The Retirees Who Skipped Florida for a Great Lakes Town Say the Winters Were the Only Thing Anyone Warned Them About
Most people who warn retirees away from Great Lakes towns mention one thing: the winters. But the gap between a Michigan retirement and a Florida one turns out to hinge on a cost most retirees never see coming.
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Retiring to a lake town in Michigan or Wisconsin often raises questions about snow and winter conditions compared with a move to Florida. Winter is one factor in that comparison, but the rest of the picture gets mentioned less often: insurance, taxes, housing, and summers. This piece runs the numbers for a couple at full retirement age.
The move happens more often than the snow jokes suggest. Migration data from the IRS for 2022-2023 show 8,263 tax returns moving from Florida to Michigan, while 10,659 went the other way. Florida was Michigan’s top source of incoming movers and its top destination for people leaving. The data doesn’t identify retirees, but traffic runs in both directions.
What a Great Lakes Retirement Costs Next to Florida
The Bureau of Economic Analysis puts Michigan’s price level at 96.217, Wisconsin’s at 94.095, and Ohio’s at 92.774, where 100 is the national average. Florida stands at 103.414. Average household spending nationally was $78,535 in 2024. Adjusted to each state’s price level, a Michigan household spends about $75,600 a year, and a Florida household about $81,200. That’s a rough working budget, since the BLS figure covers all households and not just retirees.
Social Security accounts for a big share. This example uses SSA’s January 2026 average of $3,208 a month for an aged couple both receiving benefits, or $38,496 per year. The Michigan gap runs near $37,100 and the Florida gap near $42,700. At a 4% withdrawal rate, a rate often cited for a 30-year horizon starting in the mid-60s, the Michigan couple needs about $927,000 invested.
The Florida couple needs about $1.07 million. Let’s assume their own retirement benefits total $3,208 monthly at a full retirement age of 67. Delaying both benefits to 70 raises that amount by 24%, before COLAs, reducing the Michigan portfolio target to roughly $696,000.
Inflation also affects retirees in these states. The BLS research index for Americans 62 and older rose 3.6% year over year, matching the 3.6% COLA set for 2027.
Tax Math Still Favors Florida, Though by Less Than Expected
Florida has no state income tax and ranks 1st on individual income tax in the Tax Foundation’s 2025 index. Michigan ranks 14th, Ohio 25th, and Wisconsin 35th. Michigan charges a flat 4.25% and doesn’t tax Social Security. For the 2026 tax year, all Michigan taxpayers can choose the maximum retirement deduction, according to the House Fiscal Agency. For 2026, the maximum deduction for qualifying retirement income is $67,610 for single filers and $135,220 for married couples filing jointly. A couple pulling about $37,000 from IRAs would likely owe Michigan nothing.
Wisconsin exempts Social Security and lets eligible filers 67 and older exclude up to $24,000 of retirement income, or $48,000 on a joint return if both spouses qualify. Ohio exempts Social Security. A $37,000 taxable retirement withdrawal would generate around $633 in state income tax before personal exemptions and credits. Florida’s edge grows for bigger spenders whose withdrawals run past those caps. On property taxes, the same index ranks Ohio 6th, Wisconsin 8th, Florida 21st and Michigan 28th, which grades structure more than bill size.
Winters Cost Less Money Than People Assume and More of Everything Else
Heating cost estimates vary by fuel this year. The EIA expects homes heating mainly with natural gas to spend 9% less this winter, with propane down 3% and heating oil up about 21%. Other winter costs include a plowing contract and icy driving conditions. Summers are milder, with fresh water nearby.
Splitting time brings its own problem. Florida treats permanent residency as a factual call by the county property appraiser, considering things like a recorded declaration of domicile, under Fla. Stat. § 196.015(1). Owners with homes in two states can end up with both questioning where they actually live.
On climate, a University of Michigan study modeling Grand Rapids found projected climate migration “did not substantially change overall population growth”, though co-author Derek Van Berkel noted the city is “kind of a flood zone.”
Insurance Gap Worth About $150,000 in Portfolio Terms
Florida homeowners pay an average of $8,471 a year for insurance, per Insurance.com. NerdWallet puts Michigan at $2,415. The methods differ, but the gap is roughly $6,000 a year. At 4%, that requires about $151,000 in extra savings.
Under these assumptions, the Michigan portfolio target is about $930,000, or roughly $ 700,000 at 70, if the couple delays their own retirement benefits from 67. The lower figure excludes the cost of funding the three-year wait, and qualifying withdrawals would fall below Michigan’s retirement deduction cap. Another relevant comparison is the full annual cost of owning a home in each place, including insurance, property tax, and heating.
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David Beren has been a Flywheel Publishing contributor since 2022. Writing for 24/7 Wall St. since 2023, David loves to write about topics of all shapes and sizes. As a technology expert, David focuses heavily on consumer electronics brands, automobiles, and general technology. He has previously written for LifeWire, formerly About.com. As a part-time freelance writer, David’s “day job” has been working on and leading social media for multiple Fortune 100 brands. David loves the flexibility of this field and its ability to reach customers exactly where they like to spend their time. Additionally, David previously published his own blog, TmoNews.com, which reached 3 million readers in its first year. In addition to freelance and social media work, David loves to spend time with his family and children and relive the glory days of video game consoles by playing any retro game console he can get his hands on.
