Texas or Florida? Which Should You Retire In?

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When it comes to retiring, the most important question one can ask is where they must reside in their work-free years. While some prefer the exotic call of Maldives and Thailand, most prefer to retire at home. If you wish to retire in the U.S., Texas and Florida are good options, but which state should you retire in?

You should retire in Texas because of its low cost of living, cheaper real estate, and zero income tax burden. While Florida may allow you to stretch the dollar to an extent, you can make your money go a long way in Texas. 

Of course, the decision comes down to more than just the cost of essentials. That is why this article covers Texas and Florida in detail, so you can learn the advantages and disadvantages of retiring in them respectively. By the end of this piece, you’ll know where you should retire.

Texas: A Brief Overview

Texas is a state of the United States of America, ranked as the second-largest U.S. state by both population and area. Its date of statehood is 29th December 1845. The state is also nicknamed the Lone Star State for its great struggle for independence from Mexico. 

Austin is the capital of the state. The state shares its respective borders with Louisiana, Arkansas, Oklahoma, and various Mexican states. Houston, a city of Texas, is ranked to be the most populous city, while San Antonio is the second-most populous city in the state. 

Spanish people were the first to settle in Texas. After several conflicts related to the population and claiming land, an issue was raised with the government; the state finally became independent in 1836. Later on, Texas joined the U.S. union in 1845. 

The six flags or nations over Texas represent Spain, France, Mexico, the Republic of Texas, the United States, and the Confederacy, which have ruled the land in history. In 1519, the coastline of Texas was mapped by a Spanish explorer named Alonzo Alvarez de Pineda. The state also has a slogan of “the friendly state.” 

The biggest export of Texas is its cultural food. It’s more generally called Tex-Mex cuisine, a blend of Spanish food with the state’s local food traditions. It’s the country’s top wool producer and is still widely known for its Old West cowboys. The state’s capital, Austin, is known for its live music, which means that Austin has more live concerts than other United States cities. 

Pros of Retiring in Texas

If you live in Texas, there are many reasons why you should look forward to retiring there—not only because a large number of retirees from the country move there for this reason but also because there are loads of benefits. You can find the best places to retire in this state, which are also affordable at the same time. 

People who live in Texas have a low cost of living. They tend to spend less on their daily necessities than any other state. They are provided with the highest quality health care. The state has more than 500 hospitals, which have a good ranking. 

According to studies, people living in the state of Texas have a good chance of enjoying their life to the fullest. It’s home to some of the happiest people. Texas has a diverse culture, as it is home to people from every state, ethnicity, and culture. 

People who live in Texas don’t have to pay any state income tax. It’s a state full of endless entertainment options and friendly culture to welcome people from different countries and cities. 

Cons of Retiring in Texas

While there are many advantages of retiring in Texas, there are also some cons. When you move into the beautiful state of Texas, and you are planning to retire here, there are some things that you should keep in your mind. The disadvantages are majorly financial related, and their medical coverage doesn’t begin before the age of 66. 

If you leave employer-sponsored health coverage, then you will be facing some considerable loss. While talking about loss, if one starts withdrawing their funds before their full retirement age, they will have 30% fewer benefits. You can also face penalties for accessing your funds before your retirement age. 

Because of the major population, they have higher traffic, urban sprawl, and crime rate. Moreover, the weather is relatively hot. One thing to keep in mind is that when you live in Texas, hurricanes will significantly affect your life. 

Who Should Retire in Texas?

When it comes to retiring in Texas, you have various choices to pick from. You can choose whether you want to retire early or not, which leaves you with two more retiring options on time or even late. However, there are some pros and cons of each choice you make. 

So, you have to choose wisely, keeping a lot of things in your consideration. You can also make your decision by answering a few questions: 

  • Are you genuinely willing to retire? 
  • Will you be able to stay at home? 
  • For how long do you think your funds will last? 
  • What will happen after? 
  • Are you willing to save or spend your retirement funds? 
  • How is your financial situation, and will you be able to manage it? 

If you know the answer to these questions, you are pretty much good to go. Maybe early retirement will work for you, or perhaps not. If you are at the age of 68 or more, you should probably get a retirement, as there will be more benefits for you. 

Florida: A Brief Overview

Texas or Florida? Which Should You Retire In?

Florida is a state of the United States, ranked as the third-most populated state with a population of over 21 million. The state also has a nickname called Sunshine State. Tallahassee is the capital of Florida, while Jacksonville is the largest city. Florida is known for having the fourth-largest economy out of any of the U.S. states. 

Florida was the first state that came in European contact by a Spanish explorer Juan Ponce de Leon, in the year 1513, and he named the state Pascua Florida. Florida officially had its statehood by becoming the 27th state of the United States on 3rd March 1845. 

Florida’s primary leading industry is tourism, and every year millions of people visit the state. 

It is famous for its oranges and grapefruits, and almost 80% of America’s citrus is grown in this state only. Amusement parks, winter vegetables, the Kennedy Space Center, and a large number of retirees are some of the many reasons for Florida’s popularity. They also have a vast number of golf courses as compared to any other state of America. 

Because of being a low-lying plain or the flattest state, Florida has many streams and lakes, covering most of the state’s area. It’s well known for the hot and sunny weather. The state has the third-largest lake in the United States named Lake Okeechobee. Daily, thousands of people move to Florida, and the number is still increasing.  

Pros of Retiring in Florida

Living in Florida is like a dream come true. You have unlimited access to the beach, warm weather, all-year golf sessions, and fresh vegetables and fruits. People who live in Florida get to have many benefits—either it can be a higher quality of life or lower taxes. However, it also gets many people’s attention because of its retirement perks and is widely known for its retirement communities. 

One of the benefits of retiring in Florida is a low cost of living. People who live in Florida have to spend less on their necessities and even luxuries than other states of the USA. The state offers a large number of entertainment sources for adults, including more than 1250 golf courses. 

You can also experience a mix of urban and rural living, making it a great place to live. It offers its people the best protection, no matter what size or how much your net worth is. They don’t have a personal income tax system in Florida, but they do charge funds from other sources. 

If you are earning reasonably well, you can pay an overall tax burden, as it is more beneficial. You can also pay in advance for your healthcare costs.

Cons of Retiring in Florida

With all of the advantages of retiring in Florida, there are some disadvantages, too. Firstly, it’s pretty hard to find the perfect retirement community which fulfills all your needs. 

As they don’t have a state income tax, you may have to pay a 6 or 7.5% sales tax. Property taxes can also be nearly impossible if you are on a tight budget. Their medical care facility is average or below average when it comes to quality. 

Gradually with time, one’s living cost in Florida will rise. Due to the high population, traffic can also be a significant issue. Most importantly, you are most likely to have an encounter with many wild animals. Florida also goes through many powerful storms and hurricanes every season. So, it will be a must to buy yourself flood insurance. 

Who Should Retire in Florida?

If you are above the age of 62, you probably think of making some critical decisions. First and foremost will be if you should file for Social Security benefits. It’s beneficial to wait until the maximum retiring age. 

Because if you wait until then, your monthly benefit check will be around 75% higher. As a large number of people move to Florida to retire, almost the same or maybe even higher number of people also move out. Still, what you should consider are the pros and cons, and what fits you better according to your need.

Final Thoughts

Texas and Florida have warm weather and a retirement-friendly environment. However, the crowds they appeal to vary. If you want to stretch the dollar and retire late, you should retire in Texas. In contrast, if you’re going to have an active retirement with golf, urban socializing, and similar aspects, Florida suits you as a retirement destination.



Hey there, my name is Ruth, I'm in my late fifties. My life was turned upside down a few years ago as I experienced a burn-out. But I saw it as a sign that something had to change in my life. I'm happy I used this tough experience as a stepping stone. I now feel happier than ever and hope to inspire you to do the same, no matter how old you are.

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