The Average Income Of Retirees That Live In Florida Compared To The United States Average
For decades, Florida has been the preferred state for people to spend their twilight years in plenty of sunshine, away from freezing snow, and without their benefits being taxed away. And there are a lot of people of retirement age residing in Florida. More than a quarter of people living in Florida were over the age of 65, according to the recent 2020 census. As of 2023, Florida had the second largest population of seniors with more than 4.92 million people residing in Florida over the age of 65, a study by Consumer Affairs stated. By 2045, Florida officials project that people over the age of 65 will grow to 8.4 million people, making up more than 30% of the state's population.
And it turns out those who have been retiring in Florida have somewhat more retirement income than the average American.
According to an analysis of U.S. Census Data by Wisevoter, retirees have an average household income of $27,617 a year. In Florida, the average annual household retirement income was $30,158. That isn't the highest retirement income in the U.S. In fact, out of 50 states and the District of Columbia, Florida was ranked by Wisevoter as having the 15th highest income. (The nation's capital takes the highest retirement income per household spot at $43,080 a year. Alaska, at $36,023 a year, has the number two spot.) Nevertheless, it is an indicator that Florida is a retirement destination for people who make higher than average salaries. And with the cost of living growing in the Sunshine State, Florida might not be a great place to retire for someone with a limited fixed-income.
Wealthy people have been moving to Florida
Florida is among the best places for people to retire due to its warn weather and because the state doesn't tax retirement benefits, nor does it have an estate tax. Florida doesn't have a state income tax either, which is why younger high-income households have also been making their way to this state. Thanks to changes in the nation's tax law in 2017, the most you can deduct for state and local taxes on your IRS form is $10,000. That includes state income taxes. As a result, people with higher incomes had an incentive to relocate to states with no state income taxes. (Note: The deduction cap of state and local taxes may be raised to $40,000, The Hill reports.)
When Covid-19 hit, many business executives and well-paid professionals who lived and worked in New York, Illinois, and other high-tax states opted to work remotely and shift their residences toward Sun Belt states, with Florida being the most popular destination. According to the Florida Chamber of Commerce, Florida experienced a net income migration of $39.2 billion between 2020 and 2021. As of 2024, the figure declined to $36.05 billion, though that is still 3.5 times that of Texas, which is the No. 2 recipient for net income migration, a more recent report from the Florida Chamber said.
What does this have to do with retirement income? Social security checks are calculated by averaging the 35 highest income years in a person's life. The higher the average, the bigger the social security check. Though there are a lot of Floridians who don't make a lot of money. Investopedia pointed out that Florida's median household income of $73,311 (as of 2023) was still lower than the national average of $80,610. Florida was also tied with Alabama for having the seventh-highest income inequality, a report from Statista stated.
Living in Florida has become more expensive
Unfortunately, the influx of higher-income earners caused housing costs to skyrocket, further stressing Florida's working- and middle-class. On top of that, Florida has one of the most expensive insurance rates for homes in the U.S., a trend that will likely grow worse in the future due to the affects of climate change, an expert told Money Digest. In terms of automobile insurance, Florida has the highest premiums in the nation.
The cost of living grew particularly high within in the internationally-known Miami/Fort Lauderdale/West Palm Beach metropolitan area in southeast Florida. As of May 2025, the median sales price for a single-family home was $640,000 while the price of a condo was $355,000, according to Florida Realtor figures analyzed by the South Florida Business Journal. In terms of rent, as of May 2025, a household must earn more than $111,239 a year to afford the average South Florida monthly rent of $2,781 a month, according to the latest Waller, Weeks, and Johnson rental index, which analyzes lease data from Zillow. This is within a state where, as of June 2025, the average annual salary was $49,261, according to ZipRecruiter.
Still, there are affordable places to live in Florida. For example, it is 13% cheaper than the national average to live in the Florida Panhandle area of Pensacola. And a retiree with $250,000 in savings can reside in the retirement region of Port St. Lucie for about seven years before going broke. And Florida's housing market is not as hot as it used to be. Thanks to declining home sales, average prices for single-family homes and condos are softening, according to a recent report from Florida Realtors' research department. Should that trend continue, more retirees may be able to afford to live in Florida in the future.