In this article, we will explore the 16 best places to retire in California. If you wish to skip our detailed analysis on a Californian retirement and best places to retire in California, you may go to 5 Best Places to Retire in California.
A Californian Retirement
According to Northwestern Mutual, Americans need $1.27 million for a comfortable retirement. However, respondents in their survey have revealed they still need to meet their million-dollar retirement goal. In fact, they have only $89,300 set aside, on average. The question is, is this amount enough to sustain retirement amidst rising inflation and longer life expectancies?
Well, the answer is that it depends on where they choose to retire. The main determinants of how far retirement income can go are taxes and the cost of living. To get the best bang for their retirement buck, retirees are exploring diverse destinations within and outside the USA. Many of them are flocking towards the South, some are venturing into Central America, and others are opting for the magnificent Caribbean.
Prospective retirees are now saving with $1.27 million goal in mind. However, for those wishing to retire in the Golden State, aka California, this sum may only last for a while. Home to big companies like Apple Inc. (NASDAQ:AAPL), The Walt Disney Company (NYSE:DIS), and Tesla, Inc. (NASDAQ:TSLA), California is an expensive yet dreamy retirement destination for many. The Missouri Economic Research & Information Center notes that the cost of living index for the state is 134.5, implying that living expenses are 34.5% above the US average.
Retiring in California has many pros and cons. As evident by the 134.5 cost-of-living index, many retirees may not be able to sustain their retirement income here for long. The $1 million savings may, in fact, last them for only 15 years, on average. Housing affordability is another challenge for retirees, especially in desirable locations. The income tax system is progressive, implying that retirement incomes, such as pension, may be subject to taxation.
However, many retirees still choose to forego these cons over the high quality of life the state promises. Beautiful coastlines, stunning mountains, and lush national parks are major reasons retirees choose the state. The robust healthcare system, and retirees have access to high-quality medical care. Moreover, there are many retirement communities in the state that ensure retirees live a life according to their preferences and needs.
Best Places to Retire in California
California is often associated with a sense of magic and action. Understandably, The Walt Disney Company (NYSE:DIS) brings the most magic in the state. The state also promotes a healthy and active lifestyle, and many places in California, such as San Jose, Santa Barbara, and San Francisco have been featured as the best places to retire for active adults by Insider Monkey. It is also home to Hollywood, considered the global center for the television and film industry. The state also has a reputation for fostering technological advancements in Silicon Valley, and some of the largest tech companies like Apple Inc. (NASDAQ:AAPL) and Tesla, Inc. (NASDAQ:TSLA) are headquartered here.
Therefore, retirees looking for the ultimate combination of nature, innovation, action, and health should know that California is the place to be in. According to Forbes, the top ten cities to retire in California include Bakersfield, Fresno, Modesto, Oxnard, Vallejo, San Jose, Los Angeles, San Francisco, San Diego, and Sacramento. For retirees who wish to live here but wish for more affordable options, smaller inland towns and communities can be ideal. As such, Vacaville, Citrus Heights, Roseville, and Fairfield are some of the best places to retire in California on a budget.
Another type of location that is a hit with retirees is beach towns. Good weather, water-based activities, and relaxation on the coast are the top reasons seniors move near the coast. For those looking for something similar, the best coastal towns in California to retire to are La Jolla in San Diego, Huntington Beach, Carmel-by-the-sea, and Santa Barbara. Many retirees also consider the southern part of California for its mild and sunny weather, coastal views, and entertainment offerings. As such, the best place to retire in southern California is Santa Clarita. Beautiful weather, small-town feel, and good quality of life are the top attractions of this place.
16 Best Places to Retire in California in 2023
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Methodology
In order to compile the list of the best places to retire in California in 2023, we have used Niche, World Population Review, US Money News & World Report, and Forbes as our sources. We used these sources to determine the number of times each place was recommended by each source, awarding one point each time a place was recommended.
Since many places had the same scores, we decided to tie-break them on the basis of their cost of living. In the case where two places had the same scores, the least expensive place of them was awarded 0.2 additional points, while the other one was awarded 0.1 additional points. Similarly, out of 3 places, the least expensive place was awarded 0.3 additional points, the second least expensive with 0.2 additional points, and so on.
We have also mentioned the cost of living and median housing prices of homes in the places discussed. The cost of living has been sourced from Best Places, while median housing prices are from Redfin and Realtor.
The scores were then summed up to come up with an Insider Monkey score. Places are then listed out in an ascending order from the lowest to the highest scores.
16 Best Places to Retire in California in 2023
16. Newport Beach
Insider Monkey Score: 2
For retirees looking for a vibrant community, Newport Beach boasts a high concentration of seniors at 23.3%. Retirees love this coastal town for its beautiful sandy beaches and the abundant water-based activities it brings along. The cost of living is crazy expensive, at 253.1% higher than the US average. Regardless, safe streets, exclusive amenities, a luxury real estate market, and desirable coastal location make the city worth every penny.
In case your grandkids come to visit, The Walt Disney Company (NYSE:DIS)'s Disneyland is only an hour away. The median listing home price in Newport Beach, as of 2023, is $4.5 million. The healthcare facilities in the city are also top-class, another major draw for retirees.
15. San Jose
Insider Monkey Score: 2.1
The capital of Silicon Valley, San Jose, can be an ideal destination for retirees. The city is widely recognized for its distinct downtown centered around Plaza de Cesar Chavez, a beautiful park filled with lush green spaces, art installations, and fountains. There are numerous theaters and performance venues, and the culinary landscape is also extremely diverse.
For those interested, bars, lounges, and clubs are the perfect nightlife escapades to relax, unwind, and socialize. The city is also in close proximity to tech headquarters in Silicon Valley, such as Apple Inc. (NASDAQ:AAPL) and Tesla, Inc. (NASDAQ:TSLA), emphasizing its innovative spirit. Predictably, the cost of living in the city is 115% higher than the US average, and the median listing home price was $1.3 million as of June 2023.
14. Bakersfield
Insider Monkey Score: 2.2
Located in proximity to Los Angeles, Bakersfield is another affordable destination in California. As compared to the US average, the cost of living is only 3.4% higher, while it is 46.5% cheaper to live here as opposed to the rest of California. Housing is also relatively affordable, with the median listing home price being $400,000 as of June 2023. The city boasts a Mediterranean climate, and the broad range of parks, golf courses, and other outdoor spaces is enough to keep residents busy. Quality medical care is easily accessible, and there are plenty of senior living communities to choose from.
13. Fresno
Insider Monkey Score: 2.3
Boasting a Mediterranean climate, Fresno is an ideal retirement destination for retirees. Not only does it stand out in terms of affordability, in comparison to other California destinations, it also provides plentiful cultural and recreational opportunities. It is widely known for its fresh fruits and nuts and is home to several museums, theaters, art galleries, music venues, national parks, and lakes. Popular places to visit include Yosemite National Park, Sierra National Forest, Woodward Park, and Shinzen Japanese Garden, to name a few. Housing is also highly affordable in the city as compared to the rest of California, with the median home price being $393,500. The cost of living is 46.6% lower than the state average, and 3.3% higher than the US average.
12. Santa Rosa
Insider Monkey Score: 2.4
Senior medical care, a relaxed pace of life, and a rich cultural scene draw retirees to the famous Santa Rosa. The city is very focused on an active lifestyle, and plenty of gyms are throughout the place. The Mediterranean climate is also a plus, and there is breathtaking natural beauty all around, such as rolling hills and picturesque vineyards. Vibrant cultural offerings include theaters, art galleries, and music venues. Luther Burbank Center for the Arts, a premier arts and events center, is also here. According to Redfin, the median home price in Santa Rosa is $726,000 as of June 2023.
11. Salinas
Insider Monkey Score: 2.5
Stunning natural landscapes, proximity to the famous Monterey Peninsula, and plentiful recreational opportunities make Salinas a good retirement destination. In Monterey County, retirees can explore and enjoy scenic drives, state parks, and the stunning Monterey Bay coastline. The city also has plenty of hospitals, clinics, and medical centers. The cost of living in Salinas is 40.5% higher than the California average, and the median listing home price in the city was $765K as of June 2023.
10. Oxnard
Insider Monkey Score: 2.6
Located along the beautiful Southern California coastline, Oxnard can be a beautiful place to consider retirement in. Beautiful beaches and a relaxed coastal lifestyle attract retirees to this scenic location. The city boasts a rich cultural scene, with many museums, theaters, and galleries. Healthcare facilities are robust, with quality healthcare available to retirees in the city. The cost of living is 39.6% higher than the national average, and the median home price is $693,187.
9. Fairfield
Insider Monkey Score: 2.7
Fairfield, a beautiful and vibrant city, can be a great place to retire for seniors. The climate is mild all year round, offering the perfect setting for retirees to enjoy the outdoors. The renowned Napa Valley wine region is nearby, granting access to world-class vineyards, wineries, and scenic views. Parks, golf courses, and other outdoor spaces can keep seniors busy too. Quality healthcare services are also available here. The cost of living is 35.4% above the US average, while the median listing home price, as of June 2023, was $672,500.
8. Modesto
Insider Monkey Score: 2.8
One of the best places to retire in California in 2023 is Modesto. Even though the cost of living is 14.9% higher than the US average, retirees will find it 35% more affordable than the rest of California. Besides affordability, the warm weather is also very appealing to retirees. San Francisco and Sacramento are only two hours away, and a range of amenities make living here a pleasant experience. The median sale price of a home in Modesto is $440,000. It is also home to the world's largest winery called E. & J. Gallo Winery.
7. Visalia
Insider Monkey Score: 2.9
Another reasonably affordable destination in California is Visalia. The cost of living is only 2.3% higher than the US average, while the median listing home price, as of June 2023, was $414,400. Home to impressive natural wonders, retirees love to explore the natural beauty of Sequoia National Park, marvel at some of the tallest mountains in Sierra Nevada mountains, and visit other parks, golf courses, and outdoor spaces. Healthcare facilities in the city are also top-quality, and there are vibrant cultural offerings to enjoy.
6. San Francisco
Insider Monkey Score: 3
San Francisco can be a great place to retire if you can afford the expenses. The cultural and arts scene is vibrant, there are world-class dining options, and healthcare facilities are top-notch. Retirees can enjoy Michelin-starred restaurants, iconic landmarks such as the Golden Gate Bridge, and the picturesque coastline. San Francisco is also one of the best places for an active retirement, with an excellent public transportation system and great walkability. The cost of living is 144% higher than the national average, and the median housing price was $1.4 million as of June 2023.
