Lifestyle
One of the best things about retiring within California is that no matter where you live, you’re just hours from a variety of travel experiences.
Adam Cecil
Published March 9th, 2021
Updated January 19th, 2024
Adam Cecil
•
Published March 9th, 2021
•
Updated January 19th, 2024
Table of Contents
Key Takeaways
As the most populous state in the U.S., California has a lot to offer retirees.
The cost of living across the state is higher than the national average, but there are areas where you can find affordable housing and cheaper amenities.
The state is so diverse, it’s important to narrow down the type of community you’re seeking—whether it’s coastal living, a city rich in history, or a more suburban lifestyle.
California isn’t exactly known for its affordable cost of living. But one of the best things about retiring within the state is that no matter where you live, you’re just hours from a variety of travel experiences. California doesn’t tax Social Security income, but other forms of retirement income will be taxed, making it less than stellar when it comes to tax friendliness. But despite its high cost of living, California retirement doesn’t have to break the bank.
Here are the 15 best cities to retire in California.
San Diego
CITY POPULATION: 1,386,932
SHARE OF POPULATION 65+: 14.4%
COST OF LIVING FOR RETIREES: 50.4% above the national average
MEDIAN HOME VALUE: $961,892
MEDIAN RENT: $2,995
TAX RATING FOR RETIREES: Not Tax Friendly
A warm year-round climate and access to everything you could possibly need put San Diego at the top of the list of best places to retire in California. You can find 55-plus communities, swanky condos, or a house to fit your lifestyle. You’ll also have access to a robust healthcare system, with a wide range of medical facility types.
Redondo Beach
CITY POPULATION: 71,576
SHARE OF POPULATION 65+: 14.5%
COST OF LIVING FOR RETIREES: 38.3% above the national average
MEDIAN HOME VALUE: $1,383,650
MEDIAN RENT: $3,595
TAX RATING FOR RETIREES: Not Tax Friendly
Beach living is typically more expensive, and Redondo Beach is no exception. But you’ll get shopping, dining, and plenty of culture. What makes Redondo Beach one of the best retirement communities in California, though, is its private slip harbor, making it ideal for boaters.
Los Gatos
CITY POPULATION: 33,529
SHARE OF POPULATION 65+: 20.1%
COST OF LIVING FOR RETIREES: 78% above the national average
MEDIAN HOME VALUE: $2,368,157
MEDIAN RENT: $3,281
TAX RATING FOR RETIREES: Not Tax Friendly
Located in an area of the state known as “South Bay,” Los Gatos has plenty to offer retirees. It’s one of the best cities to retire in California because of its access to healthcare and warm climate. You’ll also have your choice of activities, from the arts to outdoor recreation.
Sacramento
CITY POPULATION: 524,943
SHARE OF POPULATION 65+: 14.9%
COST OF LIVING FOR RETIREES: 17.4% above the national average
MEDIAN HOME VALUE: $466,890
MEDIAN RENT: $1,995
TAX RATING FOR RETIREES: Not Tax Friendly
California can be pricey, but Sacramento is among the most affordable towns in the state. Sacramento is rich with history, including cobblestone streets and historic buildings. You’ll also get all the amenities of suburban life, including dining, shopping, and access to healthcare.
Santa Clarita
COUNTY POPULATION: 228,673
SHARE OF POPULATION 65+: 13.5%
COST OF LIVING FOR RETIREES: 41.9% above the national average
MEDIAN HOME VALUE: $770,288
MEDIAN RENT: $3,250
TAX RATING FOR RETIREES: Not Tax Friendly
Like other best places to retire on the west coast, Santa Clarita is valuable for its history and culture. It’s part of the Santa Clarita Valley, located just a short drive from Los Angeles, but you’ll have everything you need in town.
Los Angeles
CITY POPULATION: 3,898,747
SHARE OF POPULATION 65+: 14.5%
COST OF LIVING FOR RETIREES: 44.3% above the national average
MEDIAN HOME VALUE: $920,605
MEDIAN RENT: $2,795
TAX RATING FOR RETIREES: Not Tax Friendly
Plenty has been written about the “City of Dreams,” mostly because of the city’s entertainment industry. But if you’re looking at retirement, California’s best-known city is worth consideration. The diverse population and mild temperatures make it a great place to live no matter your age.
Newport Beach
CITY POPULATION: 85,239
SHARE OF POPULATION 65+: 21.6%
COST OF LIVING FOR RETIREES: 40.6% above the national average
MEDIAN HOME VALUE: $920,605
MEDIAN RENT: $2,795
TAX RATING FOR RETIREES: Not Tax Friendly
For a slightly larger over-65 population, there’s Newport Beach. Often when people research where to retire in California, Newport Beach tops the list for its access to healthcare and activities. If you like beachfront living, this will probably be one of the more affordable options.
Santa Barbara
CITY POPULATION: 88,665
SHARE OF POPULATION 65+: 22%
COST OF LIVING FOR RETIREES: 47.8% above the national average
MEDIAN HOME VALUE: $1,733,978
MEDIAN RENT: $4,500
TAX RATING FOR RETIREES: Not Tax Friendly
Another coastal city is Santa Barbara. History and culture, as well as access to beautiful beaches, make this one of the best retirement communities in California. The Spanish history is evident in many of the buildings throughout the city.
San Luis Obispo
CITY POPULATION: 47,063
SHARE OF POPULATION 65+: 13.5%
COST OF LIVING FOR RETIREES: 43.6% above the national average
MEDIAN HOME VALUE: $1,006,867
MEDIAN RENT: $3,200
TAX RATING FOR RETIREES: Not Tax Friendly
Another city rich with Spanish architecture is San Luis Obispo. But what makes it one of the places to retire in California is its warm weather, coastal location, and breathtaking views.
Salinas
CITY POPULATION: 163,542
SHARE OF POPULATION 65+: 11%
COST OF LIVING FOR RETIREES: 50.6% above the national average
MEDIAN HOME VALUE: $699,523
MEDIAN RENT: $2,200
TAX RATING FOR RETIREES: Not Tax Friendly
Salinas is known for its massive farming industry, which means miles of greenery. You’ll find horse farms and vineyards in the area to add to the overall aesthetic. The mild climate promotes plenty of outdoor events throughout the year, so you’ll never be bored.
Visalia
CITY POPULATION: 141,384
SHARE OF POPULATION 65+: 13.4%
COST OF LIVING FOR RETIREES: 0.3% below the national average
MEDIAN HOME VALUE: $367,656
MEDIAN RENT: $1,900
TAX RATING FOR RETIREES: Not Tax Friendly
For a suburban feel, there’s Visalia, which has a lower cost of living than many other California cities. There are plenty of parks, shops, and restaurants, so you’ll have everything you need.
Riverside
CITY POPULATION: 314,998
SHARE OF POPULATION 65+: 12.4%
COST OF LIVING FOR RETIREES: 17% above the national average
MEDIAN HOME VALUE: $605,353
MEDIAN RENT: $2,275
TAX RATING FOR RETIREES: Not Tax Friendly
With plenty of active adult communities and a warm climate, Riverside is a great option for those wanting to retire to Southern California. What really sets the town apart, though, is its thriving healthcare services industry.
Palm Springs
CITY POPULATION: 44,575
SHARE OF POPULATION 65+: 33.2%
COST OF LIVING FOR RETIREES: 15.2% above the national average
MEDIAN HOME VALUE: $651,273
MEDIAN RENT: $3,600
TAX RATING FOR RETIREES: Not Tax Friendly
Retirees often choose Palm Springs as a more affordable alternative to L.A. That gives it a higher than average population of older adults, which makes it one of the best retirement communities in Southern California.
San Jose
CITY POPULATION: 1,013,240
SHARE OF POPULATION 65+: 14.6%
COST OF LIVING FOR RETIREES: 78% above the national average
MEDIAN HOME VALUE: $1,316,960
MEDIAN RENT: $2,966
TAX RATING FOR RETIREES: Not Tax Friendly
Its close proximity to Silicon Valley makes San Jose an in-demand area. That means you’ll have access to all the amenities you could possibly need, but it also brings a high cost of living.
Costa Mesa
CITY POPULATION: 111,918
SHARE OF POPULATION 65+: 14.3%
COST OF LIVING FOR RETIREES: 40.6% above the national average
MEDIAN HOME VALUE: $1,217,946
MEDIAN RENT: $3,000
TAX RATING FOR RETIREES: Not Tax Friendly
A year-round warm climate and close proximity to beaches make Costa Mesa one of the top retirement communities in California. Although the cost of living is high, there are affordable housing options available, including multiple 55-plus communities.
Frequently Asked Questions
We have the answers to your frequently asked questions about retiring in California.
Is California tax-friendly for seniors?
While Social Security income is not taxed in California, other forms of retirement income are. That means any income from public or private pensions as well as withdrawals from accounts like 401(k)s and IRAs will be taxed. California also has nine different income tax tiers ranging from 1% to a whopping 12.3%, so the more money you’re pulling from those accounts, the more tax you’ll end up owing.
Do seniors in California pay property taxes over 65?
Most seniors will pay property tax in California. Retirees with lower incomes may qualify for a property tax postponement. This program postpones property taxes owed until the homeowner dies, sells the home, or meets another of the program’s triggers. It’s important to remember that even if you do qualify for this program, the property tax will eventually have to be paid, either out of your estate, the proceeds from your home, or another source of income.
What benefits do seniors get in California?
The California Department of Aging has a number of programs for seniors, including the CalFresh Health Living program for nutrition and exercise activities, senior employment training, and the Dignity at Home Fall Prevention Program.
Bottom Line
If you’re calculating how much do you need to retire in California, it’s important to first know the cost of living where you’re going. The state is large and full of variety, so one city won’t bring the same options as another. Once you’ve identified your favorite future home, it’s important to sit down with a Certified Financial Planner® to make sure you’re setting enough aside.
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Adam Cecil is a freelance writer who has produced financial content for Retirable, Policygenius, and Donational, In his free time, he writes the weekly pop culture newsletter Night Water and produces independent fiction podcasts.
Getting Started
Northeastern U.S. Best Places To Retire
Southern U.S. Best Places To Retire
Midwestern U.S. Best Places To Retire
Western U.S. Best Cities To Retire
Share this advice
Adam Cecil is a freelance writer who has produced financial content for Retirable, Policygenius, and Donational, In his free time, he writes the weekly pop culture newsletter Night Water and produces independent fiction podcasts.
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