The Effects of Wyoming’s Aging Population

Courtney Skinner, Emily Feuz, and Haley Madia

With new medical technology and improved knowledge about health and wellness, American’s life expectancy is longer than ever, with a better expected quality of life as well. Wyoming is the fastest aging state in the country according to the Billing’s Gazette. In addition to an already aging state, Wyoming has been named by national publications as a top place of retirement due to its tax structure and climate. In an article from the Wyoming Tribune-Eagle, it is predicted that by the year 2020 Wyoming will have the highest percentage of residents over the age of 65. With the rapidly rising elderly population, Wyoming faces many challenges and difficulties in its future.

One of the most apparent challenges Wyoming faces will be the additional costs and economic effects brought on by the baby-boomer generation. During an average person’s lifespan, they tend to borrow money when they are younger, as they begin to start their own lives and jobs. Once they are more economically independent, around middle-age, they begin to pay off their debts and save for retirement. Wyoming’s concerns rise when retirees begin to sell their assets and dig into their savings to finance their retirement. What worries economists is the negative impact on the economy that a loss in overall savings may have. James Poterba, an economist from the Massachusetts Institute of Technology also worries about the housing market. The baby-boomer generation has bought houses as investments towards retirement. If they all try to sell at the same time, Poterba worries about a possible slide in the housing market (Economist, 04).

Another concern to Wyoming is Medicare costs. Although the elderly population may be healthier than those in the past, they may actually be costing Medicare more money. Medicare is a government program and unlike private insurance companies, it must pay the costs of any beneficial medical care. From an example in USA Today, they point out that the type of defibrillator put in Vice President Dick Cheney is expected to become standard care for cardiac patients. The instillation of the defibrillator, which regulates the heart’s electrical rhythms, currently cost about $30,000. This is expected to cost Medicare $14 billion by 2015, if only half of those suffering from heart failure received this treatment. This is a major national concern, but due to Wyoming’s rapidly aging population, Medicare will also become a major cost to the state.

Economically, Wyoming is not very diverse. The state’s economy is unable to absorb a range of young or old workers. Natural resources and mining have been the fastest growing jobs in the state, with an increase of 15.5% according to the Casper Star-Tribune. These jobs require hard physical labor and are unable to provide significant work to an aging population. According to AARP economist Clare Hushbeck, people are choosing to work past the customary retirement age of 65. This is due in part to increased knowledge based jobs instead of hard labor. If Wyoming is able to follow this national shift toward knowledge based work, the aging residents and influx of retirees could possibly benefit the state’s economy.

Wyoming lacks a younger population to replace the elderly one. Though Wyoming is the fastest aging state, its birth-rate is at an all time low. Between 1990 and 2000, Teton County was the only part of the state to experience an increase in school enrollment according to the Billings Gazette. Small towns in the state secretly fear that they will eventually disappear as everyone moves and long-term residents die out. The Casper Star-Tribune has reported on the concern facing Chugwater’s future. Chugwater is currently trying to bring more school-aged children and businesses there. It is a town characterized by houses built before 1950 and owned almost completely by retired couples. It is a town that fears its end.

Not even Wyoming’s own university is providing a replacement population. Approximately 70% of graduates from the University of Wyoming leave the state to find work after graduation. Sheridan author Samuel Western believes this issue must be examined. It is a common goal that students attending state universities will desire to find work in that state after graduating. According to Western, Wyoming must begin to invest more in education and make efforts to diversify its economy. Such efforts are needed to keep graduates in state to offset the costs of the aging population.

Wyoming has traditionally been an agricultural state. With the increased number of retirees and elderly part-time summer residents, new concerns about the direction of agriculture and state are being raised. Development of the land due to subdivisions or recreational purposes may diminish the agricultural benefits of the land. This development can also increase land prices, which in turn pushes out long-term residents with lower incomes. There is some controversy to how different age groups view land and its use. Some studies support the idea that younger people tend to be more environmentally concerned about the land, while the elderly tend to view land as retirement investments. Other studies suggest that younger residents do not value open space and support land use controls as much as the older population does (Inman, Mcleod, 02). Consequently, an older population in Wyoming will most likely in the future be in strong support of land use controls.

The baby-boomers are quickly approaching retirement age. Despite any negative effects that may come with this, there is nothing the state can do to keep them from aging. The state’s future will be determined in how they choose to deal with this issue. Wyoming must try to focus on possible benefits from the baby-boomer and senior population.

An example of a town benefiting from the aging population is Sheridan, Wyoming. Sheridan’s Big Horn Mountains, active down-town area, and community college have attracted older residents to the community, points out the Wyoming Tribune Eagle. Mayor Jim Wilson has said the town benefits from the volunteer efforts of older citizens and the expertise they bring from their careers. Older residents choosing to retire in Wyoming can bring their knowledge and experience from bigger city jobs to small Wyoming town and provide younger citizens with small town opportunities that were not available in the past. Sheridan has also reaped benefits from the baby-boomers putting in efforts to renovate down town buildings that would otherwise be vacant and deteriorating.

The American Association of Retired Persons of Wyoming estimates that 10% of Wyoming’s population is 65 or older. That number is predicted to increase to 20% in a little over a decade. Wyoming faces many challenges ahead concerning its aging population. Top issue to the state will be increased Medicare expenses, economic effects of the baby-boomers savings and spending, and the question as to who will replace the older generation in Wyoming as younger generations move out of state. It is up to Wyoming to start preparing right now. The state must prepare for these costs and also try to focus on how to gain benefits from an aging statewide population.

Works Cited

A Future Meltodwn? Economist, Vol.372 Issue 8391, p72-72. Retrieved March 26,2006, from EBSCO Host Database

Inman, K. & Mcleod, D.M. (2002). Property Rights and Public Interests: A Wyoming Agricultural Lands Study. Growth and Change, p323-336. Retrieved March 26,2006, from EBSCO Host Database

Links

Wyoming Economic Analysis Division

Wyoming Debates Economics of Courting even more Retirees

The Wyoming Governor's Summit on Aging