3 Reasons You Shouldn’t Retire in Florida With a Monthly Budget of $5K or More

Caitlyn MoorheadTue, February 24, 2026 at 2:01 PM UTC

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lisatop / Getty Images/iStockphoto

If your retirement wish list includes white-sand beaches, warm weather and no state income tax, you’re probably thinking of Florida. But if you’re retiring with $5,000 or more per month, the Sunshine State might not give you the best return on your hard-earned savings.

For retirees with bigger budgets, other states can offer stronger long-term value, better lifestyle perks and fewer financial trade-offs. Here’s why Florida may not be the smartest choice — and where your retirement dollars could stretch further.

1. Weathering High Insurance Costs

Florida has hurricanes every year without fail. Some are benign, but others could have a devastating impact on your home and finances. While many are willing to roll the dice, if you have the means to retire elsewhere, it’s something to consider. Due to the extreme weather conditions, retiring in Florida means always being ready to evacuate if needed, which isn’t necessarily a relaxing way to spend your golden years.

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Homeowners insurance is essential, and premiums in Florida can be substantially higher due to the increased risk of hurricane damage. Retirees should carefully consider these insurance costs in their financial planning. If you are debating a future move, keep in mind that climate change could exacerbate these risks, potentially leading to even higher insurance costs and property damage concerns.

2. Volatile Real Estate Market

Like with many popular locations, real estate prices in Florida have risen dramatically in the past few years, but Florida is prone to “boom and bust” market cycles. As interest rates are on the rise, there is a very real threat of a declining market.

This means buying a retirement home in Florida has some serious risks for your long-term wealth.

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3. Limited Cultural and Educational Opportunities

When choosing a place to retire, it’s not all about the numbers. Some locations offer more variety in recreational activities, access to nature or even food scenes than others. However, Florida can be seen as a one-trick pony. Beautiful beaches and sunshine, yes, but even that can get old after a while.

In fact, some retirees seeking intellectual stimulation and cultural experiences may find Florida lacking in world-class museums, theaters and educational institutions. So if your budget has more than enough wiggle room, you may want to consider states like California or regions in the Pacific Northwest, which might have higher living costs but offer unmatched scenic beauty, gourmet dining and a wide variety of museums and entertainment.

So, Where Should You Retire With a Budget of $5K or More?

The bottom line is that while Florida boasts no income tax, it doesn’t mean it’s cheaper overall to live there. Though advantageous in some ways, it can be a drawback for wealthier retirees. Keep in mind, with a budget of over $5,000 a month, the absence of this tax benefit might not outweigh the downsides.

So, no matter if you have diligently saved for retirement or have come into a financial windfall, it’s important to review your options for where to retire. Florida has some advantages, but if you don’t want to deal with the negatives, several other places may be more desirable.

If you have a substantial retirement budget, you may want to consider alternative retirement destinations that offer more favorable financial conditions. Some options include:

Texas: With no state income tax and a lower cost of living than in many states, Texas is an attractive option for retirees.

Arizona: Known for its beautiful landscapes and affordable housing, Arizona offers a great quality of life for retirees.

Nevada: Another state with no income tax, Nevada can be an appealing choice for those with substantial retirement savings.

Tennessee: Tennessee boasts no state income tax and a lower cost of living, making it a budget-friendly destination.

Jacob Wade contributed to the reporting for this article.

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