ST. PETERSBURG, Fla. — While Florida's population has boomed since the start of the COVID-19 pandemic, the Sunshine State is still known as a paradise for retirees to call home. But with inflation continuing to rise, is Florida still the palm-treed wonderland for folks ages 55 and older?
So, how much does it cost to retire "comfortably" in Florida? While there isn't a one-size-fits-all answer for how much you need, there is a ballpark. You may have heard figures thrown out that you need at least a $1 million nest egg to retire comfortably, but is that the case here in Florida?
A recent study from GoBankingRates looked at five financial factors across all 50 U.S. states and Washington, D.C. — how much you spend on groceries, healthcare, housing, utilities and transportation.
Taking those factors into account, the annual retirement income needed to cover said living expenses was calculated plus an additional 20 percent for the "comfortable" part of retirement, the study showed.
Based on that, the study concluded total expenses someone could expect to pay in Florida would total $58,917. To that, the study added a 20 percent "comfort buffer" totaling $14,729.
Adding all that together, a single retiree can expect to pay an average of $73,646 a year to live comfortably in Florida. If you take that sum and add together how much it would cost over 30 years, you would need at least a $2.2 million nest egg.
While there isn't a state income tax in Florida, taxes and insurance premiums are some of the highest in the U.S. The Sunshine State is still grappling with a housing insurance crisis, and the ongoing threat of hurricanes and other natural disasters continues to add to the cost for homeowners and renters.
According to unbiased.com, while Florida has the homestead exemption, overall property taxes are pricey. Sales tax, too, is one of the highest in Florida at 6 percent. However, the site says that Florida doesn't have savings, inheritance or estate tax, which could help retirees.
