Retirement Planning in Florida

The state where retirement is the main industry

Florida has the highest share of residents over 65 of any large state. According to the U.S. Census Bureau, 2020 to 2024 American Community Survey, about 21.3 percent of Floridians are 65 or older, about 67.6 percent of homes are owner occupied and the median home is valued near $359,000. Retirement communities, golf towns and coastal condos make up whole counties, and the market for advisors, insurers and health plans is built around older customers.

That has benefits and risks. There are plenty of professionals who understand retiree needs, and there are also plenty of salespeople who prey on them. A retirement advisor works for you by laying out the numbers, so you can judge any offer against them.

Taxes: what Florida does and does not do

Florida’s constitution bars a personal income tax. Social Security, pensions, annuity payments, IRA and 401(k) withdrawals, interest, dividends and capital gains are not taxed by the state, and there is no estate or inheritance tax. That removes one layer of planning, and it changes the math of a few decisions.

Roth conversions turn on federal brackets alone, so the years between retirement and the day Social Security and required withdrawals begin can be a window for partial conversions at a low federal rate. People who retire to Florida from a high-tax state often wait to take large withdrawals or convert until they have completed the move, since the old state may try to tax income earned while you were still a resident. Federal law generally bars a state from taxing retirement plan distributions paid to someone who lives elsewhere, which works in your favor once you have left. Our tax planning guide explains the tradeoffs.

Florida makes up for the missing income tax with sales tax, property tax and fees, including documentary stamp taxes on deeds and mortgages. Those are modest in a retiree’s budget compared with insurance.

Property tax rules for homeowners

Owners who make Florida their permanent residence can apply to the county property appraiser for a homestead exemption, which lowers the taxable value of the home. The deadline is early in the year, and you must own and live in the home on January 1.

• Save Our Homes. After the first year, the assessed value of a homestead can rise by no more than 3 percent a year or the change in the consumer price index, whichever is lower, even if the market value jumps.
• Portability. When you sell one Florida homestead and buy another within the allowed time, you can generally carry much of your accumulated Save Our Homes benefit to the new home.
• Senior and other exemptions. Many counties and cities offer an added exemption for lower-income owners 65 and older, and Florida has exemptions for disabled veterans, surviving spouses and people with disabilities.

Amounts and income limits change, so confirm current terms with your county property appraiser. A homestead is also protected from most creditors, and the constitution limits how it can be left by will when you are survived by a spouse or minor child, so have a Florida attorney review your deed and estate plan.

The Florida Retirement System

Teachers, state employees and many county and city workers belong to the Florida Retirement System. Members choose between a traditional pension plan and an investment plan that works like a 401(k), and the decision shapes lifetime income. The pension pays a formula-based benefit for life, while the investment plan gives control and the ability to leave the balance to heirs, with market risk. Some members can also join a deferred retirement program that lets them keep working while their pension builds up in an account. Because those choices are hard to undo, an advisor models both under several assumptions about how long you live and how markets behave. Many public employees also did not pay Social Security through their jobs, and the Social Security Fairness Act, signed in January 2025, repealed two rules that had reduced benefits for them and their spouses, so request a fresh estimate. Our retirement planning guide covers the broader sequence.

Insurance and condo costs in the budget

For many Florida retirees the biggest cost is not a tax at all. Homeowners premiums have risen sharply, some insurers have left the state and many owners have moved to Citizens Property Insurance, the state’s insurer of last resort. Hurricane deductibles are often a percentage of the home’s insured value, and flood is covered separately, usually with a waiting period. An advisor builds a line for premiums and keeps a reserve large enough to cover a deductible, since a storm can arrive just when markets are down.

Condominium owners face rising monthly fees and, in many older buildings, special assessments for repairs and reserves required after the Surfside collapse. Ask your association for the reserve study and inspection reports, and decide whether the building is a good place to spend your later years.

Want a second opinion on your income plan?

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Health coverage and long-term care

Medicare begins at 65. Before then, retirees can use a retiree plan, COBRA or a marketplace policy. In Florida, Medicare Advantage plans are widely marketed, often with low or zero premiums, and choosing between them and traditional Medicare with a supplement depends on the doctors you use, the prescriptions you take and where you travel. The state’s SHINE program, which stands for Serving Health Insurance Needs of Elders, offers free counseling for Medicare questions, a good second opinion before enrolling. Annual enrollment lets you change plans each fall, and it is worth a look every year, since plan details change.

Long-term care is the largest unknown. Costs in Florida for assisted living, nursing homes and home care are high. Florida Medicaid covers long-term care for people who meet income and asset limits, with a look-back period for gifts, so giving away property is not an easy fix. Continuing care retirement communities offer a staged path on one campus, with an entrance fee and monthly charges and a contract that an attorney should review. Families can compare long-term care insurance, a life policy with a care benefit and self-funding.

Scams aimed at retirees

Florida’s older population makes it a target for fraud. Common schemes include calls claiming to be from Medicare or the Social Security Administration, offers of free medical equipment, investment pitches promising high returns, deed and title scams, contractor fraud after storms and romance scams. Never give your Social Security number or bank details to someone who contacts you, hang up and call the agency yourself, and ask a trusted person or advisor before moving money. The Florida Office of Financial Regulation and the Department of Financial Services publish warnings and take complaints.

Making the money last

A retirement portfolio has to pay for decades. Many advisors divide it into layers: cash and short-term bonds for the next few years, bonds and balanced funds for the middle years and stocks for the later decades and for inflation. The size of each layer depends on how much steady income you have. A retiree with a large pension can hold more stocks than one living mostly on savings. The plan should test a bad market right after you retire. Our investing basics guide explains diversification. Keep your estate planning documents current, including a will, a durable power of attorney and a health care surrogate designation, since Florida has its own forms and rules.

Staying, moving within Florida or moving back

Many Florida retirees eventually ask whether to stay in the home they bought at 60 when they are 80. Stairs, driving at night and distance from children can change the answer. A plan can price three paths: staying with help at home, moving to a smaller place or a community with services, or moving closer to family in another state. Selling a home triggers questions about capital gains, the loss of the homestead benefit and the cost of a new purchase, and moving out of state ends Florida’s tax advantages. An advisor lays out the numbers so that the choice is made on facts and on what matters most to you.

Costs of retirement advice

Ask for every cost in writing, including fund expenses and surrender charges.

Choosing a retirement advisor in Florida

1. Have the advisor explain how savings and pensions become a monthly paycheck.
2. Check experience with the Florida Retirement System and with newcomers from other states.
3. Look up registration with the SEC, FINRA and the state regulator.
4. Collect the complete yearly cost on paper.
5. See whether both spouses’ Social Security claiming ages are compared.
6. Meet a few advisors, and slow down if anyone opens with a product or a free dinner seminar.

Frequently asked questions