Thinking of Retiring in California? Consider This First
February 25, 2025 Executive Insights Real Estate InsightsMake Your Move Easy
Save yourself hours of research and way too many phone calls with all of the different home service providers.
Get StartedThere are a lot of things to love about California: the idyllic weather, the incredible landscape, fresh food and rich culture. There are also plenty of things to not love about California, including being expensive, dangerous and overcrowded in many popular areas. If you are retired or thinking of retiring in California, you might want to reassess that move.
“California has become an incredibly expensive place to live,” said Chris Motola, special projects editor at National Business Capital. “When looking through the lens of regional price parity, which compares cost of living to the national average, seven out of 10 of the most expensive metropolitan areas in the U.S. with populations greater than 300,000 are in California.”
“The trend of more retirees leaving for California than choosing to stay or move to the Golden State has been going on for years and will continue to get worse,” added Jason Lindwall, president of Move Concierge.
What’s causing this aversion to the biggest state on the West Coast? A few factors, actually. Here are three key signs you should not retire in California.
High Cost of Living
“Many point to the high cost of taxes on fixed-income households, but this is only a part of the reason as California offers several types of tax relief to seniors,” Lindwall said. “The big one is the astronomical cost of living compared to Texas and Florida, which is a common destination for elderly folks leaving California.”
Lindwall cited a Zillow report that showcased the average price for a home in California is up 3.2% year over year. “Retirees can sell and repurchase a new home in a cheaper state and use the proceeds for the cheaper cost of living they’ll enjoy elsewhere,” Lindwall explained.
“California’s cost of living is 42% above the national average, with housing, utilities and groceries significantly higher than in most states. Retirees on a fixed income may struggle to maintain their desired lifestyle, especially as prices continue rising,” said Yehuda Tropper, CEO of Beca Life Settlements.
Increasing Natural Disaster Threats
Earthquakes. Wildfires. Landslides. The list goes on and on with the natural disasters that California is currently dealing with and will most likely become more extreme in the future.
“More and more, the threat of natural disasters is factoring into where the elderly wish to age in place,” Lindwall said. “They don’t want a place where there is a high likelihood of evacuation.
“The Los Angeles wildfires burned around 35,000 square miles and scared the local population tremendously,” Lindwall added. “We should never underestimate the psychological toll something like this can take on someone who may have less mobility, chronic illness or other age-related ailments that can stress their health.
Tropper highlighted that in light of the recent wildfires, home insurance costs have gone up, as well as the number of policy cancellations.
Expensive Healthcare
While California is known for being a state that loves to embrace healthy living and clean lifestyles, it all comes at a cost. As retirees age and require more medical attention, the price goes up just to maintain a good bill of health, which can be quite costly in California.
“[The] monthly cost of nursing care, which is $11,437 in California versus $7,908 nationally,” Tropper added. “Unless you have a great long-term care insurance policy or a large nest egg that can cover the cost, another state is probably a better choice.”
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