Retiring in New Mexico: Snowbirds and locals alike are finding New Mexico the perfect place to nest - Retirement - Statistical Data Included

New Mexico Business Journal, March, 2002 by Lyn Kidder

Many of New Mexico's assets are traits that can't be boxed up and shipped out of state. How do you sell spectacular scenery, moderate climate, slower pace of life and low cost of living?

"I call retirement 'the silent industry,"' Mark Schinnerer, head of the retirement promotion council of the Carlsbad Chamber of Commerce, said. "(Retirees) pay taxes, they bring assets, they spend locally and they get involved in the community." New Mexico may not yet be in the same league as Arizona and Florida for the golf and shuffleboard set, but as the retirement age drops and the number of people no longer working full time increases, it's becoming a "best-kept secret."

The U.S. Department of Health and Human Services reports that in 2000 there were 34.5 million people aged 65 and older, an 11 percent increase over the previous decade. The U.S. Bureau of the Census projects that between 1996 and 2025, there will be an 83 percent increase in this age group. By 2030, there will be an estimated 70 million people 65 and older, almost twice the current number. At the end of 1999, monthly Social Security payments to New Mexicans totaled $182 million. Communities would be wise to take a hard look at their efforts to attract this "silent industry."

What do retirees want? "Perfect place" scenarios usually include temperate climate, moderately-priced housing, low property taxes and utilities, friendly people, quality health care, security--and golf. Despite the fact that retirees often bring considerable financial assets to a community, purchase property and consume, no figures are presently being kept on this economic segment.

People who retire to New Mexico often arrive first as "snowbirds," escaping the snow shovels and icy roads of Michigan and North Dakota. After exploring a variety of areas, the next step frequently is to buy a second residence. Retirees spend more and more time in their "vacation" homes and often move on to fulltime residence.

Greg Clark, general manager of Ancantilado Vista, a retirement community in Rio Rancho, has noticed another trend.

"The primary reason our residents give for moving to our community is to be near family," he said. "This usually means that their children have already retired and moved to New Mexico, and they are following. About 40 percent of our residents move from out of state."

Ancantilado Vista has 280 apartments, 60 of which are designated for assisted living. Included in the monthly rent, all residents receive one meal a day, utilities, weekly housekeeping and transportation via the facility's two buses. Assisted living residents receive three meals a day and have a personalized plan for assistance. The facility, owned by Leisure Care, Inc. of Bellevue, Washington, opened five years ago.

"About two years ago, when the economy was strong, everyone jumped into the retirement community market," Clark said. "A lot of places were built, and supply exceeded demand. That's adjusted now, but in the meantime, we've seen our customers change. There's more interest in fitness, so we now offer weight training and aerobics with a licensed physiologist."

The facility has its own in-house travel agency and organizes tours especially suited for their residents.

"All our tours have a ratio of ten clients per guide," Clark said. "And if a group of residents wants to take a trip with another tour company, we can send a member of our staff with them. Even if our residents need help, they can still travel."

Theresa Cruz, marketing director for Kingston Residence of Santa Fe, also noted that many of their residents moved to be nearer to their families.

"After September 11, that's been a big motivation. Just last week we had two residents move here from California, and one from Florida." Cruz estimated that only 20 percent of their residents are from New Mexico.

Many residents in the 100-unit complex are still working. "Often it will be a state worker whose spouse has died," Cruz said. "When they add up all the expenses of keeping up a house, they often find that it's cheaper to live here. Plus they have companionship if they want it, security and also their independence.

"We have three sisters living here. Their husbands died and they sold their homes and all moved here. Now a fourth sister is thinking of joining them."

Retirees who prefer an urban environment and who don't mind a little winter come to Albuquerque or--if they can afford it--Santa Fe, But mild weather makes communities in the southern part of the state particularly attractive.

Silver City first began to recruit retirees in the early 1980s, according to Linda McArthur, assistant director for Silver City-Grant County Economic Development Corporation. "The first time that Phelps Dodge closed, we realized we needed to look at other kinds of revenue," she said. "We didn't have much money, but there were several articles about us in national magazines. Since then, we include retirement information with anything we send out."

Silver City has no retirement communities, but it does have two small assisted living facilities.