Deciding to retire is a big step, and you’ll make a lot of decisions. Often, those decisions may come faster than you'd expect. One of the biggest is choosing whether you want to stay in your current location or move somewhere else.
California tends to inspire strong opinions. People hear "California" and immediately think either dream destination or too expensive to consider. The truth sits somewhere in between.
Few places let you spend a morning in the mountains and an afternoon at the beach, or choose between a buzzing city and a quiet coastal town without leaving the state. That magic can convince even the retiree that's on the fence. With the right income plan and neighborhood, the Golden State is an incredible destination to spend your retirement years under the sun. Here are seven reasons to retire in California.
1. California Has Several Tax Exemptions That Benefit Retirees
It’s no big secret that California taxes are high. The top income tax rate is among the highest in the country, and pensions, 401(k) distributions, and traditional IRA withdrawals are all taxed as ordinary income.
However, there are certain housing and sales tax exemptions aimed toward retirees:
- California doesn't tax Social Security benefits at all, at any income level.
- There's no state estate or inheritance tax, which makes passing wealth to your family simpler.
- Groceries and prescription drugs, two of the biggest expenses for seniors, are not subject to sales tax.
- There is a housing tax exemption of $7,000 for those living in their home. Those who meet income requirements may also be able to defer property tax payment, lowering taxes further.
- Proposition 13 capping annual assessment increases at 2%, a protection that grows more valuable the longer you stay in your home.
- Homeowners 62 and older who meet an income limit can even postpone property tax payments through the state's Property Tax Postponement Program.
You’ll still have to pay a steep price to live in California, especially in extremely populated cities. Just living on Social Security can get difficult when it comes to a California retirement, so if you don’t have a pension, 401(k), or another significant income source, it might not be the best idea to retire in California.
2. California Has Amazing National Parks
California might be the state with the highest population by far (the second-highest, Texas, has 10 million fewer residents), but much of the land isn’t even incorporated. If you’re a nature lover, there are places across the state that you can visit.
- Death Valley National Park covers more than three million acres of dunes, salt flats, and painted canyons. Summer temperatures can top 120 degrees, so plan a winter visit. Mid-February to early April is wildflower season and the prettiest time to go.
- Yosemite National Park is famous for its towering granite cliffs and waterfalls.
- Sequoia and Kings Canyon National Parks are home to the largest trees on earth.
- Joshua Tree National Park offers an otherworldly high-desert landscape unlike anywhere else in the state.
- The redwood forests of the north coast let you walk among trees older than the country itself.
For retirees, there's a bonus worth knowing about: anyone 62 or older can buy a lifetime America the Beautiful Senior Pass from the National Park Service that covers entrance to every national park and federal recreation site in the country. It's one of the best deals in travel, and it turns a lifelong love of the outdoors into an affordable, everyday part of retirement.
3. Entertainment Is Everywhere
We’re not talking about Disneyland (although that can be quite fun). While you might enjoy the theme park occasionally, especially when family comes to visit, Disneyland might be a bit too pricey to visit regularly. Luckily, there are hundreds of other attractions to visit all over California, and many of them are affordable or even free.
- In San Francisco, you can visit the Golden Gate Bridge, Fisherman’s Wharf, or Pier 39.
- In Los Angeles, there’s Griffith Park, the Getty, and the Hollywood Sign.
- San Diego is home to the San Diego Zoo and the Birch Aquarium. Let’s not forget Yosemite National Park, Joshua Tree National Park, Mount Shasta, and Lake Tahoe.
You’ll never run out of things to do living in California!
4. California Has a Culture All Its Own
From the glitz and glamor of Los Angeles to the relaxed, sun-soaked feel of San Diego to the artistic and cool vibe of San Francisco, California blends all these elements for a distinctive culture. You’ll find everything here: music, art, theatre, and in some cases, a mix of all three. Rock legends and superstars hone their craft here, giving rise to musical powerhouses from the Doors to Guns n’ Roses.
California is one of the most diverse states in the US, creating a fantastic mix of food, architecture, and customs. From surf culture to theater, and from its hippies of the 1960s to the high-tech industry of the modern era, California celebrates its rugged individualism.
5. California Has Some of the Best Weather in the Country
One of California’s biggest draws is the weather. While much of the country’s weather tends to fluctuate wildly depending on the season, California, especially Southern California, maintains a comfortable steadiness all year long. San Diego sees an average of 146 clear, sunny days per year, making it one of the sun-shiniest cities in the country.
6. You Can Go Skiing, Then Surfing
In most states, you must decide between the beach and the mountains, because these two things are often far apart, and weather plays a factor.California's long north-south layout changes the math: chilly, exciting ski slopes can sit just an hour or two from world-class surfing beaches.
Resorts around Lake Tahoe and Mammoth Mountain draw skiers and snowboarders all winter, while the beaches of Malibu, Santa Cruz, Pismo, and San Diego stay inviting most of the year. You don’t have to decide, since in Cali you can do it all.
7. The Food Is Spectacular
No matter what your culinary preference, you’ll find it in California. From fine dining to food trucks and from steakhouses to vegan joints, Cali has everything. A very diverse population means some terrific types of cuisine, as well.
Whether you’re in the mood for Mediterranean, Asian, Mexican, or American, you’ll find everything you’re looking for. Oh, and make sure to pair your dish with some amazing local wine from the Napa Valley region.
Find the Perfect Apartment to Retire in California With Apartments.com
Trying to decide where to retire is a big decision. If California is on your list of retirement locations, hopefully these seven reasons to retire in California made the choice a little easier.
Whether you're drawn to the coast, the mountains, or a walkable city center, Apartments.com makes it easy to compare neighborhoods, filter by the amenities that matter to you, and find a rental that fits your retirement goals.
This article was originally published on April 26, 2023, by the Apartments.com Team and has been updated.
FAQs
Does California tax Social Security benefits?
No. California fully exempts Social Security retirement, disability, and survivor benefits from state income tax, at every income level. Your benefits may still be taxable at the federal level depending on your total combined income, but the state takes nothing.
Is California expensive for retirees?
Generally, yes. With our cost of living tool, you can compare the cost of living between cities in California to determine which Californian city is best for your budget.
Which parts of California suit retirees who don't drive much?
Walkable, transit-served areas like parts of San Diego, coastal Orange County, and pockets of the Bay Area tend to work best for retirees who'd rather not rely on a car. Most retirees gravitate toward the milder, sunnier Southern California climate for year-round outdoor activity.
Do I need a car to retire comfortably in California?
In most of the state, yes. Not only are most cities built around driving, but exploring the length of the state requires a car. The exceptions are the denser urban cores noted above, where good transit and walkability can reduce or eliminate the need for one.
