Yahoo Finance Retirement in Orlando, Florida: 5 Reasons It Costs You Less Than $50,000 a Year
In the United States, the Orlando area is practically synonymous with retirement communities, but is it an affordable place to spend your golden years? If you are looking for more than just golf courses adjacent to Disney World, but a metropolitan area with a low cost of living to boot, you might want to try some senior living as a full-time Central Florida resident.
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As all things related to Disney deal with the idea of ‘happily ever after” then it goes to follow that if a comfortable retirement is the fairy tale ending then this dream is tethered to financial realities such as real estate, healthcare or even crime rates. Orlando, Florida, famous for its theme parks and warm climate, is potentially an attractive option for you as a retiree. In fact, living in Orlando can be quite affordable, with many retirees managing it for less than $50,000 a year.
Here are a few key takeaways about retiring in Orlando, and what it could cost you.
Total population: 307,738
Population of people ages 65 and up: 33,322
Average home value: $416,796
Average monthly mortgage payments: $2,501
Average monthly costs of expenditures: $1,924
Average monthly costs after Social Security: $2,560
Total estimated annual cost of expenditures: $23,083
Total estimated annual cost of living after Social Security: $30,717
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Why You Can Retire in Orlando for Less Than $50,000 a Year
Many communities in Orlando offer a wealth of ways to live affordably in retirement. Here are five reasons why you can afford to retire in Orlando for less than $50,000 a year.
1. More Affordable Housing Options
One of the biggest expenses in retirement is housing. Orlando offers a variety of affordable housing options, from active adult communities to modest single-family homes and condominiums. In 2024, GOBankingRates estimated that the average monthly mortgage payment comes in around $2,500 and the average home value is over $400,000.
As housing costs are some of the biggest chunks of your retirement income, setting aside money you know you’ll need to cover them now will save you financial headaches in the future.
2. Florida Is Tax Friendly
When it comes down to brass tax, or at least income tax, Florida is a friendlier financial option as it has no state income taxes. Florida is one of the few states that do not levy a state income tax. This can be a significant financial benefit for retirees, especially those who have various sources of retirement income such as Social Security, pensions and investment withdrawals.
The absence of a state income tax is not the only tax break you can potentially get if you retire in Orlando as the property taxes can be competitively low when compared to other big cities throughout the United States. Any tax break is a good tax break, especially when it is tacked onto one of your biggest costs such as home price.
3. Affordable Healthcare Costs
Access to quality healthcare is crucial for retirees, and Orlando provides this at a reasonable cost for many seniors. The city has numerous healthcare facilities, including top-rated hospitals and specialized care centers. Medicare is widely accepted, and there are various supplemental insurance plans available at competitive prices.
The general abundance of senior care is reflective of the amount of people over the age of 65 who live there which is close to 11% of the total population. Statistically, over 33,000 of Orlando’s residents are of retirement age, so if you move there when you finally get to stop working, you’ll be in good company.
4. Competitive Cost of Living
When it comes to what you can expect to pay per month or year, it helps to take a look at what the average Orlando resident racks up in expenses. GOBankingRates found that the average monthly cost of expenditures was around $1,900, where the total estimated annual cost of living, after Social Security, was approximately $30,717.
Orlando is a hub of entertainment, dining options and recreational activities, many of which are surprisingly affordable. Retirees can enjoy discounted rates at theme parks, museums and theaters. There are also numerous free or discounted outdoor activities such as hiking, bird watching and enjoying the city’s beautiful parks and lakes. Senior discounts are prevalent, making dining out and enjoying local attractions more budget-friendly when compared to the cost of living in other major cities, or even the national average.
5. Utility Bills That Won’t Break Your Budget
The warm climate of Orlando means that heating costs are minimal. While air conditioning is necessary during the hot months, many homes in Orlando are built with energy efficiency in mind, reducing overall utility costs. Solar energy is also a viable option, with many homeowners taking advantage of Florida’s abundant sunshine to lower their energy bills further.
Final Take To GO
The bottom line is that retiring in Orlando offers a blend of comfort, affordability and sunny living that can be hard to find elsewhere. Orlando not only makes financial sense for your fixed income but also promises a fulfilling and enjoyable retirement lifestyle. With reasonable housing, no state income tax, moderate property taxes, reasonable healthcare costs and more factored into your retired cost of living, it can make budgeting to live on less than $50,000 a year feel less like work.
For the methodology for this study, GOBankingRates analyzed major US cities to find the places where you can afford to retire on less than $50,000 a year. First GOBankingRates found the most populated US Cities as sourced from the US Census American Community Survey. For each city, a number of factors were found including the total population, the population aged 65 and over both sourced from the US Census American Community Survey, the average home value from April 2024 as sourced from Zillow Home Value Index, the average Social Security Benefits as sourced from the Social Security Administration, the cost of living indexes as sourced from Sperlings BestPlaces, and the livability index as sourced from AreaVibes. All cities with a livability of 75 or below were removed from this study as they represent cities with a low quality of life. The average national expenditure costs for residents aged 65 and over were sourced from the Bureau of Labor Statistics Consumer Expenditure Survey for residents aged 65 and over and used to calculate the average expenditure cost for each city. The average home value was used, and by assuming a 10% downpayment and using the national 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage costs can be calculated. The mortgage and expenditures can be used to find the total cost of living for each city. Assuming a retired resident received Social Security Benefits, the total cost of living after Social Security benefits was calculated. The cities with an annual cost of living above $50,000 were removed for this study. The top 100 cities by population with all correlating data were kept with the rest removed and the remaining cities were sorted by their total cost of living. All data was collected on and is up to date as of May 17th, 2024.
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This article originally appeared on GOBankingRates.com: Retirement in Orlando, Florida: 5 Reasons It Costs You Less Than $50,000 a Year
