Laguna Woods, a Southern California city known for its retirement-focused community, has been recognized as the best place to retire in California, according to a recent study by personal finance website GOBankingRates. In contrast, Orange Cove, a small city in Fresno County, was ranked as the state's worst city for retirees.
The study evaluated cities based on factors including retirement income, livability, and the cost of living. Laguna Woods, located in Orange County, is home to Laguna Woods Village, one of the largest age-restricted communities in the United States, and has a high concentration of residents aged 65 and older.
Households in Laguna Woods that receive retirement income reported an average of $41,089 annually, while those receiving Social Security collected an average of $24,300. The city's average monthly cost of living was $1,915, with an average monthly mortgage cost of $2,874 and a typical single-family home value of $482,377. Laguna Woods also achieved a livability score of 72.
Orange Cove, a community southeast of Fresno, presented a different financial picture for retirees. Households receiving retirement benefits there averaged $31,666 annually, and those receiving Social Security averaged $9,788. The city recorded a livability score of 45, the lowest among California cities included in the analysis. Although Orange Cove had lower average living costs and home values than Laguna Woods, it lagged in retirement income and overall livability.
Nationally, other cities were highlighted in the report. The Villages, Florida, was named the top retirement city in Florida, while Sun City, Arizona, led in Arizona. Kerrville, Texas, and Mesquite, Nevada, were the highest-ranked cities in their respective states.
The study also pointed out that some well-known cities did not fare well in the rankings. Aspen, Colorado, was named the worst place to retire in its state due to high housing costs. Miami Beach, Florida; Seattle, Washington; and Salt Lake City, Utah, also ranked last in their states, illustrating the financial challenges retirees can face in expensive metropolitan areas.
To compile these rankings, GOBankingRates analyzed data from the U.S. Census American Community Survey, cost-of-living figures from Sperling's BestPlaces, Zillow home values, and Federal Reserve mortgage rate data. The rankings weighed factors such as the proportion of residents aged 65 and older, poverty rates among seniors, retirement and Social Security income, housing expenses, monthly living costs, and overall livability equally. The data used in the report was available as of June 24, 2024.