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Florida is retiree-friendly when it comes to taxes. The state doesn’t have an income tax—therefore, Social Security isn’t taxed. Florida also doesn’t tax private or public pensions. Withdrawals from retirement accounts are also tax-free. But the state does have a high consumption expenditure. Consumption expenditure refers to the money individuals spend on goods and services. It is the residual disposable income after saving. Economists assume individuals allocate their income for two purposes: consumption and saving. Consumption expenditure is the largest component of aggregate demand and spending in the circular flow of national income. It is one of the most stable components of aggregate demand, showing little fluctuation from period to period. At the national level, BEA publishes annual, quarterly, and monthly estimates of consumer spending.