I Planned to Retire in Florida, but These 2 States Replaced It – Here’s Why

For decades, the dream was clear: palm trees, endless sunshine, no state income tax, and a margarita by the pool. Florida was the gold standard retirement destination, practically written into the script of the American dream. When I first started planning my retirement years back, Florida seemed like the obvious choice. Everyone I knew who retired went there or talked about going there. Yet somewhere along the way, I started having serious second thoughts.

The reality check hit hard when I began examining what living in Florida actually costs now versus what I’d imagined. In 2023, Florida’s net migration fell by half from the previous year, and I was beginning to understand why. While in 2022 Florida netted almost 250,000 new Floridians from other states, that number fell to just over 126,000 in 2023, and the number of people leaving the state was the highest since the Great Recession in 2008. Something was clearly changing. After months of research, soul searching, and actual visits to different states, I made my decision. Two states emerged as better options than Florida for my retirement plans: North Carolina and South Carolina. Let’s dive into exactly why.

The Financial Reality That Changed Everything

Let me be honest here: money talks, especially when you’re on a fixed income. Florida ranks 41st for retirement destinations, and while it ranks strongly on taxes and abundance of other retirees, it ranks poorly for health care, home insurance costs and natural disasters, which create significant cost disadvantages for retirees. That’s from Bankrate’s 2025 study, and those numbers stopped me cold.

The home insurance situation in Florida is honestly terrifying. The average annual home insurance premium in Florida was $14,140 in 2024, and a 9% increase was projected for 2025, adding an extra $1,320 to annual premiums and raising average annual costs to $15,460. Compare that to the national average, and you’re looking at paying more than four times what most Americans pay just to protect your home. With surging housing costs, limited access to essential care services, and rising utility bills, older Floridians are finding it increasingly difficult to maintain their desired quality of life, according to AARP Florida’s State Director.

Both Carolinas offered me something Florida couldn’t: financial breathing room. I could actually afford to live comfortably without watching every penny or worrying about my insurance company dropping me after the next hurricane season.

Why North Carolina Won My Heart

North Carolina wasn’t even on my radar initially. I thought it would be too cold or too boring. Turns out, I was completely wrong on both counts. North Carolina experienced a net influx of 20,369 retirees aged 60+ in 2023, making it the second most popular retirement destination after Florida according to SmartAsset’s study.

North Carolina ranked in the top 30 for all three categories of cost of living, Medicare performance, and taxes – it ranked 26th for cost of living, 14th for Medicare performance, and 22nd for its individual income tax situation, with a relatively low individual income tax rate of 4.25 percent. The state also has competitive property and sales tax systems. Housing costs sealed the deal for me. Several major cities, including Charlotte and Raleigh, have median mortgage and rent costs that don’t exceed $1,500 a month.

The variety in North Carolina is what really surprised me during my visits. You can live in the mountains around Asheville, enjoy college town vibes in Chapel Hill, or settle near the coast in Wilmington. Each area has its own personality. The four seasons might seem like a drawback to some Florida purists, but honestly? I missed fall. I missed the changing leaves and wearing a sweater without feeling ridiculous. The climate here feels…normal. Human, even.