Definition
The total sum of all money income received by all individuals in a specific geographic area from sources other than wages, salary, or self-employment (e.g., interest, dividends, Social Security, public assistance, retirement income, rental income).
Why It Matters
Reveals the financial resources flowing into a community from non-employment-based sources. This is crucial for understanding the economic stability of retired populations, individuals on fixed incomes, or those receiving benefits.
Specific Relevance for Professionals:
Marketers
Helps identify markets with significant passive or fixed incomes, enabling targeting for financial management services, retirement living products, or specialized goods for those on fixed incomes or receiving benefits.
Researchers
Fundamental for studying income diversification, the economic well-being of retired populations, the impact of transfer payments on economic stability, and the role of investment income in local economies.
Consultants
Useful for advising clients on services targeting retirees, beneficiaries of social programs, or investors. Also relevant for assessing the economic resilience of a region, independent of active labor market earnings.
Public Policy Workers
Important for understanding the economic base beyond employment, informing policies related to Social Security, welfare programs, pension management, and supporting populations reliant on diverse income streams.
