10 Things You Need to Know About Retiring to Florida

Florida goes Boom(er)

Expect lots of company if you retire to Florida. For the first time since 1957, Florida has become the nation’s fastest-growing state after decades of rapid population growth, reports the U.S. Census Bureau’s 2022 population estimates. Between 2021 and 2022, Florida’s population increased by 1.9%, reaching 22,244,823. 

And out of all Florida residents, 21.6% are age 65 and older, looking over their shoulders at the newbies heading their way.

Depending on where you land, you may be surrounded by people who look like you: old. Okay, old-ish.

“Everything is geared toward retired, older people,’’ said one resident, a January 2012 transplant from upstate New York who owns a home in Fort Myers Beach (Gulf side). “All the commercials are about things like walk-in bathtubs, insurance, Lifeline, i.e. ‘I've fallen and I can't get up.’ So many volunteer activities are during the workday. It's like they don't think people move down here to work.”

Florida’s not always the sunshine state

If you’ve visited Florida infrequently and for short periods of time, you probably don’t know the full scope of Florida weather. Thunderstorms are frequent and intense, and Florida is virtually tied with Oklahoma as the lightning capital of the U.S. Oklahoma averages 83.4 flashes per square kilometer, with Florida close behind at 82.8 flashes per square mile.

And Florida is often in the bull’s-eye for hurricanes. The Atlantic hurricane season is a long one: from June 1 to Nov. 30 — half the year — peaking in August through October, according to the National Oceanic & Atmospheric Administration. On Wednesday, Hurricane Idalia made landfall in Florida's Big Bend as a Category 3 hurricane, bringing winds of 125 mph and feet of storm surge. Idalia, since downgraded to a tropical storm, has continued to make it's way through Georgia and the Carolinas, and has left around 300,000 customers without power. Total damage caused by the storm is still being assessed. Preliminary estimates of the damage put it between $9.3 billion, according to UBS, and $20 billion, according to AccuWeather.

The other side of the argument? Lots of sunshine and warm temperatures.

Florida’s a lot less taxing

Moving to the Sunshine State could save you a lot of money in taxes. Florida, one of our 10 most tax-friendly states for retirees, has no state income tax. That means no state taxes on Social Security benefits, pensions, IRAs, 401(k)s and other retirement income. It also has no inheritance tax or estate tax.

But snowbirds who maintain a second home in a colder state can’t just tap their heels together to establish residency in Florida for tax purposes. You’ll need to show that you spend more than half the year — 183 days — in Florida. But don’t expect state tax auditors to take your word for it. For starters, keep a diary or log showing the number of days you spend in each state during the year, says Tim Steffen, director of financial planning for Robert W. Baird. Here's what else to do:

Steps for Retirees to Prove Florida Residency:

• Register to vote in Florida, and if you receive a jury summons, perform your civic duty;
• Apply for a library card;
• Change your driver’s license and car registration;
• Establish relationships with health care providers in your new location;
• Open an account at a local bank, and keep receipts of ATM withdrawals;
• Shopping locally is also a good idea: State tax auditors sometimes review credit card records to determine where you were during the year;
• File a Declaration of Domicile with your local county court.

Homes are in short supply in Florida

Sure, you can find luxurious waterfront homes for $1 million or more in many Florida communities, but the median sale price of a Florida home (as of July 2023) is $404,900, up 1.6% year-over-year, according to Redfin. The U.S. average median sale price of a home is $421,774, up 1.3% compared to last year. 

Florida, like elsewhere in the country, is low on inventory in this seller's market. Florida Realtors Chief Economist Dr. Brad O’Connor said inventory is tight and notes that Florida’s current housing market is a strong seller’s market, with fewer new listings and a very tight inventory (active listings), particularly for single-family existing homes. According to Redfin, there were 137,114 homes for sale in Florida as of July 2023, down 0.8% year-over-year. The number of newly listed homes was 38,722, down 21.3% year-over-year.

You'll need plenty of insurance in Florida

The risk of hurricanes makes insuring your home in Florida much more complex and expensive than it is in many other areas. Expect to pay a higher deductible for hurricane damage — generally, 2% or 5% of your coverage amount for damages caused by a hurricane. Also, try to keep enough money in your emergency fund to cover those potential expenses.

It’s important to find out about a house’s insurability before buying it, so you don’t end up with annual premiums that are several thousand dollars more than you were expecting to pay. In addition to a standard home inspection, get a wind mitigation inspection before buying a home. The inspector will check for special construction features that help a home withstand high winds. 

“The cost to insure a home without wind mitigation features could be four times higher than a home with wind mitigation,” says Chris Heidrick, an independent insurance agent in Sanibel, Fla.

If you live in certain flood zones, your mortgage company will require you to get flood coverage. Floods aren't covered by a standard homeowners policy, but you can get coverage from the National Flood Insurance Program. You may also be able to find flood coverage from private insurers, which may have higher limits than the federal program. Ask your insurance agent about your options, or find out about private insurers selling flood coverage at the Florida Office of Insurance Regulation’s Flood Insurance Resources page.

The availability of coverage and cost of premiums can vary a lot by insurer in Florida. The Florida Office of Insurance Regulation has a great Rate Comparison Tool that provides premium estimates from insurers in your county. Among the insurers listed on the comparison tool is Citizens Property Insurance Corporation, a nonprofit created by the Florida legislature to provide insurance to property owners who can’t find coverage from private insurers. 

"Homeowners insurance in general can be tough to get when you live on a barrier island,” one Florida transplant told me. “No one wanted to insure us, so we had to use the default state insurer."

You can find an independent agent in your area who works with many companies and knows the local marketplace at TrustedChoice.com. Also see the Florida Office of Insurance Regulation’s Hurricane Season Resources for more information about your rights, insurers selling coverage in your area, and resources to help you find a policy and get your claim paid.

Florida has lots of creepy, crawly things

Florida is its very own ecosystem, and the state’s various creatures may do more than make your skin crawl. They might also eat into your budget.

For instance, dealing with termites is just part of the routine for Florida homeowners. Of the top 50 U.S. cities with the most termites in 2021, Florida scores six: Miami, Tampa, Orlando, West Palm Beach, Jacksonville and Ft. Myers, according to pest control company Orkin. In fact, Miami scored the #1 spot on the list.

A termite inspection by a pro ranges from free to $350, and the cost for treatment of termites in a 2,500-square-foot house ranges from $1,250 to $5,000.

Then there are the rats — on the beach, in the trees, and perhaps on your roof, too. Yes, they are the same rats you know and loathe; they've just adapted to the climate and are called, among other things, palm rats and roof rats. Rat control can cost homeowners upward of $300 a year.

As a Floridian, you’ll also have to keep an eye out for alligators, panthers and pythons. Oh my. Florida has an estimated 1.25 million alligators of the approximately five million in the U.S., and you might encounter them slinking across a golf course, gliding in backyard swimming pools or skirmishing with a horse. 

“Beware of Alligators” signs are posted at lakes, lagoons, parks, ponds, golf courses and elsewhere throughout Florida. Alligator attacks are rising partly due to rising temperatures, development, and people visiting their habitat more frequently, Florida Fish and Wildlife Conservation Commission experts say. Alligator attacks have increased from about six each year in 1971 to about 8 per year from 2012 through 2022, according to the FWC.

Panthers, the state animal of Florida, are another tale. While there have been no documented panther attacks on humans, they do dine on pets and livestock.

And Burmese pythons, which aren’t native to Florida, are growing in numbers in Everglades National Park — and showing up in homeowners’ pantries, cars, laundry rooms and other spots.

Life’s Not Always a Beach in Florida

There’s often a major misconception about Florida as a retirement destination: Many think the state is one big beach. An easy-to-reach beach.

Not so. Those world-famous theme parks? They’re in Orlando, in the middle of the state, an hour or so car ride to the beach.

“People who are thinking about a move to Florida should really explore the state,” says Dania Perry, a real estate agent with Century 21 Jim White & Associates in St. Petersburg. “Each of Florida's metro areas has its own vibe. The east and west coasts of Florida are very different — as different as the Gulf of Mexico and the Atlantic Ocean. North Florida features vast stretches of rolling hills and countryside.”

You already know the big destinations: Orlando, home to Disney World, Universal Studios and their smaller ilk; Miami, if you want to live out your “Miami Vice” or “Golden Girls” fantasies (whatever floats your boat; we’re in a no-judgment zone); and the Florida Keys for a laid-back lifestyle as far south as you can go in the state.

But other Florida towns belong on your Florida Retirement Planning Tour. I like the vibe of Fort Myers Beach: You’re right on the Gulf (or close to it), there are plenty of 55-and-older communities, yet it remains youthful during the high season, with plenty of young people flocking to the resort area with its boardwalk and bars. We’ve visited in late July and late October and liked it both times.

Sarasota has plenty of beaches, and the small city moves a bit slower than some of the larger towns in Florida. There is a wide array of restaurants and stores in St. Armands Circle, the island shopping center. Another bonus: access to the Sarasota Memorial Health Care system, which is one of the largest medical centers in Florida.

Is retiring to a college town — to teach part-time, take courses (free for folks age 60 or older) or just hang out with the young’uns — a must for you? Check out Gainesville, home of the University of Florida. But bear in mind that Gainesville is deep in the heart of Florida, 75 miles from any beaches.

And one more beach thing: Some of southwest Florida's beaches experience severe red tide, which would make your trip to the shore less than pleasant.

Florida’s tourists can slow you down

Ever since you were a munchkin, you knew Florida as a tourist destination. If you visited Walt Disney World when you were a kid (and when it first opened, as I did), you marveled at the crowds. As a resident, you’ll probably only be annoyed by them.

Approximately 137.6 million tourists visited Florida in 2022, setting a record for the highest visitation in state history, according to Visit Florida. 

In 2019, Florida had 131.42 million tourists, and the state has had more than 100 million visitors a year from 2010 to 2019 converging on the state’s famous theme parks, beaches and destination spots such as the Keys and Everglades National Park.

The high season, when the snowbirds, holiday travelers and spring-breakers all converge on Florida, lasts roughly from mid December to mid April. There’s also summer season, lasting from mid June to mid August, when the kids are out of school and summer vacationers hit Florida. That makes for a lot of people on the road, an annoyance to the locals when they need to run errands.

Florida sunshine can take a toll on your health

Many of you beach bums in the swingin' '70s knew nothing of SPF. It was baby oil, baby, slathered on your tender skin to enhance rays of sunshine to deepen your tan. Little did you know.

The sun on exposed skin was dangerous then and is dangerous now, especially if you're a tenderfoot moving from the Midwest or Northeast to year-round sunshine in tropical Florida. Sunburn can cause premature wrinkling and uneven skin coloring. And too many sunburns or too much sun will cause your skin's texture to change. 

"The skin can become tough and leathery," according to the Florida Institute of Neuroscience. "You may also notice more wrinkles. The sun can also cause brown, red, yellow, or gray spots in the skin called sun spots." 

And the most serious result of too much sun, of course, is skin cancer. Your risk for getting skin cancer increases the more sun exposure and sunburns you have.

Sun worshippers are urged to stop sunbathing, avoid the sun between 10 a.m. and 4 p.m. (when the sun's rays are most damaging), and use broad-spectrum sunscreens. And when you are on the beach, sit under an umbrella or some other shaded protection from the sun.

Scammers like Florida as much as retirees

You can run but you can't hide from scammers. You can also retire, move to Florida, and you still can't hide from scammers. That's because the Sunshine State ranks No. 4 in the U.S. for fraud, with 1,446 reports per 100,000 residents in 2022, according to the Federal Trade Commission's Consumer Sentinel Network report.

Among the most common scams in Florida are debt collection, identity theft and imposter scams. The latter is a particular scourge for older folks who might become more susceptible to deception as they age and cognitive skills decline. Scammers take on many guises, from romantic interests to government officials, in an attempt to talk would-be victims out of their money and personal information. And the stakes get higher the older you get. 

Although younger people reported losing money to fraud more often than older individuals, when people aged 70 or older fell victim to fraud, the median loss was much higher. 

In 2022, the median fraud loss for victims ages 70 to 79 was $1,000 and for victims 80 and older, it was $1,674. 

The best expert advice: Hang up or hit delete if a stranger calls or emails out of the blue asking you to verify information about your bank account, credit cards, Social Security benefits, Medicare coverage, tax returns and so on. It's a scam.