Can an Ordinary Retired Couple Afford to Live in Boca Raton?

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A couple in their sixties looking to swap snow shovels for flip-flops and wondering whether retiring to Boca Raton is still realistic for people who are not millionaires. The answer is yes, but the numbers are less forgiving than they were a generation ago. Success depends on evaluating the finances the way a planner would, line by line, using actual South Florida costs rather than national averages.

Their Situation

This Wisconsin couple brings a stronger balance sheet than many retirees. They are 68 and 66 years old, own a home worth about $325,000 with $95,000 remaining on the mortgage, have $425,000 in retirement savings, and receive $48,000 a year in combined Social Security benefits. That Social Security income is well above what the typical retired couple receives, giving them more flexibility than many households considering a move. Even so, South Florida is expensive enough that every piece of the puzzle matters.

What the Wisconsin Sale Actually Leaves Them

Selling at $325,000, paying realtor and closing costs of roughly 6%, and retiring the $95,000 mortgage leaves them with about $210,000 in cash. That is the down payment. It is not enough to buy a Boca Raton condo outright in 2026. Median condo list prices in Boca Raton sit around $304,950 to $389,000, depending on which submarket, and inventory at the bottom of that range is typically older, west-of-I-95, with HOA risk attached. A clean, livable, non-55+ condo in a reasonably maintained building runs $325,000 to $400,000.

If they buy at $325,000 with $210,000 down, they carry a roughly $115,000 mortgage into retirement. At today’s rates that is about $725 a month in principal and interest, or $8,700 a year. Carrying a mortgage past 68 is manageable, though it turns a fixed cost into a portfolio drain for the next two to three decades.

The Boca Reality Check

The condo purchase price is only the beginning of the South Florida retirement equation. Three ongoing expenses often determine whether the plan succeeds or fails.

The first is HOA fees. In Boca Raton, monthly association dues commonly range from $400 to $700 in older, non-luxury communities, while upscale downtown buildings can exceed $2,000 per month. For budgeting purposes, a middle-of-the-road estimate of about $550 per month, or $6,600 annually, is reasonable.

The second is special assessments. Following the 2021 Surfside condominium collapse, Florida enacted stricter inspection and reserve-funding requirements for many condo buildings. As a result, owners in some older coastal and intracoastal properties have faced one-time assessments ranging from several thousand dollars to well into the six figures. For retirees with a $425,000 portfolio, even a $40,000 assessment could significantly alter the retirement plan. The best protection is careful due diligence and, in many cases, paying more upfront for a newer building or one with fully funded reserves.

The third major expense is insurance. Coastal Palm Beach County homeowners insurance premiums often run between $5,300 and $7,500 annually. Condo owners generally pay less because the building’s master policy is covered through HOA dues, but they still need an HO-6 policy for the interior of the unit and may want separate flood coverage. Combined costs often fall in the $2,500 to $4,000 range per year. Property taxes are comparatively manageable. A $325,000 condo receiving Florida’s $50,000 homestead exemption would typically generate a tax bill of roughly $3,000 annually, while the state’s Save Our Homes provision limits future assessment increases to 3% per year.

The Working Budget

Adding it up in current dollars: mortgage $8,700, HOA $6,600, insurance $3,500, property tax $3,000, Medicare Part B for two at $202.90 each per month plus Medigap, Part D, and out-of-pocket bringing total healthcare to roughly $11,000, groceries and dining $9,500, utilities $3,600, transportation $5,500, and miscellaneous and reserves of $6,000 covering travel, gifts, replacement vehicles, and small assessments. The total lands near $57,400 a year.

Subtract $48,000 in Social Security and the portfolio must cover roughly $9,400 a year. On $425,000 that is a 2.2% withdrawal rate, well inside what is sustainable across a 25- to 30-year horizon. Florida helps here, with no state income tax, where Wisconsin would have taxed their IRA withdrawals at 3.5% even though it exempts Social Security. The plan works on paper.

Does the Budget Hold Up?

It works thinly. Inflation is the quiet problem. Core PCE is running near the 90th percentile of its recent range, HOA dues in South Florida have been climbing faster than headline CPI, and insurance is the wild card no model handles well. A single $30,000 special assessment lifts the effective withdrawal rate to a level that erodes the portfolio over thirty years rather than preserving it.

The realistic path for this couple is a condo at or below $325,000 in a building constructed after 2000 with fully funded reserves, a 15-year mortgage rather than a 30, and a portfolio they treat as the assessment fund first and a lifestyle fund second. Boca Raton remains reachable for ordinary middle-class retirees who are disciplined about which building they buy into.

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