Four cities in California have been recognized on a national list of the best places for upper-middle-class retirees, according to a recent MoneyLion analysis. The study examined retirement destinations for households earning approximately $125,000 to $160,000 annually, using the Pew Research Center's definition of the middle-class range. The analysis ranked 18 towns across the United States where more than 25% of the population is aged 65 or older.
California cities that made the list include Lincoln (No. 9), Palm Desert (No. 16), Fair Oaks (No. 17), and La Quinta (No. 18). The study calculated the cost of living by averaging mortgage and expenditure costs in each destination to assess their suitability for upper-middle-class retirees.
These four California locations offer a combination of amenities such as golf courses, desert landscapes, vineyard access, and suburban charm. However, the report notes that comfortably affording these areas requires a substantial retirement savings and investment portfolio. The estimated annual cost for necessities in these California cities ranges from about $65,000 to $76,000, reflecting the state's high cost of living even for affluent retirees.
Lincoln, situated northeast of Sacramento, secured the highest ranking among the California cities. Palm Desert, in Riverside County, is noted as a potential top spot for those who prefer desert heat and offer urban downtown areas with mountain views. Fair Oaks, located in Sacramento County, is suggested for wine enthusiasts seeking a retirement location near, but not in the heart of, wine country. La Quinta, also in Riverside County, is described as a desert resort city.
Nationally, Florida dominated the top spots, with Estero, Delray Beach, Bonita Springs, and Palm City securing the first four positions. Prescott, Arizona, rounded out the top five. The findings emerge as a growing number of Californians, including high earners, consider relocating due to factors such as taxes, housing costs, and quality-of-life concerns. Despite these challenges, California's climate, diverse natural settings, and lifestyle continue to attract retirees who wish to remain in the state.