From armadillo infestations to natural disasters, the Sunshine State isn’t always the postcard-perfect retirement getaway it’s cracked up to be. Still, transplants are flocking to Florida in massive numbers.
According to a recent NBC News report, more than 700,000 people moved to Florida in 2022 alone — making it the second-fastest-growing state, behind Texas. But it’s not all sunshine and balmy beach weather for those living there. Nearly 500,000 people left Florida in 2022, as well, a mass exodus NBC attributed to “soaring insurance costs, a hostile political environment, worsening traffic and extreme weather.”
It begs the question: Why are so many retirees setting their sights on the Sunshine State? For some, the pros simply outweigh the cons.
Pro: It’s a travel hub
According to AARP, there are a lot of reasons to retire in Florida. Thanks to the success of its tourism industry, the Sunshine State is a great place for traveling retirees to settle down. There are 19 commercial airports between the Panhandle and the Keys, including three of the country’s busiest hubs.
Older adults anticipating regular visits from family or interested in traveling during their golden years can rest assured that flights will be plentiful.
Con: the weather
WalletHub issued a report of which states were most affected by natural disasters last year. Florida ranked No. 4, with only Texas, Louisiana and Mississippi being more prone to bad weather.
From 1980 to 2024, the National Centers for Environmental Information confirmed 84 weather/climate disaster events within the state that each exceeded $1 billion in damages. These included seven droughts, four floods, five freezes, 27 severe storms, 32 tropical cyclones, four wildfires and five winter storms.
Pro: Those famous tax breaks
As pointed out by personal finance company Kiplinger, Florida famously doesn’t just not tax retirement income — it simply does not tax income at all, a rarity in the United States. That’s good news for 401(k) distributions and other retirement funds.
Florida also has more sales tax holidays than any other state and below average property taxes. Its combined state and local sales tax rate of 7.02% is also comparable to most other states.
Con: Unexpected costs
Many retirees excited by Florida’s many tax breaks may be disheartened to hear the state is not considered all that affordable. U.S. News and World Report ranked it within the bottom 24% of the country for affordability.
According to Yahoo Finance, Florida homes are significantly more expensive.
“For example, housing prices increased by 22.7% from the year before as of the third quarter of 2022, according to Statista,” the news outlet reported. “Increases since then have not been as dramatic, but they’re still going up — the median home price in Orlando is $400,000, Redfin reports. So if you intend to retire in Florida, you’ll need to be financially prepared from the get-go.”
Zillow currently values Florida homes ($392,306) 12.82% higher than the average U.S. home ($347,716).
Health care can also be costly.
“That’s especially problematic for retirees, who are more likely to need expensive medical care,” Yahoo Finance reported. “While Medicare does cover most medical expenses for retirees over 65, there may still be out-of-pocket costs. These include deductibles, premiums and co-pays. There are also costs like long-term care, dental care and vision care that are typically not covered. Plus, Florida’s aging population could further push prices upward for everyone.”
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