For decades, Florida's sun-drenched shores from Punta Gorda to Daytona Beach represented the quintessential American retirement dream. However, that vision is rapidly fading for many seniors as escalating property prices and a steep cost of living transform the Sunshine State into an increasingly exclusive destination.
The Florida Retirement Exodus
Recent analysis by The Wall Street Journal indicates that retirees earning $75,000 or less are finding Florida particularly unaffordable. This financial pressure has triggered a significant migration pattern, with long-time Florida residents packing their belongings and seeking more economical alternatives elsewhere in the country.
According to a 2024 report from Florida's chamber of commerce, three states have emerged as particularly popular destinations for these departing retirees. These locations combine competitive living costs, favourable tax environments for older demographics, and reasonable Medicare performance scores.
Methodology Behind the Rankings
The Independent's assessment of alternative retirement states utilised data from three respected sources: cost-of-living statistics from the Council for Community & Economic Research via the Missouri Economic Research and Information Center; Medicare performance scores from non-partisan healthcare research group The Commonwealth Fund; and tax policy analysis from the nonpartisan Tax Foundation.
Texas: The Warm Climate Alternative
For retirees seeking Florida's warmth without its price tag, Texas presents a compelling alternative. The Lone Star State ranks 11th nationally for cost of living, outperforming Florida specifically in grocery, housing, and transportation expenses.
Like Florida, Texas belongs to the exclusive group of nine states that levy no personal income tax. This creates substantial financial advantages for retirees, particularly those drawing from retirement accounts. With average 401(k) balances for people in their sixties around $580,000 according to financial firm Empower, the tax savings can be considerable. For comparison, Georgia retirees could pay approximately $31,000 in state taxes on similar withdrawals due to a 5.39 percent income tax rate.
Texas does face challenges in healthcare provision, with The Commonwealth Fund ranking its Medicare system among the nation's worst. However, for beach-loving retirees concerned about missing Florida's coastline, Texas offers compensation with the eighth longest shoreline in the United States, featuring over 3,300 miles of coastal access according to the National Oceanic and Atmospheric Administration.
North Carolina: The Balanced Performer
North Carolina distinguishes itself as the only state among the three alternatives that ranks within the top 30 across all assessment categories. It achieves 26th place for cost of living (still lower than Florida), 14th for Medicare performance (the best ranking among the trio), and 22nd for its individual income tax structure.
The Tarheel State maintains a relatively low individual income tax rate of 4.25 percent, alongside competitive property and sales tax systems as noted by the Tax Foundation. This balanced appeal has made North Carolina the primary destination for Florida migrants between 2019 and 2024.
Beyond financial considerations, North Carolina promotes active retirement lifestyles. A 2025 report from insurance company Choice Mutual reveals the state ranks among the top twenty for senior physical activity, with older residents averaging 98.1 active minutes daily. The state also boasts the nation's seventh longest shoreline, providing ample coastal recreation.
Tennessee: The Tax-Friendly Destination
Tennessee earns top marks from the Tax Foundation for its complete absence of state income tax, mirroring Texas's advantage for retirees with 401(k)s and traditional IRAs. The Volunteer State further impresses with an 8th place ranking for overall cost of living, receiving excellent scores for grocery prices, utilities, and transportation costs from the Council for Community & Economic Research.
While Tennessee's Medicare performance ranks 39th nationally, this still represents an improvement over Florida's standing. The state also supports active aging, with seniors averaging 97.6 minutes of daily activity according to Choice Mutual, placing Tennessee among the top twenty states for senior physical engagement.
As Florida's retirement appeal diminishes under financial pressures, these three states demonstrate that affordable alternatives exist for seniors seeking value without completely sacrificing lifestyle amenities. Each offers distinct combinations of economic benefits, healthcare access, and recreational opportunities that are drawing former Florida residents in increasing numbers.
