If you’re trading in your work shoes for sandals, putting on a bathing suit and a big, floppy sun hat, you might be retiring. And what better place to relax and unwind than in the Sunshine State? Not so fast. It seems the bloom is off the citrus tree as retirees bypass Florida for other states that offer a better quality of life.
Between the extreme weather, hot humidity, rising costs, creepy critters and overcrowding, Florida is no longer the go-to state it once was. At least, that’s what a recent survey from GoBankingRates says.
Some analysts blame the slowdown in the white-hot Florida market on, among other things, a combination of a slowing economy and increased insurance rates — more than 19.8% above the national average over the last two years, according to a report from Insurify. Add to that an average home price of $386,892, an uptick in crime in many areas, termites galore and an overabundance of boomers, and you have several good reasons to stay away.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
But, as Jerry Seinfeld put it, “My parents didn’t want to move to Florida, but they turned sixty, and that’s the law.”
Five states leaving Florida in the shade
Now that Florida’s retirees are fleeing, experts predict these five states will be top retirement spots in the next ten years.
1. Texas
Apparently, it’s now all about Texas as the Lone Star State makes the list as a favorite destination for retirees ditching the Florida sunshine. Much of that popularity is based on the fact there is no individual income tax and no tax on Social Security. Not only that, GOBankingRates data uncovered at least ten Texas cities that were considered hidden gems for retirees. Cities like Frisco, El Paso and Plano all received mentions, partly thanks to low crime rates and an affordable cost of living.
2. New Hampshire
In spite of long winters and brutal cold temps, New Hampshire was ranked as one of the best states to retire in 2024, per a study conducted by Empower. Firstly, the Granite State’s tax-friendly reputation continues to be a big draw with retirees. Its minimal tax burden — at 5.1% — is the lowest of any U.S. state. Tack on no tax on Social Security benefits, and you have a retiree’s dream spot, even with a 5% tax imposed on investment income.
3. North Carolina
Violent storms aside, GOBankingRates data showed that North Carolina would be an up-and-coming state with retirees in 2025. One major reason is an affordable housing market According to U.S. News & World Report, several major cities, including Charlotte and Raleigh, have median mortgage and rent costs that don’t exceed $1,500 a month. And although North Carolina's climate varies depending on the region, many areas have a moderate climate with warm summers and mild winters, making it an impressive destination for retirees who want to avoid harsh winter weather conditions.
4. Arkansas
If you're a retiree on a fixed income, consider Arkansas, where your retirement could cost under $50,000 per year, depending on your spending habits. GoBankingRates data indicated that Arkansas’ total annual cost of living is $43,865, which is about $3,600 a month, with retirees paying $547 in healthcare and $392 in grocery costs monthly. Besides a low cost-of-living, Arkansas does not tax Social Security benefits and other types of retirement income, like pensions and 401(k) withdrawals.
5. Iowa
Original research conducted by life insurance agency Choice Mutual cited Iowa as one of the best states for retirement in 2024, and GoBankingRates concurs. The state has many attractive features, but an outstanding healthcare system, low crime rates, affordable housing, and low cost of living are all factors that clinched a place in the top five states for retirees. Retirees can anticipate spending around $400 in transportation costs and about $622 in healthcare expenses monthly, with the total monthly cost of living coming out to about $3,910.
How much you'll need to save to retire in Florida
In another study this past January, GOBankingRates determined just how much savings retirees would need to have stored up before retiring in every state. Florida, unfortunately, is on the higher end of that spectrum. Here are some key takeaways:
Annual cost of living minus Social Security income: $36,829.42
Minimum savings needed for 20 years of retirement: $736,588
Minimum savings needed for 25 years of retirement: $920,736
Minimum savings needed for 30 years of retirement: $1,105,989
If you still have your sights set on retiring in Florida, take a look at these 10 Reasons You Don't Want to Retire in Florida.
Related Content
-
A Fidelity Fund Misses Out on Soaring Bank StocksThe Fidelity International Growth Fund has outperformed over the long term, but its lagging exposure to bank stocks has weighed on more recent returns.
-
I'm 58 and just sold some stock to lock in gains. I made a killing, but will I have a big tax bill?We ask financial planning experts for advice.
-
More Than Money: The Hidden Toll of Financial Abuse of Older AdultsFinancial abuse from schemes involving tech support, government impostors, false sweepstakes, grandchild hoaxes and online shopping issues can cause thousands of dollars in losses.
-
Why is My First Medicare Bill So High?Your first Medicare bill may be higher than expected for several reasons. If your premiums aren't taken out of your Social Security benefit, the bill can be huge.
-
11 Unforgettable Road Trips to Take in RetirementMore than a travel trend, the road trip is a quintessential American tradition, with millions of us taking them each year. Here's a guide to helping you choose your next adventure.
-
I'm a Financial Professional: Here Are Four Ways You Can Use Debt to Build WealthUsing debt strategically, such as for homeownership, education and more, can lead to greater financial stability and growth.
-
Five Key Wake-Up Calls for Ambitious Business Owners, From a Biz SpecialistYour personal financial plan needs to include a formal exit strategy for your business, or you could be in trouble.
-
How StoryCorps Works and How You Can Tell Your StoryStoryCorps has recorded conversations between thousands of people, and anyone can participate. National facilitator Alan Jinich explains how to share your story.
-
I'm a Retirement Psychologist: Here's Why Doing What You 'Ought' in Retirement Beats Doing Whatever You WantTrue retirement freedom isn't about simply doing whatever you want, but about finding purpose and direction through commitments that align with your deepest values and allow you to contribute meaningfully.
-
Tactical Roth Conversions: Why 2025-2028 Is a Critical Window for RetireesThe One Big Beautiful Bill (OBBB) extended today's low tax brackets, but they may not last. Here's how smart planning now can prevent costly tax surprises later.
