5 Reasons You Can Afford To Retire in These 4 California Cities
If you’re California dreaming as a part of your retirement planning, the cost of living price tags on some big cities like San Diego, Los Angeles or San Francisco might make you hesitate. However, a California retirement isn’t out of the question in many cities throughout the Golden State based on average retirement incomes.
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As retiring in California is a dream for many, spots in the Golden State come with a valuation based on supply and demand. GOBankingRates recently did a study to find affordable cities to retire in, specifically in warmer climates, determined by factors like household income, home values and mortgage payments.
Here are key takeaways from the study, showing why you can still afford to retire in these four cities in California. Also see the safest places to retire in California.
Joshua Tree
Population of retirement age people, aged 65 and over: 1,403
Percentage of the total population that is retirement-aged: 20.8%
Median household income: $54,678
Average household value: $395,887
Average monthly mortgage costs: $2,359
Average monthly expenditures: $1,804
Average total monthly cost of living: $4,162
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Desert Hot Springs
Population of retirement age people, aged 65 and over: 4,026
Percentage of the total population that is retirement-aged: 12.4%
Median household income: $45,863
Average household value: $389,075
Average monthly mortgage costs: $2,318
Average monthly expenditures: $1,895
Average total monthly cost of living: $4,213
La Quinta
Population of retirement age people, aged 65 and over: 11,435
Percentage of the total population that is retirement-aged: 30.1%
Median household income: $92,776
Average household value: $786,803
Average monthly mortgage costs: $4,687
Average monthly expenditures: $1,859
Average total monthly cost of living: $6,546
Palm Springs
Population of retirement age people, aged 65 and over: 14,913
Percentage of the total population that is retirement-aged: 33.2%
Median household income: $67,451
Average household value: $1,057,636
Average monthly mortgage costs: $6,301
Average monthly expenditures: $1,876
Average total monthly cost of living: $8,177
5 Reasons California Retirement Might Not Be Out of Reach
As any financial advisor will tell you, your retirement benefits, savings and investments only go as far as your budget.
Cost of Living
While California is often perceived as having a high cost of living, it’s important to note that this varies significantly across the state. While major metropolitan areas like San Francisco and Los Angeles have high costs, other regions and metropolitan have much more reasonable costs of living.
Living costs vary greatly depending on where in California you live, however. There are still plenty of even popular cities that come under $5,000 a month. For example, Joshua Tree has an estimated average total monthly cost of living of $4,162 and Desert Hot Springs comes in at $4,213.
Diverse and Affordable Housing Options
California offers a wide range of housing options that cater to different budgets. While many cities are famous for their high property prices, there are many affordable alternatives. Surrounding neighborhoods of bigger metropolitan areas or smaller towns provide a break on your mortgage payments.
Depending on your retirement budget you can find somewhere on the higher end like Palm Springs with average mortgage payments coming in just over $6,000.
Tax-Friendly for Your Benefits
California provides several tax benefits, making retirement more affordable. Social Security benefits aren’t taxed at the state level, significantly reducing your tax burden. These benefits extend to any survivor’s benefits or disability benefits, but you should note that Social Security may be partially taxable by federal law.
Additionally, California offers property tax relief programs for seniors, including the Property Tax Postponement Program and the Senior Citizen Property Tax Assistance Program. These initiatives help lower the financial strain on retirees, making it easier to manage living expenses.
Abundant Healthcare
One of the most critical factors for retirees is access to quality healthcare and California excels in this area. The state’s home to some of the best medical facilities and healthcare providers in the country.
With numerous hospitals, clinics and specialized care centers, retirees can find excellent healthcare options without traveling far. Additionally, California’s participation in Medicaid and Medicare ensures that you’ll have access to affordable healthcare services, further reducing your financial burden in retirement.
Active and Healthy Lifestyle
California’s climate and natural beauty encourage an active and healthy lifestyle, leading to lower healthcare costs in the long run. The mild winters and overall gentle climate the state boasts can support outdoor activities all year long.
Staying active can help retirees maintain their health and well-being, potentially reducing medical expenses. Furthermore, California’s diverse and fresh food options support a healthy diet, contributing to overall better health of your body and your budget.
Final Thoughts
The bottom line is that retiring in California may seem daunting due to its reputation for high living costs, but if you know where to savvily shop for real estate, you may be able to turn your California retirement dreams into reality.
With the cost of living steadily rising across the board, knowing you can make the right money moves for you where it counts is crucial to the well-being of your financial future.
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This article originally appeared on GOBankingRates.com: 5 Reasons You Can Afford To Retire in These 4 California Cities
