Retirement Cost in Key West, FL: 2026 Budget Guide
A comfortable retirement in Key West costs approximately $83,460/year — 61% above the national average of $52,000. Here's the full breakdown.
$83,460
Annual retirement cost
$6,955
Per month
$2,086,500
Nest egg needed (25× rule)
Direct Answer
Retiring in Key West, FL costs about $83,460 per year, or $6,955 per month. That is 61% above the national retirement budget benchmark, with an estimated $2,086,500 nest egg using the 4% rule.
Annual budget
$83,460
Range: $54,249-$121,017
Monthly budget
$6,955
Housing, healthcare, food, transport, utilities, and lifestyle
Portfolio target
$2,086,500
25x annual spending, before personalized tax planning
Tax note
Tax-friendly
Florida has no state income tax
Key West is an above-average-cost retirement destination. Florida has no state income tax, which can save retirees thousands annually on pension and 401(k) withdrawals.
Annual Retirement Budget in Key West
Based on BLS Consumer Expenditure Survey (65+ households), adjusted for Key West's cost index (155). Range: $54,249–$121,017.
How Much Do You Need to Retire in Key West?
Standard
$2,086,500
4% Rule (25×)
Most common retirement planning benchmark
Conservative
$2,503,800
3.3% Rule (30×)
Conservative approach for longer retirements
After SS
$62,460
Savings needed/year
After avg Social Security (~$21,000/yr)
How Key West Compares
Key West Annual Cost
$83,460
National Average
$52,000
Difference
+$31,460/yr
61% more expensive
Retirement Planning Tips for Key West
✓Florida has no state income tax — a significant benefit for retirees drawing from 401(k)s, IRAs, or pensions.
✓Housing in Key West accounts for roughly $29,211/year of retirement costs — consider whether renting or owning makes more sense given your timeline.
✓Healthcare costs here run approximately $15,023/year. Compare Medicare Advantage plans by ZIP code — coverage and premiums vary significantly.
✓The estimated nest egg needed to retire in Key West is $2,086,500 using the 4% withdrawal rule.
✓Key West is more expensive than average — if flexibility allows, nearby metros may offer significant savings.
Retirement Decision Checklist
Compare housing at $2,434/month against your rent, mortgage, HOA, and property tax plan.
Budget healthcare at about $1,252/month before Medicare supplement, dental, and long-term care choices.
Stress test the plan with the conservative $2,503,800 portfolio target if you want a lower withdrawal rate.
Use $62,460/year as the rough portfolio-funded gap after average Social Security assumptions.
More for Key West
Frequently Asked Questions
How much does it cost to retire in Key West?
A comfortable retirement in Key West costs approximately $83,460 per year ($6,955/month). This includes $29,211 for housing, $15,023 for healthcare, and $12,519 for transportation. Actual costs range from $54,249 to $121,017 depending on lifestyle.
How much money do I need to retire in Key West?
Using the 4% withdrawal rule, you need approximately $2,086,500 in savings to retire in Key West. For a more conservative 3.3% withdrawal rate (30× rule), the target is $2,503,800. If you expect average Social Security benefits (~$21,000/year), your portfolio needs to cover the remaining $62,460/year.
Is Key West a good place to retire?
Key West has above-average retirement costs at $83,460/year — 61% more than the national average. Higher costs may be justified by amenities, climate, or family proximity. The absence of state income tax is a notable advantage for retirees in Florida.
What is the biggest retirement expense in Key West?
Housing is the largest retirement expense in Key West, accounting for approximately 35% of the budget at $29,211/year ($2,434/month). Healthcare is the second-largest at $15,023/year, followed by transportation at $12,519/year.