When choosing a location to spend part of your year, it’s important to consider more than just climate . The real question isn’t just, “Where is it warm?” It’s “Where can I comfortably spend a quarter (or more) of the year without creating tax, healthcare, and housing problems?”

Many affluent retirees spend three or more months of the year in states like Florida, Arizona, or the Carolinas and increasingly, retirees are considering international destinations. When deciding where to spend part of your year, make sure to consider all key factors.

Quick Summary: Affluent retirees often cluster in Florida’s luxury and coastal communities, but Arizona, the Carolinas, Tennessee, and even international destinations are also popular spots. Taxes, healthcare access, housing costs, and residency rules should all shape your decision about where to spend your extended stays. A financial planner can help you make this decision.

Why 3+ Month Stays Have Become So Appealing in Retirement

Extended stays aren’t exactly a new concept for retirees. After all, many seniors  snowbird, spending colder months  down south in destinations like Florida, Arizona, and Texas. But these seasonal stays aren’t just for snowbirding, and they’re becoming increasingly popular among the 50-plus crowd as travel enthusiasm – including international travel – rises.

Because they no longer have a job to go to, retirees can relocate for weeks or months at a time. Not only can these trips serve as extended vacations, but they also allow people to test-drive new locales before making a permanent move. 

The Main Places Wealthy Retirees Are Spending Extended Time

There are a few destinations that retirees tend to flock to for extended trips, often because of their warm weather, tax-friendliness, and existing retiree communities.

Florida for warm weather, social communities, and lifestyle density

Florida continues to be a popular destination for retirees, whether they’re just snowbirding or planning a permanent move. Florida has the key benefit of no income taxes, which can be a major financial draw for people in their golden years. 

Cities like Naples, Sarasota, Palm Beach, Miami, and the Treasure Coast draw retirees who want already-established retirement communities located in walkable cities with easy access to golf courses, the airport, and the coast.  

Arizona and desert markets for dry winters and active living

Arizona is another example of a state that has long been a snowbird destination. Its consistently dry climate and outdoor activities appeal to plenty of retirees. Cities like Scottsdale, Tucson, Sedona, and communities around Phoenix serve different preferences, whether you’re looking for luxury resorts and golf or beautiful scenery.

Unlike Florida, Arizona does have an income tax, but it’s one of the lowest in the country – lower than many northern states that retirees might be moving from. Its cost of living is also lower than some of Florida’s more popular retirement destinations.

The Carolinas, Tennessee, and “half-back” alternatives

A half-back retiree is someone who relocates to a popular southern retirement spot such as Florida or Arizona, but then moves halfway back, often landing in the Carolinas or Tennessee.

There are plenty of reasons someone might decide to relocate from their original retirement plans, including escaping heat and humidity, desiring an area with less congestion, or seeking a slightly lower cost of living. 

Retire-abroad stays for value, novelty, and slower living

As we mentioned, international travel is becoming increasingly popular among retirees, especially among the affluent. Many plan two- to four-month stays in countries with a high quality of life, lower costs, and well-established expat communities.

There are plenty of destinations around the country for retirees, but Mexico and Southern Europe are particularly popular. Mexico offers the draw of easy access and warm weather, while Europe has an infrastructure and lifestyle that appeal to many older individuals.

A key consideration with international travel during retirement is healthcare. While Medicare provides some coverage outside the United States, is very limited. If you’re planning to spend any extended time outside of the United States, you’ll need a supplemental or international plan of some sort. 

What the Data Says About Where Retirees Are Moving

According to 2023 data from the U.S. Census Bureau compiled and sorted by SmartAsset, Florida is by far the most popular state for retirees to move to, followed by North Carolina, Arizona, South Carolina, Georgia, and Texas. These patterns align with what financial planners often see among their older clients – the desire to move somewhere with warmer winters and a lower tax burden. 

The table below breaks down the top 10 states for retirees to move based on SmartAsset’s data, along with the net number of retirees (those who moved in versus those who moved out):

Renting vs. Owning for a 3+ Month Retirement Stay

One of the most important considerations when planning an extended stay is whether you’ll rent or own. I It makes sense to rent if you’re not planning to move permanently, but if you’ll be making extended stays to the same place every year (or more often), owning could be the right choice.

Why more retirees test-drive a destination before buying

Renting has some obvious benefits, including increased flexibility and liquidity. You’re not tying too much of your money up in a piece of real estate. Additionally, if you’re just test-driving a place and aren’t certain it’s right for you, then renting is almost certainly the right choice.

The hidden costs of owning a seasonal property

Renting is a great option when you’re testing out a new location. However, once you’ve settled on a place and plan to make it a regular part of the year, you might decide it makes more sense to buy, and maybe even rent it out while you’re not there to help cover the costs.

Moving during retirement has plenty of hidden costs you must consider, including insurance, taxes, upkeep, home or condo owners’ association fees, furnishing, and travel to and from. Additionally, if you’re planning to rent the place out, you’ll have to contend with vacancy risk and the possibility of not having that extra help paying the mortgage.

That’s not to say buying isn’t the right choice, but careful consideration and understanding all the expenses tied to a second property is essential. 

The Financial Filters That Matter More Than the Weather

Warm weather may be at the top of your list when deciding where to spend your winter months (or another part of the year). But there are some financial considerations that should be just as (if not more) important. 

State taxes and residency rules

Spending three or more months in a second state raises some real tax and domicile questions. Most states define residency as 183 or more days in a year, while others have different requirements. 

Establishing a domicile in a state like Florida or Tennessee, which have no state income tax, can be a particularly tax-savvy move. But you also have to make sure you’re meeting the requirements. If you don’t tread carefully, you could end up unexpectedly owing income taxes in your last state.

Healthcare access while you are away from home

As we mentioned, healthcare is a key consideration when you’re away from home. If you’re on a Medicare Advantage plan with a regional provider network, you may have trouble finding affordable healthcare in another state. Before planning your trip, confirm your plan covers non-emergency care at your destination, not just emergency treatment.

Traditional Medicare offers more flexibility within the United States, but still doesn’t cover you abroad like it does at home.

If the stay is abroad, what Medicare usually does not cover

Medicare generally doesn’t cover you when you’re abroad unless the emergency happened on U.S. soil and you’re taken to a foreign hospital, you’re traveling through Canada between Alaska and the lower 48 states, or you live in the U.S. and a foreign hospital is closer to your home than a U.S. hospital.

If you’re planning to be out of the country for any extended period of time, it’s important to purchase either a supplemental health insurance plan or a travel health insurance plan. 

Estate and planning documents if you split time between states

Estate planning documents, including wills, trust agreements, healthcare directives, and powers of attorney, are governed by state law. Even if you already have these documents in place, they may not carry over to your other home, especially if your document is at odds with the local law in one state.

Before going on your extended stay, be sure to work with your estate planning attorney to designate your domicile state in your documents and ensure they’ll be enforceable in both places. 

A Simple Framework for Choosing the Right 3+ Month Destination

Choose your priority

Before narrowing down your list of destinations, identify your specific priorities when choosing a place to spend part of your year. Knowing what you’re looking for is an important first step in identifying locations that address your wants and needs. Some considerations are:

• Luxury lifestyle
• Tax efficiency
• Affordability 
• Healthcare access
• Proximity to family
• Ease of travel
• Low-maintenance housing

Score each option using a decision matrix

Once you’ve identified your top priorities, run the different destinations you’re considering through a scoring framework for an easy and consistent comparison. You can rate each location based on a handful of weighted criteria. The location that returns the highest score is likely the best fit based on your desires.

Here’s an example matrix to consider:

Of course, there’s also an element to this decision that’s purely emotional. If you feel yourself pulled to a location that doesn’t necessarily get the top score, it may still be worth considering. The benefit of a three-month stay over a permanent move is that you can test drive more than one location. Maybe you spend your first winter in Florida or Arizona, followed by the next winter in Southern Europe. If you’re not ready to commit to one, you don’t have to.

What to Do Before You Commit to a Seasonal Move

Even if it’s not a permanent move, a three-month extended stay is a serious lifestyle and financial commitment. Before signing a lease or making any purchases, these practical steps can help you prepare:

• Visit in both the off-season and peak season. A location that feels right during part of the year may be the wrong fit during another part.
• Price the stay as a complete budget, not just lodging. Make sure to account for other costs like healthcare, dining out, entertainment, travel, etc.
• Review your domicile and estate documents. Have an attorney familiar with both states’ laws review them and reinforce your domicile.
• Check your insurance network. Make sure your Medicare or other insurance plan will cover you while you’re away, and purchase alternative insurance if necessary.
• Build the move into your complete retirement plan. An advisor can help you coordinate any necessary retirement plan distributions or changes to your financial plan. 

FAQ

What are the most popular snowbird destinations for retirees?

Florida is the most popular snowbird location, followed by South Carolina, Arizona, and even foreign countries like Mexico and France. 

Are affluent retirees renting or buying for 3+ month stays?

It generally makes sense to rent while you’re exploring your options. However, once you’re ready to commit to a place for every winter, buying might be the right choice, as long as you factor in hidden costs like insurance, taxes, and home maintenance. 

Does Medicare cover you if you stay outside the U.S. for several months?

No, Medicare doesn’t cover you outside of the country, except in very rare situations. Instead, you’ll need a supplemental or travel health insurance plan to cover you for any emergencies or routine healthcare abroad. 

What taxes matter when you live in two places during retirement?

In general, you only have to worry about taxes in the state where you’re actually a resident. If you split your time between a high-tax state like New York or New Jersey and a low-tax or no-tax state like Arizona or Florida, it might make sense to establish your domicile in the lower-cost state. However, you’ll need to understand all of the different residency requirements to make sure you meet them. 

The Bottom Line

There’s no universal right answer to where you should spend your extended stays. Florida, Arizona, and the Carolinas are popular options for many retirees, but they aren’t the best for everyone. You have to consider all of the logistical and financial factors (not just the weather-related ones).

At the end of the day, choosing to relocate, even if only for part of the year, is a major financial decision and one you may want to include your financial advisor in. Set up your free consultation with a Wealth Enhancement advisor to see how we can help with your plans!

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

#2026-11977