{"id":94632,"date":"2025-07-26T17:37:13","date_gmt":"2025-07-26T17:37:13","guid":{"rendered":"https:\/\/www.europesays.com\/us\/94632\/"},"modified":"2025-07-26T17:37:13","modified_gmt":"2025-07-26T17:37:13","slug":"why-retirees-are-leaving-california-according-to-an-agent","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/94632\/","title":{"rendered":"Why Retirees Are Leaving California, According to an Agent"},"content":{"rendered":"

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California is a dream retirement<\/a> destination for many people due to its sunny weather, scenic coastlines and active lifestyle. But in recent years, more retirees are leaving the Golden State.<\/p>\n

To understand what\u2019s driving this trend, GOBankingRates spoke to Tiana Uribe, a California real estate agent at TRU Financial Services<\/a>, who shared four reasons why so many retirees are choosing to sell their homes and start a new chapter elsewhere<\/a>.<\/p>\n

High Cost of Living<\/p>\n

Living in California isn\u2019t cheap, and when you\u2019re on a fixed income<\/a>, every dollar counts. Many retirees find it hard to stretch their retirement savings with the cost of housing, healthcare and everyday expenses.<\/p>\n<\/p>\n

\u201cThe Sunshine State comes with a hefty sunshine tax in terms of affordable housing and cost of living when on a fixed income,\u201d said Uribe. \u201cRetirees may sell and relocate entirely or downsize their home and rent it while spending time elsewhere in the country.\u201d<\/p>\n

High Taxes<\/p>\n

California\u2019s tax structure can be burdensome, especially when it comes to retirement income<\/a>. While Social Security isn\u2019t taxed by the state, income from pensions, 401(k) plans and IRAs is. <\/p>\n

\u201cCalifornia state income tax is one of the highest at a 13.3% maximum. The state taxes retirement income, think pension and 401(k) [plans] (not Social Security), as regular income,\u201d Uribe noted.<\/p>\n<\/p>\n

Additionally, \u201cthere are nuances and complex rules if you move into or out of the state within the same year that would be best discussed with a certified financial planner, tax strategist or [certified public accountant],\u201d she added. <\/p>\n

For this reason, moving out of the state can offer many tax advantages for retirees.<\/p>\n

Family Proximity<\/p>\n

Another driving factor is proximity to family, especially when children and grandchildren are living in other states. Retirees often want to be around their loved ones while they enjoy their golden years.\u00a0<\/p>\n

\u201cWe\u2019ve had retirees relocate to be closer to extended family who may have found limited affordability in California,\u201d said Uribe. \u201cBeing able to purchase a house at a lower median price and be near family remains a top priority.\u201d<\/p>\n<\/p>\n

Quality of Life Concerns<\/p>\n

California\u2019s busy urban centers, rising crime rates in some areas and growing homelessness crisis are also prompting retirees to leave the state.\u00a0<\/p>\n

\u201cFrom homelessness to crime (depending on the city) and lack of affordability<\/a>, retirees tend to relocate to quieter areas that may have decreased homelessness,\u201d Uribe added. <\/p>\n

For those who spent their working years in high-pressure cities, retirement is a time to slow down, and many are seeking quieter, more peaceful communities.<\/p>\n

Political Values<\/p>\n

\u201cFor some retirees, political and cultural values also play a role in their decision to leave. With high tax rates and differing political viewpoints, retirees may relocate to other states that align more with their political and religious values,\u201d said Uribe.<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"S.Borisov \/ Shutterstock.com Commitment to Our Readers GOBankingRates’ editorial team is committed to bringing you unbiased reviews and…\n","protected":false},"author":3,"featured_media":94633,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[64,8726,4313,255,4329,67,132,68],"class_list":{"0":"post-94632","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-gobankingrates","10":"tag-investing","11":"tag-personal-finance","12":"tag-real-estate","13":"tag-united-states","14":"tag-unitedstates","15":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114920753961644866","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/94632","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=94632"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/94632\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/94633"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=94632"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=94632"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=94632"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}