How do you weigh Florida’s tax benefits against its erratic weather? The natural beauty against the insurance premiums? Only you can decide: here are some factors to consider.
If you’re considering moving to Florida, you’re not alone. The third most-populated state was also the second-fastest growing state in 2023—and the fastest-growing in the two years before that. The Sunshine State also saw its largest tourism bump ever last year, with 140.6 million visitors.
So, when retiring in a place packed with natural beauty and world-class attractions, you’ll probably find yourself competing for parking spaces. What other trade-offs should you consider today, if you’re thinking of retiring to Florida in the future?
Housing
Pros
Florida’s median home price is just a little above the national average, so retirees coming from more expensive states like New Jersey and California will feel some relief. Plus, property taxes are lower than in most other states, and Florida incentivizes year-round residency with homestead exemptions.
Cons
Florida has many beautiful condo communities to choose from, but the cost of living in them is rising, fast. In 2021, when a condo collapsed in Surfside, Florida, killing 98 people, state legislators started calling for more frequent building inspections. A law, passed last year, will likely make condos safer, but could also send homeowner association fees skyrocketing. A contributing factor is the rapid rise in insurance premiums in the state, especially for older buildings and homes and condos in flood-prone areas (more on that below). Dan Severson, a president at one of Florida’s 27,000 condo associations, told ABC News that in 2023, he received insurance quotes 13 times higher than what they’d paid in 2019. For the residents at his condo, the worst-case scenario could see their fees rising from $500 a month to $3,000 to cover inspections and mandated repairs. “And that would be devastating to a lot of fixed-income senior people,” he said.
The Weather
Pros
No surprises here… Florida’s balmy winters are a huge selling point. Scraping ice off the windshield at 7am, picking your way down treacherous sidewalks, and shivering through another polar vortex—plenty of retirees are ready to leave all that behind.
Cons
As the climate warms, Florida is experiencing some unwelcome changes. The number of extremely hot days each year continues to rise. Heat is an important consideration for older adults, who are at higher-than-average risk of heat-related illness. More frequent and stronger hurricanes put lives and property at risk in Florida. Even run-of-the-mill thunderstorms can cause serious flooding.
As flooding risk increases, so do insurance premiums, and many Florida homeowners can’t do without special flood and windstorm coverage. These days, some insurers, including AAA and Farmers Insurance, are pulling out of the state entirely. Prospective Floridians should know that shopping for a house and shopping for insurance go hand-in-hand in the state. The Florida Office of Insurance Regulation offers a Homeowners Rate Comparison Tool to help Floridians estimate insurance premiums county by county.
Taxes
Pros
Florida doesn’t have state income taxes—and that applies to retirement income from 401(k)s, IRAs, Social Security benefits, and pensions. No inheritance or estate tax means that, when you live in Florida, your loved ones avoid a state tax burden on their inheritance. No wonder it’s considered one of the most tax-friendly states for retirees.
To take advantage of Florida’s tax law, you have to prove you live there at least 183 days in a year—more than half the year. To help you establish residency, keep a record of where you spend each day, and take steps that show that Florida is your home base: change your driver’s license and car registration, register to vote, and open a bank account. Even shopping locally and getting a library card can show auditors that you’re living in Florida.
Cons
While the state of Florida won’t collect on your income, they will collect at the pump: at 36.5 cents per gallon, the gas tax is higher than the nationwide average.
Wildlife
Pros
Florida will always draw people in with its natural beauty. Think world-class seashell hunting on Sanibel Island and the blue lagoons of the Keys. For gardeners, moving from colder states will mean learning how to grow in the subtropical climate, but the beauty is that, in Florida, the growing season never ends.
Birding is booming in popularity these days, and Florida is a birder’s paradise. The Everglades, famous for its wildlife, particularly migratory birds, is home to dozens of species, including the American flamingo. You could spend a few years just exploring The Great Florida Birding and Wildlife Trail, which connects 500 wildlife viewing sites across the state.
Cons
If you’re coming from Minnesota, the size of the insects in Florida may be alarming at first, and the alligators in your local waterway will take some getting used to. But in terms of Florida wildlife, there’s one word you need to know before locking in your retirement destination: pythons.
If you haven’t been to Florida lately, you might not be aware that there’s a new kid on the block. Burmese pythons—escaped exotic pets—roamed the Everglades as early as the late 70s, but it’s only since the early 2000s that their numbers have exploded. Today, they’re devouring native Florida wildlife like wading birds and marsh rabbits. They’re competing with—and also devouring—predators like raptors, panthers, and even alligators. Pythons average 6 to 9 feet in length, but the largest ever caught in Florida measured 18 feet and weighed in at 215 pounds.
How big a priority is python removal for Florida wildlife officials? The South Florida Water Management District hires Python Removal Agents at an hourly rate, plus $50 per python, plus a bonus of $25 per foot for pythons measuring more than 4 feet. If you’d rather not encounter even one foot of python in your basement, yard, or garage, add it to the “con” side of your Florida retirement pro/con list.
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Blog posting provided by Society of Certified Senior Advisors
