The new year brings a natural moment to step back and review where your retirement plan stands. Year-end account statements are in, tax season is approaching, and Medicare Open Enrollment just wrapped. For Florida homeowners, the March 1 homestead exemption deadline is right around the corner.
This is also a good time to acknowledge that retirement planning does not end once you stop working. Social Security cost-of-living adjustments are updated annually, Medicare premium structures change each year, and healthcare costs have continued to rise.
(Sources: SSA.gov; Medicare.gov; Employee Benefit Research Institute) Getting ahead of these shifts at the start of the year can help you avoid costly surprises later. Here are the key areas worth reviewing in 2026.
Making the Most of Florida’s Tax Environment
Florida’s no state income tax applies to Social Security benefits, pension income, IRA and 401(k) distributions, and investment income at the state level. But maximizing this advantage takes some action on your part.
If you recently purchased a home or moved within Florida, confirm your homestead exemption has been filed with your county property appraiser, typically by March 1. If you previously had a homesteaded property in Florida, ask your county about portability, which allows you to transfer up to $500,000 of your accumulated Save Our Homes benefit to a new primary residence. (Source: Florida Department of Revenue) At age 65, additional senior exemptions may also be available, as may special provisions for veterans and certain disabled individuals. A quick visit to your county property appraiser’s website can confirm what applies to your situation.
Social Security and Medicare Updates
Social Security benefits are adjusted annually based on cost-of-living calculations, and Medicare Part B and Part D premiums are updated each year. (Sources: SSA.gov; Medicare.gov) Higher-income retirees may be subject to Income-Related Monthly Adjustment Amount (IRMAA) surcharges on their Medicare premiums, which are calculated based on Modified Adjusted Gross Income from two years prior. For 2026, IRMAA surcharges begin at $106,000 for individuals and $212,000 for married couples filing jointly, though these thresholds are subject to annual adjustment. (Source: Medicare.gov)
Large one-time income events such as IRA withdrawals, real estate sales, or pension lump sums can push income above IRMAA thresholds unexpectedly. Coordinating these events with a financial professional may help reduce or avoid these surcharges.
If you have not yet claimed Social Security, factors such as health, family longevity, spousal benefits, and other income sources all play a role in the timing decision. A qualified financial advisor can help you model different scenarios based on your specific situation.
Florida Insurance: A Reality Check
Florida’s insurance market has seen significant changes in recent years, with premiums rising and some carriers reducing their presence in the state. Reviewing your homeowners policy annually is worthwhile: confirm that coverage limits reflect current rebuilding costs, understand your wind and hurricane deductibles, and check your carrier’s financial stability rating.
Flood insurance is also worth evaluating, even outside formally designated high-risk flood zones. Florida’s geography and rainfall patterns mean flooding can occur in areas not classified as high-risk. The National Flood Insurance Program offers policies for lower-risk properties. (Source: FEMA/NFIP)
Withdrawal Sequencing and Tax Strategy
The order in which you draw from taxable, tax-deferred, and tax-free accounts can affect both your lifetime tax bill and your Medicare premiums. Required Minimum Distributions from traditional IRAs and 401(k)s are currently required beginning at age 73 per IRS rules, and those distributions are taxed as ordinary income. (Source: IRS.gov) Large unplanned RMDs can push income into higher tax brackets or trigger IRMAA surcharges.
Florida’s no state income tax environment can make it an attractive setting for Roth conversions, where you pay federal tax now in exchange for tax-free withdrawals later. Conversions during lower-income years, such as after retiring but before beginning Social Security or RMDs, are worth exploring with a qualified tax professional.
Estate Planning and Beneficiary Reviews
Florida has specific legal requirements for wills, trusts, powers of attorney, and healthcare directives. If you relocated to Florida from another state, a Florida-licensed estate planning attorney should confirm that your existing documents comply with state law.
Beneficiary designations on IRAs, 401(k)s, life insurance policies, and accounts with Transfer on Death or Payable on Death designations pass assets outside of a will and override its terms. Keeping these designations current is essential. Florida also offers meaningful protections, including homestead creditor protection and no state estate tax. (Source: Florida Constitution, Art. X, Sec. 4)
Investment Strategy in Retirement
Your portfolio should evolve as your time horizon and income needs change. A strategy appropriate at 60 may not be the right fit at 70 or 75. Florida retirees face particular inflationary pressures in areas like property insurance, homeowners association fees, and healthcare costs, making it important to balance income generation with long-term growth potential.
If a market decline of 20 to 30 percent would require changes to your lifestyle or spending, your portfolio may carry more risk than you are comfortable with. That is a worthwhile conversation to have with a financial advisor each year.
Planning for Healthcare and Long-Term Care
Healthcare costs are among the most significant and least predictable expenses in retirement. Even with Medicare coverage and a supplemental plan, out-of-pocket costs for dental, vision, hearing, prescriptions, and long-term care services can be substantial. The best time to evaluate long-term care insurance and planning options is typically while you are still in good health. Once health conditions develop, options may become more limited or costly.
Important Disclosures: This article is for educational and informational purposes only and does not constitute financial, tax, legal, or investment advice. Tax laws, Social Security rules, Medicare regulations, and insurance requirements are subject to change. Please consult qualified financial, tax, and legal professionals before making any financial decisions. All investing involves risk, including the potential loss of principal. Past performance does not guarantee future results. Asset allocation and diversification do not ensure a profit or protect against loss. Global Wealth Management does not provide tax or legal advice.
To help you work through each of these areas at your own pace, download our free 2026 Florida Retirement Planning Checklist guide.