A retiree on Florida's Gulf Coast needs roughly $550,000 in invested assets to fund retirement versus $1.15 million for the same lifestyle on the state's Atlantic Coast, according to new numbers from the online website 24/7 Wall St. The $600,000 gap reflects differences in housing costs, insurance premiums, property taxes, and other living expenses between the two regions.
The report examined retirement factors including housing, insurance, food, utilities, transportation and healthcare. Austin Smith, a financial publisher at 24/7 Wall St., said the math was based on a three-bedroom home fairly close to the water. Moving to a place like Delray Beach or Stuart could increase annual living costs by as much as $20,000, driven almost entirely by wind and flood coverage and higher property taxes.
Property taxes are a significant issue in Florida, with voters deciding on a referendum this November to raise the homestead exemption and lower property tax bills. Opponents of the referendum say cutting property taxes will only lead to raising other fees and taxes to maintain public safety and local services. Smith said the dynamics in Florida, particularly around insurance and housing costs, have made retirement location a Gulf Coast versus Atlantic conversation.
Florida has long been a popular destination for retirees and snowbirds, but Smith said not everybody can make that southeastern move work financially. The report highlights growing regional disparities within the state as coastal property insurance costs and property values continue to diverge between the Gulf and Atlantic sides of Florida.