From Kiplinger · · 3m
Retirement Choice: Naples or Palm Springs?
Retire in Naples, Florida, or Palm Springs, California? Tax breaks, weather, and lifestyle differences decide.
In brief
Retire in Naples, Florida, or Palm Springs, California? Tax breaks, weather, and lifestyle differences decide. Retirees choose between Naples' tax-friendly lifestyle and hurricane risks versus Palm Springs' active community and higher taxes. Originally reported by Kiplinger.
The Retirement Game
Would you rather retire in Naples, Florida, or Palm Springs, California? Both are sun-soaked, golf-mad havens for retirees.
Naples: Golf Capital
Naples is the self-titled 'Golf Capital of the World' with the second-most golf holes per capita in the U.S.
Naples Cost of Living
Naples has a cost of living 29% above the national average, but everyday expenses like groceries and utilities run close to the national norm.
Naples Tax Breaks
Florida has no state income tax, no tax on Social Security, pensions, or 401(k)/IRA withdrawals, and no estate or inheritance tax.
Naples Healthcare
Naples Comprehensive Health is a Mayo Clinic Care Network member and the region's only Joint Commission-accredited Comprehensive Stroke Center.
Naples Weather Risks
Naples logged 53 days with a heat index of 105°F or higher in 2023 and faces hurricane season from June through November.
Naples Insurance Costs
Home insurance averages $9,660 a year for $300,000 in coverage, with flood insurance a separate policy.
Palm Springs: Desert Retreat
Palm Springs is a desert city with 300 days of sunshine a year and less than five inches of rain annually.
Palm Springs Cost of Living
Palm Springs has a cost of living 29% above the national average, with median home prices around $590,000 and rents $1,480 to $1,970 a month.
Palm Springs Taxes
California taxes pensions and 401(k)/IRA withdrawals at rates from 1% up to 13.3%, with most retirees landing near a 9.3% marginal rate.
Palm Springs Healthcare
Desert Regional Medical Center is a Level II trauma center, and Eisenhower Health ranks as the #1 hospital in the Riverside County-San Bernardino metro.
Palm Springs Climate Risks
Palm Springs faces earthquake risks from the San Andreas Fault and extreme drought, wildfire, and flash-flood risks.
Palm Springs Lifestyle
Palm Springs has a median age of 57, is active and sociable, and has one of the highest concentrations of same-sex couples in the U.S.
The Choice
Naples offers tax breaks and a traditional lifestyle but faces hurricanes and high insurance costs. Palm Springs provides active living and design but demands higher taxes.
What Matters Most
Retirees choose between Naples' tax-friendly lifestyle and hurricane risks versus Palm Springs' active community and higher taxes based on their priorities.
The big picture
Retirees choose between Naples' tax-friendly lifestyle and hurricane risks versus Palm Springs' active community and higher taxes.
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