How Much Does Retiring in Florida Cost in 2022?

What Retirement Really Costs

There are about as many ways to retire as there are people trying to figure out how much they'll need to make it happen. You might plan to work part time or volunteer. Maybe you want to sleep in every day, or eat an extravagant breakfast each morning. You could move into a retirement community, or move in with family. You may not know exactly what your retirement will look like yet, but one thing's for sure: it helps to start with a baseline.

Let's talk about what it really costs to retire in Florida in 2022. From savings to monthly income and even 55+ community prices, we've got you covered.

How Much Money Do You Need to Retire Comfortably?

Most Americans believe they need to save about $1.7 million for retirement: According to Schwab Retirement Services, that number isn't too far off. But how has that changed over time? And what does that look like for couples?

Fidelity Investments recommends saving 15% of your gross income starting in your 20s. If you earn the average U.S. salary of $69,392 in 2022, that means you should be saving about $10,409 per year. By the time you're 65, that could add up to roughly $2.2 million.

For couples, just combine your annual gross salaries and save 15% of that amount each year. In theory, this could lead to a nest egg of around $4.5 million in retirement savings—including interest, of course.

What's a Good Monthly Income in Retirement?

There's no magic number for monthly retirement income. It all depends on your lifestyle. But if you're planning to travel often or move into a more expensive 55+ community, you'll want a higher budget.

According to Good Life Home Loans, the average monthly retirement income in retirement is about $6,100 (or $73,000 annually). This number may go down over time as retirees draw from their savings, but if you're aiming for a cushy lifestyle, retirement calculators suggest a monthly income of $8,300 to $12,500—that's around $100K to $150K per year.

What's the Average 401(k) Balance at 65?

In 2021, the U.S. Bureau of Labor Statistics reported that 68% of employees had access to a 401(k), and 51% participated. These accounts are still the most common way people save for retirement.

According to Vanguard, one of the biggest 4001(k) plan administrators, here's how savings typically look:

• Average 401(k) balance for someone 55+: $232,279
• Average for someone 65+: $255,151
• Median balance for 65+: $82,297

The big difference between average and median comes from a few ultra-high earners skewing the numbers, so it's a good idea to focus more on the median for realistic planning.

What's the 80% Rule for Retirement?

The 80% rule is a popular retirement planning guideline. It says you should aim to have 80% of your pre-retirement income available each year after you retire.

Why 80%? It assumes you'll no longer have payroll taxes, mortgage payments, or daily work expenses like commuting and professional clothing. It might not be a perfect fit if you plan to travel extensively or still have big-ticket expenses, but it's a helpful starting point for many.

Top 55+ Retirement Communities in Florida

When planning for retirement in Florida, housing matters. What kind of lifestyle do you want? How much can you afford? Here are three of the best Florida 55+ communities that are both budget-friendly and packed with perks:

Pennbrooke Fairways

Looking for an affordable retirement without giving up the fun? Pennbrooke Fairways checks the boxes. It's one of the most budget-friendly golf communities in Florida, with home prices starting around $150,000. Two clubhouses, a golf course, and even and on-site spa mean you're not skimping on lifestyle.

Royal Highlands

Love the outdoors? Royal Highlands gives you access to four scenic lakes for boating, fishing, and swimming. Homes start in the $200,000s, with average resale prices around $325,000. It's peaceful, well-kept, and full of natural beauty.

On Top of the World

One of the most well-known 55+ communities in Florida, On Top of the World, is located in Ocala. This central spot is safe from hurricanes but close to Orlando's theme parks. Homes start around $165,000. Add in the social clubs, golf, and walkable town square, and you'll see why this community is such a fan favorite.

Planning for a Comfortable Florida Retirement

Your dream retirement doesn't have to come with a million-dollar pice tag. But it does take planning. Whether you're banking on a hefty 401(k), hoping to follow the 80% rule, or just curious about what you can afford, Florida offers options for every budget.

And if a 55+ community is part of your plan? You're in luck! From ultra-affordable Pennbrooke Fairways to the active lifestyle at On Top of the World, there's no shortage of places where you can live well without overspending.

Take your time, do the math, and when you're ready, we're here to help make it happen.