Income vs. Wealth: Understanding Kingsport’s Retiree-Driven Metrics

Public discussion about Kingsport’s economy often leans on a single familiar figure: median household income. It is simple, understandable, and widely used. Yet in Kingsport’s case, it can also be one of the most misleading indicators of our true economic condition. Many of Kingsport’s major job sectors—manufacturing, health care, finance, and professional services—offer median wages well above $69,000. But the city’s median household income sits in the low $50,000s. At first glance, that mismatch seems troubling.

The answer, surprisingly, is not a sign of weakness but of strength.

The U.S. Census Bureau counts as “income” only the money a household receives or withdraws in a given year. It does not measure accumulated wealth, home equity, retirement balances, or investment principal. This matters enormously in a community with a large population age 65 and older. A retiree with a paid-off home, strong savings, and a seven-figure nest egg may choose to withdraw only $40,000 per year to manage taxes and preserve assets. That household appears “low income” on paper even though it is financially secure by any reasonable standard.

Kingsport is not alone in this pattern. Johnson City, with its university and medical anchors, has a younger profile but still shows the same age-based income gap. Working-age households (25–64) report median incomes in the low- to mid-$60,000s, while households headed by someone 65 or older report much lower figures. Bristol, Tennessee, and Bristol, Virginia, show similar dynamics: strong earning years in the 45–64 group, then a sharp drop in reported income among retirees who are no longer drawing heavily from their assets. In all four cities, the “retiree effect” significantly lowers the overall median household income.

Kingsport stands out, though, because it has a particularly high concentration of residents over age 65. Many came here by choice. They bring resources, stability, and volunteer energy—but not necessarily large annual withdrawals from their retirement accounts. In a statistical sense, this depresses the citywide median. In a practical sense, it strengthens the community.

Another part of the story involves commuters. Many of the highest-paying jobs located in Kingsport—especially in advanced manufacturing, health care, and professional services—are filled by workers who live in Johnson City, northern Washington County, or Bristol. Their wages strengthen Kingsport’s employment base but do not show up in Kingsport’s household income statistics. Meanwhile, Kingsport’s residents include many retirees and single-person households who are not participating in the labor market at all.

Understanding this difference between where people work and where people live is key. It explains why Kingsport can have strong wage data and modest household income at the same time. Johnson City experiences the opposite dynamic in some respects: a younger population, more dual-income households, and fewer retirees result in a higher median income, even though many residents commute out for work. Look no further than the traffic on I-26 for validation.

It is also important to recognize the economic value retirees bring beyond what shows up on a census table. They generate steady spending at restaurants, clinics, retail shops, pharmacies, and home-improvement stores. They hire local contractors, rely on personal services, and contribute consistent revenue streams through Social Security and pensions. They volunteer in churches, schools, and nonprofits—strengthening the civic fabric in ways no income statistic can reflect. In this sense, retirees are a stabilizing force not only in Kingsport, but across the entire Tri-Cities.

Median household income is useful, but it must be interpreted in context. When viewed through the lens of age structure, commuting patterns, and asset-based retirement strategies, the story becomes clear: Kingsport, Johnson City, and Bristol are experiencing parallel demographic patterns that shape their income profiles in different ways. Kingsport’s lower median income is not a sign of weakness. It is a reflection of who lives here—and the financial choices they are fortunate enough to make.

Kingsport’s economic strength lies not only in what people earn, but in the assets, stability, and civic engagement they bring to the community.

3 responses to “Income vs. Wealth: Understanding Kingsport’s Retiree-Driven Metrics”

  1. Jeff. Good article. What is our current labor utilization rate?  Thanks. Pat

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  2. Kingsport’s labor force participation rate—about 54 to 55 percent—is several points below Tennessee’s and well below the national average, and that gap explains much of what we see in the city’s income data. A larger share of older adults, more residents managing disability or caregiving responsibilities, and a meaningful number of early and traditional retirees all reduce the proportion of adults who are working or seeking work. Once retirees—early or otherwise—exit the workforce, they are counted as “not in the labor force,” which lowers participation and pulls down median household income even though many of these households are financially secure. Kingsport’s relatively affordable cost structure magnifies the effect: more families can live comfortably on a single income, more trailing spouses choose not to re-enter the workforce, and retirees can withdraw far less from their savings while maintaining a strong quality of life. These choices show up in federal data as lower participation and modest income, but they often reflect lifestyle preferences and asset-backed financial stability rather than economic distress. Understanding this dynamic is essential: Kingsport’s headline income figures are shaped less by wages and more by the city’s older age profile, affordability, and the prevalence of “income-light, asset-heavy” households who contribute to the economy in ways the data does not fully capture.

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  3. larrypennington Avatar
    larrypennington

    I agree that retirees are an asset to the community, and I felt that way before I was retiring.

    But I wish that people in Knox County could agree with this article. I am constantly hearing that the people who will add value to the community are the ones who have children. .
    Of course, having children means more government obligation for schools. And more taxpayer obligations for any numerous community designs..

    I expect this void from those population- growth comments, declining to discuss the govt obligations, but focused on family importance , because when the pro- family social engineers make a public statement, they display family values by naming fake television shows, that do not reflect real people..

    I would imagine your only Ozzie & Harriets are the retirees – because moms/ dads don’t walk around in ties or pearls.

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