Retirement Retirement Planning

Here’s Exactly How Much Money You Need To Retire in Florida

Unlock the secrets to retiring in the Sunshine State without breaking the bank.

mature couple walking on the beach
Updated Sept. 24, 2024
Fact checked

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

Many dream of retiring to a tropical paradise like Florida when their working days are done. But how much money does it take to make that dream a reality?

We’ll explore how much money you need to spend your golden years in the Sunshine State. For consistency, we’ll assume a retirement age of 65 years and a retirement period of 18 years. If you want to retire early, you’ll need even more money.

Find Medicare plans with low or $0/month premium
Compare Medicare Advantage plans side-by-side to find what’s right for you
— Select a state below —

Cost of living in Florida

fizkes/Adobe elderly couple using laptop

Overall, the cost of living in Florida is about 1% higher than the national average. However, this number masks a wide range of affordability that Florida cities offer.

The cost of living in touristy areas, such as Miami and Orlando, is higher than the U.S. average, while beautiful locations like Pensacola and Tallahassee are cheaper, making it easier to keep more money in the bank when you retire.

Median retirement income

Prostock-studio/Adobe counting monthly expenses

The median household retirement income in the United States is $50,290 per year, or about $4,190 each month. Does this match the income level of other Florida retirees? It depends greatly on where in Florida you live.

For instance, in the Miami-Dade County area, the median retirement income is much less, at $33,686 per year. But in Collier County on the Gulf Coast, that number jumps to $74,313.

Is Florida an expensive place to retire?

JD8/Adobe analyzing business documents

According to data from the Missouri Economic Research and Information Center, Florida ranks 30th among the U.S. states and Washington, D.C., for affordable cost of living in 2023.

However, Florida’s index is 101, which is just one point above the U.S. average of 100, so it’s not much more expensive than average.

Earn $200 cash rewards bonus with this incredible card

There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.

The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.

This card also offers an intro APR of 0% for 12 months from account opening on purchases and qualifying balance transfers (then 19.74%, 24.74%, or 29.74% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.

The best part? There's no annual fee.

Click here to apply now.

Median home price

Fokussiert/Adobe symbol for increasing interest rates

The median Florida home price in 2022 was $414,000, slightly below the U.S. median of $457,475. 

However, the range of home prices throughout the Sunshine State is broad, from $265,000 in Hendry County in the middle of the state to $472,000 in Collier County on the Gulf of Mexico.

Median rent price

wichayada/Adobe house model at the table

If you’re choosing to rent in retirement, know that leases in Florida tend to be on the pricier side. For example, a one-bedroom apartment in Broward County (Ft. Lauderdale area) costs anywhere from $1,000 to over $1,800 per month. 

In less retirement-oriented areas, like Tallahassee, renting the same size apartment is usually less than $1,000 per month.

Grocery costs

hedgehog94/Adobe grandparents with granddaughter shopping together in grocery store

As far as food expenses go in the United States, Florida is in the middle of the pack. The average monthly cost of groceries in the U.S. is about $415 per person, and it’s about $444 in Florida. 

While this is slightly higher than the average, it’s nowhere near the price extremes in Hawaii ($638 per month) or Wyoming ($336).

Gasoline prices

pathdoc/Adobe woman hand swiping credit card at gas pump station

Gasoline seems expensive everywhere, but slightly less so in Florida. As of November 2023, Floridians pay about $3.04 per gallon of gas. While this isn’t as cheap as most other southern states, it is $0.25 less than the national average.

Car costs

guynamedjames/Adobe used car for sale

The average price of a one- to five-year-old used car in the U.S. is about $33,582. You can expect to pay around $34,519 for the same vehicle in Florida, or about $1,000 more.

If you want to buy a new car, Florida is the place to do it. It’s regarded as one of the best states for getting a great deal on a new vehicle. Just know you’ll have to pay a 6% sales tax on your purchase.

Health care

Prostock-studio/Adobe mature couple asking their doctor about pills

Florida has a reputation for a high cost of health care, especially for employer-sponsored plans. However, many retirees will use Medicare for insurance, which could reduce this otherwise expensive budget item.

However, Medicare expenditures per beneficiary were highest in Florida, so retirees should thoroughly understand their health insurance to know what health care costs they could incur.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

How to become a member today:

  • Go here, select your free gift, and click “Join Today” 
  • Create your account (important!) by answering a few simple questions 
  • Start enjoying your discounts and perks!

You’ll also get insider info on social security, job listings, caregiving, and retirement planning. And you’ll get access to AARP’s Fraud Watch Network to help you protect your money, as well as tools to help you plan for retirement.

Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.

Become an AARP member now

Wages

Astarot/Adobe stressed african american man reviewing documents

Some may see retirement as the absence of a job, but the truth is that a quarter of people ages 65-74 are still working in some capacity. Furthermore, if one spouse wants to retire early and the other is still working, wage levels are still relevant in retirement.

With this in mind, it’s important to know that Florida wages are lower than the U.S. average. Only Miami-Dade County has wages above the national weekly average of $1,334; the rest of Florida’s counties lag behind.

Utilities

Studio Romantic/Adobe senior lady reading utility bill

In a hot, humid state like Florida, it’s no surprise that the energy bill tends to be high, around $130 per month. However, other utilities like water and internet tend to be less than in other places.

Insurance

Kadmy/Adobe automobile crash accident on street

While the price of vehicles might be reasonable in Florida, car insurance is high. Full coverage auto insurance costs 37% more, and liability coverage costs 45% more than the national average.

Homeowners don’t fare any better than drivers. Florida is the most expensive state for homeowner’s insurance. Residents paid an average of $7,722 in annual premiums in 2022, more than four times the national average of $1,700.

Taxes

Koto Amatsukami/Adobe Stressed senior couple

Besides the beaches and theme parks, one of the most attractive things about Florida is its lack of state income tax. 

While many retirees aren’t relying on a salary, it’s important to note that 401(k) withdrawals are taxed as income, so Florida’s tax structure can save you money even if you’re not bringing home a paycheck.

The state sales tax plus the local tax make a combined sales tax rate of 7.02%, which is in the middle of the pack of states.

Best Florida cities for retirees

jonbilous/Adobe vacant walkway in daytona beach florida

If you want to be close to balmy beaches in retirement, cities like Daytona Beach, Jacksonville, and Pensacola offer affordable options.

If you want to avoid the coasts for fewer interactions with tourists and hurricanes, cities like Lakeland, The Villages, and Ocala may suit you better.

Total needed for a 25-year retirement in Florida

zinkevych/Adobe nice joyful elderly couple

According to MIT’s living wage calculator, a family of two retirees without dependents would need $57,628 annually to have a living wage in Florida. 

This depends on your location within Florida. For instance, living in Miami is much pricier than in Pensacola. 

Your spending needs and habits will also play a role in determining what you’ll need to retire comfortably. But if you need $57,628 on average for 18 years, you'll need to have $1,037,304.

Bottom line

wavebreak3/Adobe african american female finance advisor talking to senior couple at office

As far as retirement locations go, Florida has a lot going for it: mild temperatures, lots of activities, sandy beaches, and no state income tax. 

However, by many measures, the cost of living in Florida is higher than in many other U.S. states. And not paying attention to the cost of living in retirement is how seniors waste money.

It’s important to remember that the cost of living data is based on averages and may not predict whether you can make ends meet if you retire in the Sunshine State.


Lucrative, Flat-Rate Cash Rewards

5.0
info

Wells Fargo Active Cash® Card

Current Offer

$200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

$0

Rewards Rate

Earn unlimited 2% cash rewards on purchases

Benefits and Drawbacks
Card Details