Many people think of Florida as the ideal retirement state, but experts say it might not be the best spot to settle down for your golden years.
Although its climate and proximity to the shore make it popular, it is particularly susceptible to natural calamities like hurricanes, so its house insurance premiums are more expensive than those in any other region of the nation.
According to insurance company Insurify, homeowners paid an average yearly premium of $7,788 in 2022, nearly five times the national average of $1,636.
Even though there is no income tax in the Sunshine State, residents may find other taxes, such as those on purchases and real estate, to be even less attractive to retirees.
Farmers Insurance, a large national insurer, had already announced that it will stop selling insurance policies in Florida.
Florida real estate is not only more expensive to insure, but its value is also well-known for being unstable. For retirees who have more wealth invested in real estate, this could be problematic.
Florida’s lax approach to taxation contributes to its appeal to many.
Although it does not have a state income tax, Grace argued that it might not actually be less expensive overall.
According to the Tax Foundation, with an effective property tax rate of 0.91 percent, it has the 26th highest property tax as a proportion of house value of all the states.
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Iowa: A More Affordable Alternative to Florida for Retirement
Florida’s significant tourism economy is complemented by a combined average state and municipal sales tax rate of about 7%.
Therefore, according to retirement specialists, certain other states might make better places to retire.
Grace recommended that retirees think about places like Colorado, Texas, or Nevada.
Texas does not impose a state income tax, similar to Florida. A recent Bankrate analysis revealed that Florida was no longer the greatest state for retiring, with Iowa taking the top spot.
The affordability, general well-being, healthcare quality and cost, weather, and crime were all taken into account in the yearly retirement research.
Despite having colder weather than Florida, the Hawkeye State is the sixth-cheapest area to live in the US, ranking sixth, according to the Council for Community and Economic Research. This makes it a desirable spot for retirees to call home in the current economic climate.
According to Bankrate, the state’s affordability has also been supported by lower housing expenses, and homeowners insurance is less expensive than the national average.
Redfin data show that the average home price in Iowa is $239,000, which is significantly less than the $388,800 national average.
The state ranked first for high-quality healthcare services and affordable healthcare prices, but it is in the middle of the pack when it comes to taxation.
Additionally, according to Census data, nearly 20 percent of Iowa’s population is 65 and older, making it simpler for retirees to connect with people their own age.
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Source: Daily Mail
