7 Reasons to Retire in Florida (2024)

FAQs

7 Reasons to Retire in Florida? ›

But expensive housing isn't the only thing repelling retirees from the state. Inflation and stock market dips have also negatively impacted their financial situation. In response, seniors are seeking more affordable places to call home.

But expensive housing isn't the only thing repelling retirees from the state. Inflation and stock market dips have also negatively impacted their financial situation. In response, seniors are seeking more affordable places to call home.

If you have a low living cost and can supplement your income with a part-time job or a generous pension, then retiring on $3,000 a month is certainly possible.

You'll need a higher monthly income if you plan on traveling or on living in a very expensive community. However, according to Good Life Home Loans, the average monthly retirement income is about $6,100, or about $73,000 annually.

As of Jun 2, 2023, the average annual pay for the Retirement jobs category in Florida is $45,609 a year. Just in case you need a simple salary calculator, that works out to be approximately $21.93 an hour. This is the equivalent of $877/week or $3,800/month.

1. Sarasota. Sarasota is a retiree hotspot — over 40% of residents are 60+ years old. With a retiree population this large, it's no surprise that the city is built around the needs of its senior residents.

To acquire the full amount, you need to maximize your working life and begin collecting your check until age 70. Another way to maximize your check is by asking for a raise every two or three years. Moving companies throughout your career is another way to prove your worth, and generate more money.

According to data from the BLS, average incomes in 2021 after taxes were as follows for older households: 65-74 years: $59,872 per year or $4,989 per month. 75 and older: $43,217 per year or $3,601 per month.

People ages 65 and older had an average income of $55,335 in 2021. Average annual expenses for people ages 65 and older totaled $52,141 in 2021. 48% of retirees surveyed reported spending less than $2,000 a month in 2022. 1 in 3 retirees reported spending between $2,000 and $3,999 per month.

How much does the average person retire with money? ›

The Federal Reserve's most recent data reveals that the average American has $65,000 in retirement savings. By their retirement age, the average is estimated to be $255,200.

According to the Social Security Administration (SSA), the average monthly retirement benefit for Security Security recipients is $1,781.63 as of February. Several factors can drag that average up or down, but you have the most control over the biggest variable of all — the age that you decide to cash in.

In fact, statistically, around 10% of retirees have $1 million or more in savings.

State tax benefits

Many folks choose to retire in Florida for tax reasons alone. There are no state taxes on social security, pension funds, IRAs, 401(k)s, or other retirement incomes, which makes the state specifically attractive to folks over the age of 65.

Share: The waterfront hamlets of Satellite Beach and Marco Island top our list of the safest places to live in Florida in 2023, while the safest large cities in Florida are Cape Coral and Port St. Lucie. Whether you're just starting a family or retired, safety is always a major concern when searching for a home.

Tampa General Hospital Named #1 in Tampa and #3 in Florida to Newsweek's "World's Best Hospitals 2023" List and Is Among the Nation's Top 100.

1 state to retire for high quality of life: Massachusetts. Massachusetts is the best state for retirees based on the quality of life. While the state ranked in the bottom half of the list for affordability, it scored top marks for health care, coming in at second place.

Does Florida have good healthcare for seniors? ›

More seniors suffer multiple chronic conditions. Florida is in the middle, ranking 25th, for overall senior health among the 52 states, according to the latest America's Health Ranking Seniors Report. The analysis is sponsored by United Health Foundation affiliated with UnitedHealthCare.

You must have worked and paid Social Security taxes in five of the last 10 years. If you also get a pension from a job where you didn't pay Social Security taxes (e.g., a civil service or teacher's pension), your Social Security benefit might be reduced.

Claiming “early,” at age 62, will result in the permanent reduction of your Social Security checks by up to 30%. Waiting until age 70, however, has the opposite effect. For every year that you delay claiming past full retirement age, your monthly benefits will get an 8% “bonus.”

More than one quarter of Americans have no money saved for retirement, according to a new survey. Almost one in five people age 59 and older said they didn't have a retirement account, which compared to a quarter of Generation X respondents.

Use these insights to help determine whether your retirement plan is on the right track. Retirement experts have offered various rules of thumb about how much you need to save: somewhere near $1 million, 80% to 90% of your annual pre-retirement income, 12 times your pre-retirement salary.

That means that many will need to rely on Social Security payments—which, in 2021, averages $1,544 a month. That's not a lot, but don't worry. There are plenty of places in the United States—and abroad—where you can live comfortably on $1,500 a month or less.

First, let's look at some statistics to establish a baseline for what a solid retirement looks like: Average monthly retirement income in 2021 for retirees 65 and older was about $4,000 a month, or $48,000 a year; this is a slight decrease from 2020, when it was about $49,000.

Someone at a typical retirement age of 62 to 65 can plan on a 5% withdrawal rate from their investments based on the $1,000-a-month rule. But retirees in their 50s should plan on withdrawing less than 5% per year so that their funds last for the duration of a long retirement period.

Housing is likely to be your biggest cost in retirement. According to Gary Grewal, certified financial planner and author of “Financial Fives,” there are several housing-related expenses you should incorporate into your retirement budget, including property taxes and home repairs.

What expenses increase during retirement? ›

More money spent on travel and uncovered medical expenses, as well as unexpected tax bills and more free time to shop, are four big reasons why. Discounts and seniors' perks can help you save money. It's possible to save money with proper planning.

The average monthly retirement income adjusted for inflation in 2023 is $4,381.25, according to a 2022 U.S. Census Bureau report. The average annual income for adults 65 and older in 2023 is $75,254 – or $83,085 when adjusted for inflation.

Among those looking ahead to retirement, many expect to step away from work at age 65, according to the 2023 Retirement Confidence Survey. Although 65 is the anticipated median retirement age, workers report retiring at a median age of 62, the survey found.

At least 53% of Americans admit they don't have an emergency fund, according to a recent poll conducted by CNBC and Momentive. That figure skyrockets to at least 74% for those with a household income below $50,000 per year.

1,821,745 Households in the United States Have Investment Portfolios Worth $3,000,000 or More.

The 4% rule is a popular retirement withdrawal strategy that suggests retirees can safely withdraw the amount equal to 4 percent of their savings during the year they retire and then adjust for inflation each subsequent year for 30 years.

In 2023, the average senior on Social Security collects $1,827 a month. But you may be eligible for a lot more money than that. In fact, some seniors this year are looking at a monthly benefit of $4,555, which is the maximum Social Security will pay. Here's how to score a benefit that high.

The Social Security special minimum benefit provides a primary insurance amount (PIA) to low-earning workers. The lowest minimum PIA in 2023, with at least 11 years of work, is $49.40 per month. The full minimum PIA, which requires at least 30 years of work, is $1,033.50 per month.

As of the end of 2020, there were nearly 22 million people in the US who had a net worth of $2 million or more.

Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a $1 million index fund could provide $100,000 annually.

How many Americans have $1 million in bank? ›

More than 8% of adults in the U.S. have enough assets to fit the definition, according to the Global Wealth Report 2020 by Credit Suisse. That works out to more than 20 million Americans.

This number goes down slightly over the years as retirees use up their income streams, but $100,000 to $150,000 per year, or about $8,300 to $12,500 per month, is what a good retirement income per month is according to the retirement calculator.

Taking retirement benefits early (minimum age 62) will mean smaller monthly payments, but you'll receive them for longer. Waiting until full retirement age (67 for people born after 1960) will result in larger monthly benefit payments, but you'll receive them for a shorter period.

As of Jun 4, 2023, the average annual pay for the Retirement jobs category in Florida is $45,609 a year. Just in case you need a simple salary calculator, that works out to be approximately $21.93 an hour. This is the equivalent of $877/week or $3,800/month.

“In addition to inflation, housing prices and increasing costs of living in Florida, retirees are also leaving for other reasons,” says Dutch Mendenhall, Founder of RAD Diversified REIT. “Higher auto and home insurance along with a 7% sales tax on already high-inflation goods can put a strain on retirement income.”

— According to a new survey, Florida just lost its top ranking as the best place for retirees. The financial website WalletHub found the Sunshine State slipped to No. 2 behind Virginia. Florida actually beat Virginia soundly in two of the three categories, measured including affordability and quality of life.

The other reasons that people leave the state after moving here are varied: “A nearly 14,000-member Facebook group for people moving out of Florida has cited severe weather, low wages, crowded beaches, changing politics, and steep housing prices as reasons people left.”

Sweet Home Alabama! Retirees priced out of Florida are moving further along coast to Baldwin County where they're finding cheaper mortgages and taxes - but the SAME stunning beaches.

But as the state becomes too popular for its own good thanks to the number of remote workers and ultrawealthy individuals who decamped there during the pandemic, many retirees are finding themselves priced out.

But plenty of people leave the Sunshine State every year — for some valid reasons. The heat and humidity, the high cost of living, the wild housing market, and a desire for variety top the list of reasons some choose to call a different state home.

What state is everyone moving to? ›

What States Are Americans Moving To? The most popular state people moved to in 2022 was Florida, while the state people most often moved from was California. Texas was the second-most popular state for Americans on the move, while North Carolina came in third.

The study found that 63% of moves to Florida were inbound, which means that more people were moving into the state than leaving it. Realtrends, a real estate news and analysis website, also reports that Florida is one of the states experiencing the most population growth.

Top states residents are leaving

The annual 2022 United Van Lines National Movers study is out! But it wasn't good news for New Jersey or New York. A similar report from United Van Lines showed New Jersey as the top outbound state, followed by Illinois, New York, Michigan, and Wyoming. The full list is below.

Cape Coral, Fla. With its desirable climate and favorable tax status, Florida is filled with popular retirement destinations. Many of our favorite retirement spots in the Sunshine State can be found along the Gulf Coast including St. Petersburg, Sarasota and Punta Gorda.

According to this methodology, Virginia is currently the best state for retirement.

Many folks choose to retire in Florida for tax reasons alone. There are no state taxes on social security, pension funds, IRAs, 401(k)s, or other retirement incomes, which makes the state specifically attractive to folks over the age of 65.

The average cost of assisted living in Florida, according to Genworth's 2021 Cost of Care Survey, is $4,000 per month. However, the range of cost across the state varies greatly, with an average low of $2,350 / month and an average high of $5,300 / month.

Top Reasons to Move to Florida

The Sunshine State is known for its warm weather and sunny days, which can be attractive to those looking to escape colder climates. Florida is a popular destination for retirees due to its warm climate, low taxes, and affordable cost of living.

Over 70 percent believe Florida's overcrowding and overpopulation is a major problem. Nearly 60 percent believe that adding another five million people to Florida's population is a serious problem. Forty percent say Florida has become a less comfortable place to live over the past five years.

Is moving to Florida good for your health? ›

The US Health and Human Services Agency for Healthcare Research and Quality create a ranking of the 50 states according to healthcare quality. In this ranking, Florida comes out 36 out of 50 states.