Retirement Planning: Why You Soon Won’t Be Able To Afford These 6 California Cities

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If your dream is to retire in California but affordability is a concern, you probably already know that major cities like San Diego, Los Angeles and San Francisco are off the table. This might lead you to explore lesser-known locations that still attract retirees. However, don’t assume these spots are budget-friendly just because they’re not as well known.

According to the U.S. Census Bureau, the annual median income for people 65 and older is $50,290. And while you might fall on either side of that statistic, California is consistently ranked as one of the most expensive places to retire.

Here are six California cities that could be out of reach for budget-conscious retirees. 

Oxnard, California

If the California coast tops your list of places to retire, Oxnard might be on your short list. But living there probably isn’t as affordable as you might hope, with a cost of living that’s 54% higher than the national average. To live in Oxnard comfortably, it takes an annual income of $73,200 for a single person and $131,040 for a family.

The median home price is close to $700,000, which is 102% higher than the national average. And if you’re thinking about renting, you can expect to pay about $2,200 per month for a two-bedroom apartment. In comparison, the national median rent for a two-bedroom apartment is just over $1,400. Healthcare costs in Oxnard are also about 7% higher than the national average.

Ventura, California

Another coastal spot retirees might set their sights on is Ventura — aka San Buenaventura. The city’s historic downtown and cultural scene are appealing, but affordability is a challenge. The cost of living in Ventura is 54% higher than the national average. To live comfortably, you’ll need a minimum annual income of $154,080 for a family or $81,200 for a single person.

Homes come with a median price tag of around $800,000. Renting a two-bedroom apartment averages about $2,500 per month. Healthcare costs are higher, too, at about 7% above the national average.

Claremont, California

Claremont is a suburb of San Bernardino with a walkable downtown, plenty of trees and 23 different parks. However, the cost of living there is about 62% higher than the national average. Additionally, the median home price is around $823,000, which is far from budget-friendly. Renting is also expensive. A two-bedroom apartment goes for about $2,500 per month. However, healthcare is about 13% lower than the national average.

To live comfortably in Claremont, a family will need $157,680 annually, while singles will need $78,800.

Petaluma, California

If historic charm and convenient access to the Pacific Ocean and wine country sound good, Petaluma in Sonoma County — about 50 miles north of San Francisco — could be a perfect retirement destination. However, it’s not cheap to live there.

The cost of living is 52% higher than the national average. The median home price is around $840,000, and renting a two-bedroom apartment averages about $2,800 per month. Healthcare costs in Petaluma are also about 10% higher than the national average, which can strain your retirement budget. A family will need a minimum annual income of $160,920, while singles will need at least $85,200 to live there comfortably. 

San Luis Obispo, California

San Luis Obispo, which is located on California’s Central Coast, is known for its mild climate, great restaurants, and proximity to both beaches and vineyards. However, the cost of living there is about 46% higher than the national average. The median home price is $932,400, and rent for a two-bedroom apartment is $2,260. Healthcare costs are also elevated — about 9% above the national average. To live in San Luis Obispo comfortably, a family will require an income of $178,560, while a single person will require $68,400.

Carlsbad, California

Carlsbad stands out for its recreational opportunities, including beaches and golf courses. Retirees who enjoy the outdoors may consider this city, but living there doesn’t come cheap. A family will need a minimum annual income of $253,080, and a single person will require $96,000. The cost of living is about 55% above the national average. Rent for a two-bedroom apartment is around $3,000, while the median home price is approximately $1.3 million. Healthcare costs, however, are about 11% lower than the national average.

All cost of living, housing, rent, income and healthcare figures were sourced from Sperling’s BestPlaces.

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