It’s no secret that Florida has been widely nicknamed ‘the Retirement State.’ In 2025, just over 20% of the Sunshine State’s population is 65 years of age or older. This makes Florida the state with the highest percentage of seniors in the nation. 

When you take into account the ample golf courses, delicious sunshine, and array of beaches—who wouldn’t want to retire here?! But before you pack your suitcases and move down to spend the rest of your days in the sunny south, there are some financial aspects to consider. 

According to nationally recognized advisor Rob Edwards, Florida offers retirees more than just sunshine and beaches. “There’s no state income tax, strong asset protection laws, and a lifestyle that feels like vacation,” says Edwards. “But, making Florida home isn’t as simple as spending 183 days here. If you don’t plan well, your former state might still try to tax you. With rising insurance costs and costs of living, it pays to look before you head south.”

No State Income Tax

Perhaps the most talked-about financial benefit of moving to Florida is its lack of a state income tax. For retirees living off investment income, pensions, or Social Security, this can mean substantial annual savings compared to states like California, New York, or Illinois.

However, those savings only apply if Florida truly becomes your primary residence. Establishing that residency involves more than just logging time in the state—it requires documentation, intent, and consistency in your lifestyle and records.

Asset Protection Laws

Beyond tax perks, Florida is also known for offering some of the strongest asset protection laws in the nation. The state’s homestead exemption protects primary residences from most creditors, and certain retirement accounts and life insurance policies are also shielded.

This is particularly appealing for high-net-worth individuals who are prioritizing wealth preservation. As a Managing Director and Senior PIM® Portfolio Manager at Edwards Asset Management based in South Florida, Edwards has helped many families navigate this landscape. With offices in both Naples and Fort Lauderdale, Edwards and his team work with retirees to offer tailored financial strategies designed to help them preserve, grow, and enjoy their wealth—no matter where they retire.

Rising Costs

Of course, paradise isn’t free. While Florida offers financial perks, the state is not immune to rising costs. Housing prices have surged in recent years, especially in coastal and urban areas popular with retirees.

And then there’s insurance—particularly homeowners and flood insurance. With hurricane risk increasing, insurance premiums have climbed to become some of the highest in the country.

It’s also important to remember that Florida does rely on higher-than-average sales and property taxes to fund public services. That, paired with inflation in service and healthcare costs, can create budget pressures, especially for retirees on a fixed income.

Closing Thoughts

There’s no denying that Florida has much to offer retirees, from climate and culture to favorable tax and legal environments. But the decision to relocate shouldn’t be made solely on sunshine and savings.

Rob Edwards’ initial guidance underscores a larger truth: relocating for retirement can be smart, but it must be strategic. With the right planning, retirees can take full advantage of Florida’s benefits while avoiding financial surprises.

If you’re considering a move to Florida, consult a qualified financial advisor who understands both the opportunities and the complexities. For many retirees, the Sunshine State can be a perfect fit—as long as you go in with eyes wide open.

Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or tax advice. Individual circumstances vary, and retirees should consult with qualified professionals before making decisions about relocating or managing their finances.

Published by Stephanie M.

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