STATES TARGET RETIREES TO BOOST ECONOMY

Recently, a visitor from Oxford, Miss., was asked what the biggest industry in his hometown was -- after Ole Miss and William Faulkner. Without hesitation, the visitor replied: "Retirement." Asked to explain, he said the Mississippi city has begun an aggressive economic-development campaign aimed at attracting retirees to Oxford. "It's a great place to retire," he said, "and retirees are a big boost to the local economy."

That's a trend elsewhere in the nation as well, even though Florida and Arizona have long been considered the prime retirement states. Now states as diverse as West Virginia and Mississippi are recruiting retirees. And not just any senior citizens. From an economic-development standpoint, the biggest impact comes from well-educated, affluent individuals who are looking for new surroundings once they give up active careers.

National statistics show that most retirees don't move anywhere. Approximately 85 percent of retirees stay put. But there are good reasons for states to aggressively court senior citizens.

In West Virginia, the state hopes to boost the tax base. The Mississippi Development Authority says it selectively targets retirees that have annual income of more than $30,000 a year and about $320,000 in liquid assets. One household of these retirees, state officials say, has the buying power of 3.7 factory jobs. And you don't have the cost of building the factory or the pollution considerations that might accompany a full-blown factory.

Not every town considers retirees to be an economic boon, however. Twenty-five years ago, some business leaders in Harry Truman's birthplace -- Lamar, Mo. -- actively discouraged an influx of retirees who were lured by low taxes and an equally low cost of living. In Lamar, retirees were seen as opponents to school-bond issues and other needs of a town that hoped to grow and expand.

There are communities around the country that still regard retirees as an economic liability rather than an asset. But if West Virginia and Mississippi are right, there are plenty of opportunities for bolstering the economy without the tremendous expense of industrial recruitment.

With baby boomers approaching retirement age, the pool of affluent retirees will grow enormously. It is likely that many more states will begin paying attention to this important demographic.