Increased cost of living has some retirees fleeing Florida (2024)

FAQs

Why are seniors moving out of 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.

Once considered the ideal place to live out one's golden years, Florida is quickly losing favor with retirement-aged folks. Remote workers and the wealthy are flocking to the state and driving up home prices, leaving those on a fixed income feeling the pinch.

Housing costs, for example, can vary significantly between regions, underscoring the need for strategic location choices to balance your budget with your lifestyle preferences. Yahoo Finance estimates that a comfortable retirement in Florida in 2024 may require an annual budget of approximately $74,000.

Sales tax: Florida has a relatively high sales tax rate of 6%, which can add up over time for retirees who are living on a fixed income. Crowds: Florida is a popular destination for tourists, which means that some areas can be very crowded during peak season.

Gainesville. Gainesville, which is home to the University of Florida, may not be the ideal retirement destination for many — the city has a high crime rate, above the national average, according to Norada.

But while many people from that generation have indeed retired to the Sunshine State, recent reports indicate that boomers are now abandoning Florida for an unlikely alternative: Southern Appalachia, a region that includes Northern Georgia, the Carolinas, and portions of Tennessee and Virginia.

Florida has seen a population boom in recent years, but many longtime residents and recent transplants say rising costs and divisive politics have them fleeing the Sunshine State.

By Percentage: The highest percentage of people ages 65 and over live in Florida. The senior population of Florida represents 19.36 percent of the total.

Many retirees fall far short of that amount, but their savings may be supplemented with other forms of income. According to data from the BLS, average 2022 incomes after taxes were as follows for older households: 65-74 years: $63,187 per year or $5,266 per month. 75 and older: $47,928 per year or $3,994 per month.

Can I retire in Florida on $3,000 a month? ›

Q: Can I retire in Florida on $3,000 a month? A: According to a GOBakingRates study, there are several cities in Florida where you can live on $3,000 — or even less — each month, including Pensacola and Panama City.

In 2018, 471,769 residents of Florida received a total of $11.6 billion in pension benefits from state and local pension plans. The average pension benefit received was $2,051 per month or $24,611 per year.

On the west coast of Florida, things tend to be more laid-back and slower-paced. Even the bigger cities like Tampa and St. Pete are much less crowded than the major east coast cities while still offering all you could ever want in the way of restaurants, shopping, and entertainment.

Q: Is Tennessee or Florida better for retirees? A: The answer to this question depends on your specific interests and why you're moving in the first place. Tennessee's cost of living is below the national average, while Florida's is above. However, Florida provides easy beach access and has warm weather year round.

In January 2024, WalletHub released its list of the best states for retirement, and Florida ranked as the best state in the U.S. for retirees. But a more recent study from Seniorly, a platform for senior living resources, says Florida is one of the least affordable states to retire to.

Florida has seen a population boom in recent years, but many longtime residents and recent transplants say rising costs and divisive politics have them fleeing the Sunshine State.

1. Iowa. Iowa ranks as the number one state to retire to. It offers an affordable cost of living and home prices and a strong economy, making it an attractive place to make retirement savings last longer.