Florida is one of the best places to retire in America - here's exactly how much it costs for a dream retirement in the Sunshine State

The typical annual expenses of a retired couple in Orlando is roughly $54,884.

To cover these costs, your nest egg would help you generate an income of $27,884 a year at a 4% withdrawal rate, plus $27,000 from Social Security.

To retire in Orlando, where cost of living is slightly higher than in Jacksonville, Ruth and James need to increase their nest egg by more than $100,000.

The median home market value is higher at $229,000, according to Zillow. Based on Adam's calculations, with a $150,000 down payment, this leaves a mortgage of $79,000, which is $354.75 a month, or $4,500 a year. Homeowner's insurance increases to $2,290 and property taxes increase to $3,664 compared to Jacksonville. Housing in Orlando takes up almost 10% more of the couple's budget than it would in Jacksonville.

This leaves less room for miscellaneous spending. In Orlando, they can spend nearly 25% of their budget in this category — $13,450, to be exact. They'd have to cut down on activities like entertainment and dining out ($2,500), vacation or travel ($1,850), and personal care and shopping ($2,000). But, assuming that the cost of living is slightly higher here, they would have to increase their grocery budget by $500 to $4,500.

However, their portfolio is still low enough that with a 50/50 split between bond investments and stock investments, they wouldn't need to pay any federal income taxes.

The typical annual expenses of a retired couple in Boca Raton is roughly $72,425.

To cover these costs, your nest egg would help you generate an income of $45,425 a year at a 4% withdrawal rate, plus another $27,000 from Social Security.

James and Ruth need to save the most money to retire in Boca Raton — almost twice as much as what they would need to retire in Jacksonville.

This is largely because the of cost of housing. Adam says the median home market value is $350,000 in Boca. With a $150,000 down payment, that leaves James and Ruth with a mortgage of $200,000 — $898 a month, or $10,776 a year.

A higher market value also means higher homeowner's insurance ($3,500) and property taxes ($5,000). Overall, Ruth and James would spend an estimated $32,376 on housing — that's almost 45% of their budget.

Because Boca has a higher cost of living, they'll also need a bigger budget to accommodate miscellaneous expenses, such as groceries and entertainment, which can cost $6,000 and $3,500 a year respectively.

Ruth and James will also have a bigger budget for vacation and travel as well as giving to charity or family. According to Adam, providing support or assistance for children or grandchildren is becoming more common, so Ruth and James also have a bigger budget for gifts and charity ($2,800).

Boca Raton is the only place on this list where the couple is expected to pay federal taxes — $1,616 a year. While portfolio income is often taxed at low rates, according to Adam, Ruth and James have a bigger portfolio compared to Orlando and Jacksonville. If half of their portfolio was generated by stock investments ($23,266), which avoids taxation, that leaves half generated by bond investments to be taxed as ordinary income.