Florida is frequently praised for its warm climate and the absence of state income taxes, making it a popular choice for retirement. However, not everyone shares this sentiment, and some may find certain drawbacks that discourage them from retiring in the Sunshine State.
One individual, Mandy Cline, a senior account manager at 919 Marketing, has no intention of retiring in Florida despite having grown up there. Although she is still relatively young at 42, she has lived outside Florida for several years and has no plans to move back.
Financially, there are several reasons why Cline avoids the idea of retiring in Florida. One of the main concerns is the escalating housing costs, with parts of the state becoming particularly expensive, especially in cities like Miami and Tampa. Even though she owns a property in South Florida, it is not an attractive option for retirement due to high costs, and she would have to spend significant amounts to buy another property.
Another financial concern is the increasing home insurance rates, which are the highest in the country in Florida. In 2023, the average annual home insurance cost in Florida was $10,996, compared to Louisiana’s second-highest cost of $6,354. The home insurance costs do not show signs of decreasing, with Insurify projecting a 7% increase in 2024.
Moreover, climate change poses another risk in Florida, with hurricanes and flooding becoming more common, potentially endangering investments in physical assets. Cline, who experienced Hurricane Andrew, is aware of the rising insurance costs and the risks climate change poses for the future, leading her to consider alternative retirement locations.
Cline is considering moving to a drier climate like Colorado, as she prefers outdoor activities and dislikes humidity. However, she acknowledges the potential risks associated with retiring in Colorado, such as the threat of wildfires. Nevertheless, home insurance costs in Colorado are significantly lower, with Insurify projecting average annual home insurance rates of $4,367 in 2024. For financial reasons, along with concerns about housing costs and climate risks, Cline does not wish to retire in Florida.
