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Retired couple walking along a street lined with palm trees – Xavierarnau\/Getty Images<\/p>\n
When it comes to retirement planning and savings, people often get it wrong, thinking the only thing that matters is having and hitting their set retirement savings goal. But in reality, spending in retirement is a variable that shifts depending on factors like housing, health conditions, but more importantly, location. Where you live affects things like the cost of housing, how much you spend on healthcare, insurance, and taxes. This is where peoples’ savings calculations conflict with reality: Your $500,000 savings can work in a place that’s affordable, but not an expensive state like Hawaii<\/a>.<\/p>\n Retirees who understand this dynamic lean towards settling in states where they can live comfortably with a modest amount in the bank. Florida is one of those states coming up over and over, and it’s definitely one of the\u00a0best states to retire<\/a> in 2026. Florida comes out on top with pros like no personal income tax, affordable housing, and high-quality healthcare. But Florida is still a large state, and that affordability doesn’t necessarily ring true in all 411 cities, as costs can differ from one municipality to another.<\/p>\n GOBankingRates’<\/a> ranking for the best places to retire with $500,000 in savings helps narrow down the choice, though. Out of 50 locations nationwide, three Florida cities made the cut: Sebastian at No. 9, Cape Canaveral at No. 10, and New Port Richey at No. 28.<\/p>\n Read more: The 12 Best Places For A Retiree With No Savings<\/a><\/p>\n Sebastian Aerial view of the Indian River Lagoon and state park in Sebastian, Florida – Ryan Tishken\/Getty Images<\/p>\n On a budget of $500,000, and using the 4% retirement withdrawal rule, your monthly income will be $1,667 (or $20,000 a year). If you add in Social Security benefits \u2014 estimated at $2,071 for January 2026 \u2014 the total monthly income goes up to $3,700 a month.\u00a0In Sebastian, a small city of just\u00a0over 27,000 residents\u00a0along the Treasure Coast, the\u00a0average monthly living costs of $3,693 match up well with this moderate retirement income \u2014 and the cost of housing is the major draw.<\/p>\n Housing is one of the biggest expenses in retirement, whether it’s the cost of a care facility, the price of rent, or the cost of buying a home. Zillow<\/a> reports that the average home value in Sebastian is $340,520\u00a0\u2014 roughly $30,000 less than the statewide average of $370,112 and below the nationwide 2026 projection of $357,445. The average monthly mortgage here is $2,047;\u00a0meanwhile, according to Zillow Rentals, the average rent price sits at about $1,400 for a one-bedroom apartment, which is $300 less than the statewide average of $1,700.<\/p>\n Cape Canaveral Aerial view of the cruise ship terminal in Cape Canaveral, Florida – Julof90\/Getty Images<\/p>\n Cape Canaveral is a small island city in Brevard County. Located along the Space Coast about 40 miles north of Sebastian, the town is at the heart of America’s space program. But the town’s rich history isn’t the main draw for retirees;\u00a0GOBankingRates’ list places Cape Canaveral just a spot behind Sebastian, and a $500,000 retirement budget works similarly here.<\/p>\n Zillow<\/a>\u00a0shows that the average home value in Cape Canaveral is\u00a0$313,720\u00a0\u2014 that’s about $27,000 less than in Sebastian. It’s also $56,000 less than the statewide average, so homeownership is more of a possibility. For renters working with the same $3,700 monthly income, there’s still room for spending to cover other living expenses after parting with the $1,800 it costs to rent a one-bedroom apartment on average, per Zillow Rentals.<\/p>\n Thankfully, health insurance premiums and tax costs are the same as in the rest of Florida. In terms of the costs of utilities, groceries, and transportation, Cape Canaveral sits just below the Florida averages, too, per AreaVibes<\/a>. Overall, the average monthly cost of living there is slightly over $4,000. <\/p>\n New Port Richey view of the street to Main Street, New Port Richey – Wicki58\/Getty Images<\/p>\n The last Florida city to make it onto GOBankingRates’ list is New Port Richey. The city is located along the Gulf Coast in Pasco County, somewhat close to Tampa Bay, but without big-city prices.\u00a0The home values and rental prices are particularly appealing here. Zillow<\/a> lists the average home value at just\u00a0$283,755, nearly $90,000 less than the state average. These great prices apply to renting, with the average cost of a one-bedroom unit placed at $1,200, per Zillow Rentals. According to GOBankingRates’ list, the total cost of living over a 20-year retirement is\u00a0$419,742, with average monthly costs of just $3,751. This budget-friendliness makes New Port Richey one of the most affordable seaside towns in Florida<\/a>.<\/p>\n With significant savings on housing in New Port Richey, there’s more room to spend on leisure. The city’s downtown is home to\u00a0Sims Park, a focal point for various recreational activities and events.\u00a0Meanwhile,\u00a0Robert K. Rees Memorial Park\u00a0offers access to beaches, fishing, and numerous water sports and is located just 3 miles away from the town’s center. On top of that, New Port Richey is just 38 miles from Tampa Bay, so city amenities and cultural attractions are reasonably close.<\/p>\n Unlock your financial potential. Add Money Digest to your preferred sources<\/a> for smart money insights!<\/p>\n![\"Aerial](\"https:\/\/www.newsbeep.com\/us-fl\/wp-content\/uploads\/2026\/02\/7c97c5f6865c4a3f6ae024f5cab621f4.jpeg\"\/)
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