Lifestyle

15 Best Cities to Retire in California in 2024

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.

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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

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

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

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.

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Sacramento

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

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

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

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.

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Santa Barbara

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

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

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.

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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

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

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

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

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
Adam Cecil

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.

Best Places To Retire

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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

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Best Places To Retire

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
Adam Cecil

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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To empower a confident, worry-free retirement for everyone.

Legal

Retirable, Inc. ('Retirable') is an SEC registered investment advisor. By using this website, you accept our Terms and Conditions and Privacy Policy. Retirable provides holistic retirement planning services, which are available only to residents of the United States. You must be at least 18 years of age to become a Retirable Premium user. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.

Investing involves risk and past performance is not indicative of future results. Increased spending increases the risk of depleting your savings and performance is not guaranteed. It is very important to do your own analysis before making any decisions based on your own personal circumstances.

For more information, see our Form ADV Part II and other disclosures.

Retirable is a financial technology company, not a bank. Banking services provided by Blue Ridge Bank N.A., Member FDIC. FDIC insurance is available for funds on deposit up to $250,000 through Blue Ridge Bank N.A., Member FDIC. The Retirable Visa® Debit Card is issued by Blue Ridge Bank N.A. pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.

* Annual Percentage Yield (APY) of 5.12% is effective as of Aug 1, 2023. This is a variable rate and may change after the account is opened. Fees could affect earnings on the account.

** Refer to the fee schedule in your Consumer Deposit Account Agreement

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