Thanks to its gorgeous beaches, perfect weather, a wide variety of outdoor activities, and accessibility for seniors, Florida has long been considered the perfect state for retirement.
However, things have certainly changed in the Sunshine State over the last few years, and now, many retirees are actually leaving Florida behind. Let’s find out why they’re leaving and, maybe more interestingly, where they’re going.
Why Are Retirees Leaving Florida?
Realistically, there are two main reasons why retirees are leaving Florida: the weather and the cost of living.
Florida’s weather was once considered idyllic, but recently, the state has seen a wave of hurricanes, aggressive tropical storms, and intense flooding, which most experts agree are the direct side effects of climate change.
Florida Has Lost Its Appeal
In a recent study from Seniorly, a platform for senior living resources, Florida has become one of the least affordable states to retire to. It is currently the 15th most expensive state to retire to thanks to high rent.
Although the state has no income taxes, other unexpected living costs can significantly reduce the fixed income many retirees rely on.
Florida Has Become too Expensive for Retirees
The increase in extreme weather is not only dangerous for local residents but also increases the cost of living in the state.
From new HOA fees to higher homeowners insurance costs, as well as a general jump in the price of homes, Florida is no longer as affordable as it once was. For these reasons, many retirees have decided Florida is no longer the best option. Instead, they’re heading to these five states.
Tax Hikes in Florida Make It Harder for Retirees
While the appeal of “no state income tax” might incite you to move to Florida, the state makes up for the absence of that tax with state and local taxes that can take a bite out of your savings.
The combined state and local sales tax averages 7.00% in Florida, according to the Tax Foundation. Retirees from states like Michigan, Pennsylvania, and Massachusetts are accustomed to paying a lower average tax rate than that.
The Midwest and South Are the Best Places to Live
Looking at the top places to retire to in the US through the Bankrate report highlights an interesting trend that is starting to emerge. The Midwest and South are featured prominently among the top retirement destinations.
The Northeast and West Coast dominated the bottom ranks, largely due to their high cost of living.
New Hampshire: Small, Cold, and Tax Friendly
As one of the nation’s northernmost and smallest states, New Hampshire is not as well known as Florida. However, the Granite State has much to offer retirees, specifically incredibly low taxes. In fact, New Hampshire doesn’t tax Social Security benefits or retirement income of any kind.
Additionally, while the winters can certainly be cold, the spring, summer, and fall months are beautiful, and the state has a wide variety of outdoor activities for seniors and their families.
Texas: Affordable and Safe
The Lone Star State is expected to become one of the most popular destinations for retirees in 2025. With no Social Security or individual income tax, beautiful small cities, and sprawling countryside, there are several reasons why retirees would choose to call Texas home.
Plus, the weather is warm all year round, the cities are affordable, and there is very little crime. All of which are certainly draws for America’s seniors.
Arkansas: The Second Lowest Cost of Living in the US
According to one report, Arkansas is the second most affordable state in the nation. In fact, the median price of a home in Arkansas is only $210,371, which is far below the country’s overall median of $412,300.
That means retirees can live comfortably in a home they love without compromising on space or style.
North Carolina: Reasonably Priced Homeowners Insurance
Like Arkansas, North Carolina also boasts low housing costs. A US News & World Report states that several beautiful cities, including Raleigh and Charlotte, have a median mortgage and rent cost of just $1,500 per month.
It’s also important to note that North Carolina has low property taxes and reasonably priced homeowners insurance compared to Florida and many other states. Not to mention the fact that it’s right on the Atlantic coast and provides beautiful landscapes for retirees.
Iowa: One of the Best States for Retirees
One life insurance agency, Choice Mutual, awarded Iowa the title of best state for retirement in 2024. With its fantastic healthcare system, low crime rates, and affordability, Iowa may become the next hot spot for American retirees.
As it’s less populated than other US states, there are also more homes available at a fair price, along with gorgeous countryside to explore.
Delaware: The New Best Place to Retire
Despite being one of the smallest US states, Delaware was named the best state to retire to in 2024. The state offers a variety of benefits that make it extremely attractive to retirees, including its tax-friendly environment.
The state does not have any local or state sale taxes and it does not tax Social Security benefits or have an inheritance or estate tax. This makes it a great state for retirees who are looking to live within their fixed budgets.
West Virginia: Take Me Home
West Virginia is almost as good a place to retire as Delaware thanks to its affordability and low taxes. The mild climate and natural beauty of the state make it an attractive place for retirees who are looking to enjoy the outdoors with their newly allotted spare time.
It also helps that the state offers several tax advantages for retirees, including an exemption for Social Security benefits from state income tax.
Georgia: A Slice of Paradise
From its mild climate to its low cost of living, George is a comfortable place for retirees to call home. The Peach State is also home to a range of quality healthcare facilities thanks to its larger cities like Atlanta, Augusta, and Savannah.
Like West Virginia, Georgia is full of natural beauty just ready to be explored. From historical landmarks to urban attractions in the city, there is always something to do.
South Carolina: An Affordable Place By the Beach
South Carolina has often been considered one the great places to retire thanks to its affordable cost of living and tax benefits. Shockingly, South Carolina is new to the top ten best state to retire to list thanks to its improved affordability.
The state also has gorgeous beaches to enjoy during the summer and a short and temperament winter that won’t keep people inside for long.
Missouri: A Peaceful Place to Call Home
From its mild climate to its affordable cost of living, the Show-Me State is an attractive choice for many retirees. The state’s central location in the US makes it easy to travel to other parts of the country, which is convenient for retirees who may what to visit family to take trips across the US.
The state also offers a diverse array of attractions from museums and concerts to sports and beautiful natural areas like the Lake of the Ozarks.
What Is Most Important to Retirees?
It’s interesting to note that while American retirees certainly want to find a home and a location for their final years that they love, the leading factor in their decision making process seems to be price above all else.
Great weather, low crime rates, and accessibility are important, but they seem to be secondary. The truth is that, with the cost of living as it is today, affordability simply has to be number one.
Retirees Don’t Have as Much Saved as You Think
The Baby Boomer generation, currently aged 60 to 69, is preparing or stepping into retirement. And many of the younger generations, specifically Millennials and Gen Zers, believe that Boomers have plenty of money to do so since they grew up when the cost of living was actually reasonable.
However, the data proves that’s simply not the case. According to Nasdaq, the median retirement savings of Boomers is a mere $202,000, and 43% have no savings at all.
The Current Cost of Living Is Making Retirement Much More Challenging
Even those who did work to create a substantial retirement fund over the years have found themselves in trouble, as the cost of living today is far more than anyone could have expected.
Boomers who have saved hundreds of thousands of dollars, invested wisely, and even own a home without a mortgage have realized they may still not have enough money to live as comfortably as they hoped to for another decade or two.
What Will Happen to Florida When the Retirees Leave?
While some Florida retirees are abandoning the state and even more newly retired Americans have chosen other, more affordable states for their later years, some wonder: What will happen to Florida?
There’s no doubt that if enough seniors decide to choose another state, Florida’s housing market and overall economy will suffer. However, just how much this change will affect the Sunshine State remains to be seen.
Washington: The Third Least Desirable Place to Live
Washington, beating California as the third worst state for retirement, ranks as a less-than-ideal place to retire. The state’s climate, traffic, high cost of living, and taxes, are particularly in more desirable areas.
Washington is home to stunning natural beauty, but the rural parts of the state may have limited access to necessary healthcare and the risk of wildfire is a considerable risk that many have to account for.
New York: High Prices Don’t Make Up for the Attractions
The second worst place for retirement is New York. While the state offers cultural attractions and vibrant urban life, these factors can make it a less desirable place for retirees looking for a more affordable, relaxing, and retirement-friendly environment.
With higher crime rates, higher healthcare costs, and a higher cost of living, New York isn’t kind to the limited income many will be living with.
Alaska: The Worst Place to Retire To
Alaska remains the least favorable state for retirees, ranking 50th for the second year in a row. The state’s high cost of living, harsh climate, and limited healthcare access make it a difficult place for older retirees to thrive.
While the natural beauty and unique lifestyle can appeal to some, the lack of important factors that lead to a higher quality of life in retirement makes it a tough sell for older adults looking to relocate.
Florida Isn’t a Lost Cause
While Florida does have its drawbacks, the state still places in eighth place on the Bankrate report for the best states to retire to.
This reminds us that while affordability is important, other factors like activities, climate, and proximity to family are also significant when choosing a retirement location that best suits a person’s needs.
