The OLD North State: Aging NC to Cause ‘Fiscal Tsunami’?

From the Civitas Institute:

There is a significant demographic change occurring in North Carolina that virtually no one is talking about. A change that will have major implications for the state’s fiscal health for decades to come.

With the ageing of the baby boom generation (born 1946-1964), North Carolina is witnessing a meaningful shift in the income source of its residents, as retirement income replaces wage income for more and more seniors in the Tar Heel State.

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State budget writers need to pay attention to this shift, as it has serious implications for budget and tax policy in the coming years.

Research provided in a legislative memo from the Fiscal Research Division’s chief economist finds that in North Carolina “retirement income has nearly doubled as a share of total Federal Adjusted Gross Income from 5.7% in 1991 to 10.3% in 2013.”

Moreover, the research showed that our state’s population of residents over 65 as a share of total population grew from 12.2 percent in 2006 to 15 percent in 2015. The memo added “The State Data Center projects that by 2030 over 20% of North Carolina’s population will be 65 or older.”

In short, in just a dozen years, one in five North Carolinians will be age 65 or over. A significant share of which will be fully or partially retired.

What impact will this have on North Carolina’s economy?

Find out here.

 

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