$1.5 Billion and Growing: Economic Contribution of Older Alaskans

Abstract

Nearly $1.5 billion a year flows into Alaska from a source that doesn’t depend on oil or fish or gold, isn’t influenced by world markets, and isn’t seasonal. That cash flow roughly equals what fishermen were paid in 2005 for their Alaska seafood harvests, or the value of zinc, gold, and other metals mined in Alaska in 2004. It’s close to what tourists spend here every summer. What’s the source? Retired Alaskans. The 52,000 retirees age 60 or older brought an estimated $1.46 billion into the state in 2004. About 75% is from Social Security and pensions. Most of the rest is spending by governments and private insurers for health-care costs of retired Alaskans. ISER estimates that spending by retirees supports about 11,700 jobs—or nearly 4% of Alaska’s wage and salary jobs. This summary reports ISER’s findings about the economic contributions of older Alaskans, describes who they are, and estimates how their numbers are likely to grow.