tax breaks to try to lure well-off retirees to relocate.

While people tend to pay less in income taxes and demand more taxpayer-supported services such as health care after they retire, those with the wherewithal to relocate are a different breed and can be an economic boon for states, researchers said. More than half of migrating retirees in 2004 reported incomes over $60,000, and 25 percent had incomes over $100,000, according to U.S. Census data.

"Migrating retirees pay more in taxes than they will cost in services. That’s the main reason states are interested. They can increase the tax base without increasing the tax rates," said Mark Fagan, a professor at Jacksonville State University in Alabama and an expert in retiree recruitment.

By Kathleen Murphy, Stateline.org Staff Writer

Full Story: http://www.stateline.org/live/ViewPage.action?siteNodeId=137&languageId=1&contentId=45531

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