15 California Cities That Will Struggle the Most If Social Security Ends

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California is the second-most expensive state in the U.S. (Hawaii is the first). What makes it so pricey? It comes down, in part, to The Golden State’s strong desirability factor. It’s got great weather, a robust jobs market and plenty of career opportunities. 

But the costly cons of California may outweigh the dazzling pros — especially if you’re retired and living on a fixed income. Should Social Security benefits be slashed, or what’s worse, completely phased out, California retirees could be in serious financial trouble. 

GOBankingRates analyzed cities in California to find those that will struggle the most if Social Security benefits were to be cut. Below, we’ve listed the top 15 cities that could suffer the most without these crucial benefits. 

The cities have the highest percentage of households receiving Social Security benefits, and, as such, will be the most affected should Social Security benefits end.

15. National City

• Percentage of households with retirement income: 15.7%
• Total annual cost of living: $75,597 
• Average Social Security benefits for households that receive them: $17,291 
• Percentage of households receiving Social Security benefits: 33.9%

14. Thousand Oaks

• Percentage of households with retirement income: 27.3%
• Total annual cost of living: $103,556 
• Average Social Security benefits for households that receive them: $26,437 
• Percentage of households receiving Social Security benefits: 34.2%

13. Mission Viejo

• Percentage of households with retirement income: 28.9%
• Total annual cost of living: $115,201 
• Average Social Security benefits for households that receive them: $26,830 
• Percentage of households receiving Social Security benefits: 34.6%

12. Monterey Park

• Percentage of households with retirement income: 16.9%
• Total annual cost of living: $97,583 
• Average Social Security benefits for households that receive them: $18,900 
• Percentage of households receiving Social Security benefits: 34.7%

11. Fountain Valley

• Percentage of households with retirement income: 25.4%
• Total annual cost of living: $121,138 
• Average Social Security benefits for households that receive them: $24,389 
• Percentage of households receiving Social Security benefits: 35.0%

10. Cathedral City

• Percentage of households with retirement income: 35.1%
• Total annual cost of living: $62,945 
• Average Social Security benefits for households that receive them: $21,688 
• Percentage of households receiving Social Security benefits: 35.1%

9. Indio

• Percentage of households with retirement income: 24.3%
• Total annual cost of living: $61,514 
• Average Social Security benefits for households that receive them: $23,320 
• Percentage of households receiving Social Security benefits: 24.3%

8. Redding

• Percentage of households with retirement income: 25.0%
• Total annual cost of living: $53,646 
• Average Social Security benefits for households that receive them: $21,751 
• Percentage of households receiving Social Security benefits: 37.5%

7. Menifee

• Percentage of households with retirement income: 31.6%
• Total annual cost of living: $70,302 
• Average Social Security benefits for households that receive them: $23,550  
• Percentage of households receiving Social Security benefits: 38.1%

6. Hacienda Heights

• Percentage of households with retirement income: 19.9%
• Total annual cost of living: $97,412 
• Average Social Security benefits for households that receive them: $21,860   
• Percentage of households receiving Social Security benefits: 38.9%

5. Novato

• Percentage of households with retirement income: 28.2%
• Total annual cost of living: $113,009  
• Average Social Security benefits for households that receive them: $24,981 
• Percentage of households receiving Social Security benefits: 39.7%

4. Walnut Creek

• Percentage of households with retirement income: 34.0%
• Total annual cost of living: $132,136 
• Average Social Security benefits for households that receive them: $25,971  
• Percentage of households receiving Social Security benefits: 40.3%

3. Lincoln

• Percentage of households with retirement income: 38.8%
• Total annual cost of living: $72,573 
• Average Social Security benefits for households that receive them: $27,215 
• Percentage of households receiving Social Security benefits: 44.6%

2. Hemet

• Percentage of households with retirement income: 28.4%
• Total annual cost of living: $56,793 
• Average Social Security benefits for households that receive them: $21,514 
• Percentage of households receiving Social Security benefits: 47.6%

1. Palm Desert

• Percentage of households with retirement income: 30.5%
• Total annual cost of living: $70,771 
• Average Social Security benefits for households that receive them: $24,653 
• Percentage of households receiving Social Security benefits: 49.0%

Methodology: For this study, GOBankingRates analyzed cities in California to find the places that will struggle the most if Social Security Benefits were to end. First, GOBankingRates found cities in California using the U.S. Census American Community Survey. For each city a number of factors were found including: total population, population ages 65 and over, total households, household median income, number of households receiving Social Security Benefits, number of households receiving retirement income, average Social Security Benefits for households whom receive Social Security Benefits, and average retirement income for households whom received retirement income — all sourced from the U.S Census American Community Survey. Using this data, the percentage of the population ages 65 and over can be calculated. The cost of living indexes were sourced from Sperlings BestPlaces and include the grocery, healthcare, housing, utilities, transportation, and miscellaneous cost of living indexes. Using the cost of living indexes and the national average expenditure costs, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the expenditure cost for each location can be calculated. Using the cost of living and mortgage costs, the total cost of living can be calculated. The average single family home value was sourced from Zillow Home Value Index for August 2024. Using the average single family home value, assuming a 10% down payment, and using the national average 30 year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage can be calculated. The livability index was sourced from AreaVibes and included as supplemental information. The cities were sorted to show the highest concentration of households that receive Social Security Benefits as they represent the areas that will be most affected by the end of Social Security Benefits. All data was collected on and is up to date as of Oct. 2, 2024.

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