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California offers retirees a wide range of lifestyles, from coastal communities and mountain towns to bustling cities and suburban neighborhoods.
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However, the Golden State might be a difficult place for retirees focused on affordability to stretch a fixed income.
A recent report from retirement planning website Retirement Living ranks California near the bottom of its list of the best states for retirement in 2026 for its high housing costs, cost of living and tax burden.
“Retirement isn’t just about the size of your savings account — it’s about where those dollars go,” Retirement Living said in its July report. “Two retirees with identical nest eggs can end up with vastly different lifestyles depending on whether they settle in a state with a high cost of living or one that reflects today’s retirement migration trends toward affordability and overall value.
The study evaluated states based on factors including affordability, taxes, health care access and quality of life.
“Choosing where to retire is one of the biggest financial and lifestyle decisions you’ll ever make,” Retirement Living said. “Beyond climate and scenery, it’s worth considering how your location will affect your long-term financial security, healthcare access and day-to-day quality of life.”
Here’s why California is one of the worst states for retirement in 2026:
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Why we did this story
Our community-driven series — How to California — is here to answer your questions about state laws, history, culture, recreation and travel in the Golden State.
McClatchy’s service journalism team, focused on helping our readers navigate daily life, works in communities across the state, including San Luis Obispo, Fresno, Merced, Modesto and Sacramento.
Ask us your questions — big and small — by emailing [email protected] or filling out a form here.
What is the worst state to retire in the US?
New Mexico ranked last in Retirement Living’s 2026 study for its “bad quality-of-life indicators.”
The report cited the state’s crime rates, senior poverty and health care access among its concerns.
New Mexico has the nation’s highest property crime rate, at about 27.5 crimes per 1,000 residents, according to the report.
It also has the second-highest violent crime rate.
Financial challenges are another concern. About 13.4% of New Mexico seniors live in poverty, giving the state the third-highest senior poverty rate in the country, according to Retirement Living.
About 19.3% of New Mexico’s population is 65 or older, but Retirement Living said that advantage is “overshadowed by low scores in healthcare facility access and overall social progress.”
In 2025, Hawaii ranked as the worst state for retirement.
Why is California among worst states for retirement?
California ranked second-worst in Retirement Living’s 2026 study “due to its extreme lack of affordability,” Retirement Living said.
The state was dead last in the report’s affordability category, a ranking driven by housing costs.
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According to the study, California had the highest median home price in the country at $750,646 and the highest median monthly rent for a one-bedroom apartment at $1,835.
Taxes also create a setback for retirees. California’s top marginal individual income tax rate is 13.3%, the highest state individual income tax rate in the country.
The “cost of living makes it difficult for many retirees to maintain their standard of living without substantial savings,” Retirement Living said.
Another recent report by GoBankingRates found $1 million in retirement savings would only last about 12 years in California.
Does California have any advantages for retirees?
While California scored poorly for affordability, Retirement Living found strengths in other areas.
The state ranked No. 3 nationally for healthcare facility access, according to the report.
California also scored well for walkability.
Where are the best cities to retire in California?
According to Retirement Living, these were the 10 best cities to retire in California in 2026:
- Chico
- Daly City
- Clovis
- Vacaville
- Thousand Oaks
- Huntington Beach
- Roseville
- Visalia
- Santa Rosa
- Ventura
What are top 10 states for retirement in US?
Retirement Living said these were the top 10 best states for retirement in the country:
- Iowa
- Wyoming
- West Virginia
- Delaware
- Pennsylvania
- Indiana
- Missouri
- Maine
- Kansas
- Michigan
What are the 10 worst states for retirees?
According to Retirement Living, these are the 10 worst states for retirement for 2026:
- New Mexico
- California
- Washington
- Nevada
- Texas
- New York
- Colorado
- Hawaii
- Alaska
- New Jersey
How did Retirement Living come up with its findings?
Retirement Living ranked all 50 states for retirees by analyzing each one on its quality of life, affordability and economic strength.
Retirement Living used the most recent data available from government data and industry experts, including the U.S. Census Bureau and U.S. Bureau of Labor Statistics.
Have a question about life in California?
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We’ll answer your questions — big and small — about state laws, history, culture, recreation and travel.
Ask your questions in the form below (can’t see it? Click here) or email [email protected].
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