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StumbleConsultant says aging population a boon to Nevada
Nevada should think about doing more to attract seniors, business expert says
Thursday, Jan. 21, 2010 | 2:05 a.m.
CARSON CITY — Contrary to a popular perception, Nevada senior citizens are a boon to and not a drag on the state’s economy, an economic expert says.
And Nevada should think about doing more to attract seniors from other states to spend down their assets, says Jeremy Aguero, a Las Vegas business consultant.
He appeared at the Las Vegas meeting of the Legislative Committee on Senior Citizens, Veterans and Adults with Special Needs, created by the 2009 Legislature to look how to protect and improve conditions for the elderly.
Carol Sala, administrator of the state Aging and Disability Services Division, said the population of those over 65, which was 100,000 in 1985, is expected to reach 650,000 by 2025.
Sala said the goal of her division is to keep seniors in their home or community and as “independent as possible.” The responsibility of the division, she told the committee, is to delay the admission of seniors to costly institutions such as nursing homes.
From 2001 to 2007, there has been a 930 percent increase in spending for personal and community services for seniors, decreasing the need for nursing home beds, Sala said.
Aguero, an owner of Applied Analysis, said the percentage of seniors in Nevada is 11.3 percent, compared to the national average of 12.6 percent.
He predicted that the growth in the population of those over 65 in Nevada will be faster than the overall population increase. Seniors are living longer, living better and have more wealth, he said.
The elderly are “larger in economic value,” said Aguero, who performed several studies for the state and the Nevada Legislature on tax issues.
Nevada does not have a competitive edge in attracting this elderly population now, but “creating one is incredibly important to us,” he said.
The average household income of persons 65 years old and older in Nevada is $39,191, and research shows the average senior household spends an average of $40,322.
“Seniors are spending down their assets” on such things as health care, housing, autos, food and gifts, Aguero said.
More than $80 million a year is spent to attract tourists to Las Vegas, Aguero said. Yet there is relatively little money spent to promote Nevada as a great place to retire.
Assemblywoman Kathy McClain, the head of the committee, said more understanding is needed of what seniors like and don’t like.
The marketing of Nevada could be on its low taxes, the weather, entertainment and the low cost of housing.
The Legislature created the committee to look at things such as providing care and services to seniors in their homes rather than in an institution and follow-up care for people in long-term centers.
Its next meeting is March 2. It will report its findings and recommendations to the 2011 Legislature.
Cy Ryan may be reached at (775) 687 5032 or cy@lasvegassun.com.
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What does a "Boon" mean???
Trying to turn Nevada into some sort of retirement area for Senior Citizens is a BAD idea!
First off, while they pay property taxes and pump money into retail and service industries, they overall do not work any actual jobs. That means that with no taxable income, they drain more out of local governments budgets for the services that they need, than what they are able to contribute in.
Second, while the elderly may have more disposable income and larger savings, this also means that they drive up the price of real estate, and force younger citizens out of the community who cannot economically compete. This means that we loose our talented youth and the families they will be starting. What we end up with is "Brain Drain", and the Community suffers as a whole.
Third, any gains that we could see in taxable revenue, and even certain levels of employment in the service industry that cater to retirees is short lived. These people are in the twilight of their lives, and will inevitably die soon. Then where are we at? Ghost towns with devalued land, and no fresh workforce who left long ago.
Don't believe me? Take a look at Mesquite, Nevada's economy and census results over the past 15 years alone. The place is a microcosm example of what goes wrong when you shift your city's industry focus over to becoming a giant retirement community.
I disagree and sincerely hope that Jeremy digs a lot deeper into his analysis. Spending peaks at age 50. Not a good stat for Nevada with a tax structure that relies heavily on taxable sales. Combine the lower tax revenues with an increase in government services and you get boondoggle, not boon. The "spending down" items of vehicles, health care, and housing are all "leakage" items. The profit from these items leak to industries that are mostly located outside Nevada.
I highly doubt that the silver tsunami will be Nevada's silver bullet. The aging of the baby boomers and their impacts on our economy and communities need to be analyzed in much better detail (revenues versus expenditures). Until we have a full grasp on the costs to local governments, they should not targeted as an economic sector.
GrandmaCrabby Rocks!
"These people are in the twilight of their lives, and will inevitably die soon. Then where are we at?"
DMC Vegas:
Then it will be YOUR TURN to be a senior citizen, paying taxes, spending money to help the economy, etc.....and then it will be YOUR turn to die. And so forth and so on.
Re DMCVegas' Comment - Out of the mouths of babes (an ignorant one, to boot!!) Guess he/she has found the fountain of youth since he/she will NEVER get old!
DMCVegas should run against Harry on the Democratic ticket. He's got things really figured out.
By the way, I have not noticed any homes belonging to senior citizens in foreclosure...
I think the DMC has been spending too much time at the DMV...