In an effort to determine the extent to which the development of the retirement function can contribute to growth and development of rural communities, 42 counties not adjacent to Standard Metropolitan Statistical Areas in Michigan were studied. The retirement function was treated as a specialized community function, parallel to specialization such as agriculture, manufacturing, or services; community was seen as the basic form of organization in which a population adapts to its environment. It was found that none of the specialized functions directly promoted community growth between 1970 and 1975. The retirement function, however, had an impact on wholesale and retail activities and on migration of younger people, which in turn affected population growth and structural development. Migration of younger people to the community was found to be the crucial factor determining population growth and structural development. Since the inmigration of younger people to nonmetropolitan areas was associated with the development of the retirement function more strongly than with any other specialized community function, it was concluded that the development of the retirement function in nonmetropolitan areas was the most important factor contributing to population growth and structural development between 1970 and 1975. (BR)