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Considering a Move to Florida: A Surprise for Arconic Employees

'Arconic employees considering a move to Florida should carefully weigh the state's tax advantages against the rising costs of property taxes, insurance premiums, and condo assessments, as these hidden expenses may significantly impact their financial plans.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement Group.

'Arconic employees looking to relocate to Florida must account for the substantial rise in property taxes, insurance premiums, and condo assessments, as these financial factors could diminish the state's otherwise appealing tax benefits.'– Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article, we will discuss:

The rising costs of property taxes, insurance premiums, and condo assessments in Florida.
The impact of Florida's new condo assessment laws and their financial implications for potential residents.
The hidden financial challenges faced by new Florida residents, particularly regarding HOA dues and rising housing prices.

Florida has become a popular destination for affluent individuals seeking a relaxed lifestyle and beneficial tax laws in recent years. Due to the Sunshine State's exemption from state and inheritance taxes, a large number of wealthy individuals, including reality TV star Bethenny Frankel and business mogul Jeff Bezos, have relocated there. However, many have faced unexpected financial hurdles, particularly with insurance premiums, property taxes, and condo assessments.

Property taxes are a significant and often unforeseen expense for homeowners, especially in South Florida. Henry Silva, a wealth management advisor at Apollon Wealth Management in Miami, states that Florida's property taxes have increased by an astounding 47.5% between 2019 and 2024. Even homeowners who have owned their properties for decades are feeling the impact of these tax hikes. The state legislature is looking into alternative options, although Governor Ron DeSantis has proposed the complete elimination of property taxes.

In addition to rising property taxes, Florida has some of the highest home insurance rates in the nation. According to Bankrate, the average annual premium for home insurance for a $300,000 home is $2,329 nationwide, but in Florida, it's $5,409. Homeowners must also obtain flood insurance, as many homes in the most desirable neighborhoods, particularly in South Florida, are in flood zones. For some, their insurance and property tax bills are even higher than their mortgage payments. This situation is worsened by Florida's highest-in-the-nation auto insurance rates.

The impacts of climate change have made Florida’s insurance market more challenging to navigate. Homeowners now have fewer options as insurance companies have pulled out of the state’s most disaster-prone areas due to natural disasters, particularly hurricanes. Florida has become a focal point of a housing insurance crisis, with insurers leaving and premiums rising as the likelihood of extreme weather events increases.

Condo owners in Florida have also been grappling with rising expenses in recent years. Following the tragic Surfside condo collapse in 2021, which claimed 98 lives, condo associations are now required by law to conduct a structural integrity reserve analysis for buildings older than 30 years. These assessments determine whether buildings are structurally sound, and condo associations must set aside funds for future repairs. Consequently, condo owners have faced unexpected charges for these assessments, often running into tens of thousands of dollars.

Homeowners association (HOA) dues have also risen. In hurricane-prone areas where infrastructure is vital to surviving natural disasters, HOA fees have surged. According to a Redfin analysis from August 2024, Tampa's median monthly HOA cost rose 17.2% year-over-year, while the national average increased by just 5.7%. Miami now has the highest median monthly HOA dues of any of the 43 metro regions Redfin studied, with Orlando and Fort Lauderdale seeing similar increases.

The influx of rising costs has led to a glut of unsold condos, further compounded by historically high housing prices and increasing mortgage interest rates. Many of these condos remain vacant because prospective buyers are deterred by the steep HOA fees and escalating property taxes.

For potential Florida residents, the process has become even more complicated by new condo assessment laws. Many buyers are unaware of these laws until they are in the process of purchasing a property, only to find themselves facing assessments that can sometimes reach six figures. This has caused many people to reconsider their plans or adjust them.

Despite Florida’s appeal as a tax-friendly refuge, the financial realities of living in the state are more complex than many anticipated. Silva emphasizes that moving to Florida should be based on more than just tax benefits. While the state offers pleasant weather and no income or inheritance taxes, rising costs related to real estate and insurance are significant considerations that should not be overlooked.

In conclusion, anyone considering a move to Florida should carefully evaluate all expenses, including property taxes, insurance premiums, condo assessments, and HOA dues. Florida's tax advantages may not be as substantial as expected, and the rising costs of living could offset the benefits. Prospective residents should enter their relocation with a clear understanding of the true costs to circumvent financial surprises.

For Arconic employees thinking of relocating to Florida, it’s important to also understand how the state’s laws may affect your estate planning. While the absence of a state income tax is enticing, many retirees with substantial assets may find that Florida’s higher probate fees, compared to states with income taxes, can result in higher costs. According to a 2023 report by the National Estate Planning Council, the estate distribution process can be significantly affected by these higher fees.

Are you thinking of relocating to Florida? Many new residents are surprised by the financial challenges they face, even though the state doesn’t impose income or estate taxes. Florida boasts some of the highest home and auto insurance rates in the country, property taxes have risen by 47.5% between 2019 and 2024, HOA dues are increasing, and condo owners face unexpected building upkeep costs. As mortgage rates and housing prices continue to climb, prospective residents must take the time to thoroughly examine all the hidden expenses involved before making the move.

Relocating to Florida for retirement is similar to buying a brand-new car and expecting low maintenance costs, only to find the insurance, repairs, and upkeep are significantly more expensive than anticipated. Many new Florida residents, like Arconic employees, are taken aback by the high property taxes, exorbitant insurance premiums, and unexpected condo assessments, despite the state’s no-income-tax benefits. These hidden costs have the potential to overshadow Florida’s initial appeal, much like the unexpected maintenance costs of a car that can pile up over time.

Articles you may find interesting:

Sources:

1. 'The Rich Flocked to Florida. Then Property Taxes and Condo Assessments Hit.' Yahoo Finance , 15 May 2025, www.yahoo.com . Accessed 19 May 2025.

2. 'Home Insurance Rates by State for 2025.' Bankrate , May 2025, www.bankrate.com . Accessed 19 May 2025.

3. Katz, Lily, Sheharyar Bokhari, and Grishma Bhattarai. 'Condo HOA Fees Surge in Florida Amid Insurance Crisis.' Redfin , 22 Aug. 2024, www.redfin.com . Accessed 19 May 2025.

4. 'Florida's New Condo Laws Recognize the Total Price of Living on the Coast.' University of Florida News , Oct. 2024, www.ufnews.com . Accessed 19 May 2025.

5. 'How Eliminating Property Taxes Could Impact Florida Homeowners.' U.S. News & World Report , Apr. 2025, www.usnews.com . Accessed 19 May 2025.

What retirement benefits and options are available to employees of Arconic Corporation under the Arconic Corp. Pension Plan A, and how do these benefits change based on factors such as age, service length, and retirement category? Employees of Arconic Corporation should understand their eligibility requirements for normal retirement, early retirement, and disability benefits as outlined in the company's pension plan documentation.

The Arconic Corp. Pension Plan A provides retirement benefits based on a formula that considers average earnings and service length, with normal retirement eligibility at age 65 and at least five years of service. Early retirement is available at age 55 with 10 years of service, with benefits reduced based on actuarial assumptions. Disability benefits are available after 10 years of service, and preretirement death benefits offer 50% of accrued benefits to surviving spouses(Arconic Corporation_ Ja…).

How does the frozen state of benefits and service accruals impact current and future retirees at Arconic Corporation? Employees should evaluate how the freeze, effective April 1, 2018, affects their retirement planning and what measures they can take based on their individual circumstances to optimize their retirement benefits.

The frozen state of benefits and service accruals, effective April 1, 2018, means no new service credits or compensation increases are factored into pension calculations for current employees. This freeze affects retirement planning as employees must now rely on frozen benefits and other savings plans to meet retirement needs. It’s important for employees to reassess their financial goals and consider additional investments to optimize retirement benefits(Arconic Corporation_ Ja…).

In what ways can Arconic Corporation employees ensure they meet the requirements for spousal benefits outlined in the pension plan, especially regarding preretirement and postretirement scenarios? Understanding the specifics of eligibility and benefits, such as the surviving spouse benefit calculations, is crucial for employees planning for retirement.

To ensure eligibility for spousal benefits, employees need to meet certain requirements. Preretirement surviving spouse benefits require at least five years of service, and postretirement spousal benefits reduce the participant’s monthly benefit by 5%, with 50% of the reduced amount paid to the spouse if the participant dies first. Employees should understand these provisions to plan for their family’s financial security in retirement(Arconic Corporation_ Ja…).

What are the implications of the actuarial assumptions used by Arconic Corporation in valuing its pension obligations, and how do these assumptions affect the funding of the retirement plan? Arconic Corporation employees should examine how changes in interest rates and mortality tables influence the company's ability to meet its pension obligations.

Actuarial assumptions used in Arconic Corp.’s pension valuations, such as interest rates and mortality tables, directly impact the funding of retirement plans. Changes in these assumptions can affect the pension plan’s obligations and the amount of required contributions, making it important for employees to understand how these factors influence the stability and sufficiency of their retirement benefits(Arconic Corporation_ Ja…).

Can you explain the process by which Arconic Corporation employees can appeal decisions related to their pension benefits, and what support does the company provide during this process? Understanding the proper channels for appeals and the types of documentation required can be vital for employees facing issues with their pension benefits.

Employees can appeal pension benefit decisions through Arconic Corporation’s formal process, which includes submitting an appeal with supporting documentation. The company provides guidelines on what documentation is required, and employees should follow these closely to ensure their case is reviewed thoroughly. The support provided can include detailed responses to clarify benefit calculations and decisions(Arconic Corporation_ Ja…).

What resources are available to Arconic Corporation employees to help them make informed decisions about their retirement benefits, and how can they access these resources efficiently? Employees should know where to find comprehensive materials and support services concerning their retirement plans.

Arconic Corporation offers various resources to assist employees in making informed decisions about their retirement benefits. Employees can access comprehensive plan documents, financial planning tools, and counseling services through the company’s HR department and retirement plan administrators to ensure they fully understand their options(Arconic Corporation_ Ja…).

How does the Arconic Corporation define "average earnings" for calculating retirement benefits, and what methodologies are in place to ensure accuracy in these calculations? Understanding the basis for average earnings will allow employees to better project their pension benefits and prepare for retirement.

Average earnings, used in calculating retirement benefits, are defined as the average of the five highest consecutive calendar years of compensation within the last ten years for most participants. For certain participants, different rules apply based on service and plan conditions. Employees can review their earnings history to ensure accurate calculations and projections for retirement planning(Arconic Corporation_ Ja…).

What criteria does Arconic Corporation use to determine eligibility for deferred vested benefits, and how can employees maximize their advantages in this area? Employees need to be aware of the vesting schedule and how to plan for potential career transitions while maintaining their benefits.

Eligibility for deferred vested benefits in Arconic Corporation’s plan requires five years of service, and benefits can commence as early as age 55, with reductions based on actuarial calculations. Employees should plan career transitions carefully to maximize their vested benefits, especially when considering leaving the company before retirement(Arconic Corporation_ Ja…).

How can Arconic Corporation employees prepare for the potential tax implications of their pension benefits upon retirement, especially in light of IRS regulations for 2024? Being informed about tax strategies related to retirement income can significantly enhance retirees' financial wellbeing.

Employees preparing for retirement should understand the tax implications of pension benefits, particularly in light of IRS regulations for 2024. Strategies such as tax deferral and proper timing of distributions can help minimize the tax burden on retirement income, significantly enhancing financial outcomes(Arconic Corporation_ Ja…).

What contact methods does Arconic Corporation provide for employees wishing to learn more about their pension plan details, and how can employees best utilize these methods to get their queries resolved? Understanding the effective ways to communicate with the company for assistance is key for employees navigating their retirement benefits.

Arconic Corporation provides multiple contact methods for pension-related inquiries, including direct access to HR representatives and pension plan administrators. Employees are encouraged to utilize these resources effectively by preparing questions in advance and keeping detailed records of their communications for follow-up and clarity(Arconic Corporation_ Ja…).