Most income of in-migrating retirees comes from sources outside the state, not from wages and salaries. Arkansas' in-migrating retirees earn a smaller portion of their income than retirees nationally. Therefore, most income of Arkansas' in-migrating retirees is derived from sources outside the state. Retiree in-migrants also pay state and local taxes that increase public sector revenues. However, in addition to in-migration, some retirees leave the state and take their income with them.
Income varies greatly among retiree households as it does for the general population.
However, retirees who relocate to another state after retirement generally have higher incomes than the average retiree. On average in-migrating retirees have higher incomes than residents of communities where they relocate. Of course, this is not coincidental because communities strive to attract retirees with high incomes who will purchase more goods and services locally. Many in-migrating retirees construct new homes in Arkansas, which generates jobs and income for Arkansans. If we assume that 20 percent of the estimated 6,793 elderly households who move to Arkansas annually build a new home, then 1,350 new homes are constructed in our year of analysis.