Can a monthly budget of $2,500 fund a comfortable retirement anywhere in California? The answer is yes, according to data from an in-house GOBankingRates study.
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After referencing several media platforms, including the Farmer’s Almanac, to source U.S. cities with the best weather, we calculated the total cost of living for homeowners (using the average mortgage and average expenditure costs) and renters (the average rent cost plus average expenditure costs) and pulled five California cities from this list where retirement costs with Social Security benefits ($2,005 per month) are $2,500 or less monthly for homeowners and renters.
Would you spend your retirement in any of these five Northern and Southern California cities?
1. Redding
Population 65+ (%): 19.5%
Livability: 75
Total monthly cost of living for a homeowner with Social Security: $1,935
Total monthly cost of living for a renter with Social Security: $1,356
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2. Sacramento
Population 65+ (%): 14.1%
Livability: 73
Total monthly cost of living for a homeowner with Social Security: $2,360
Total monthly cost of living for a renter with Social Security: $1,631
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3. Fresno
Population 65+ (%): 12.1%
Livability: 63
Total monthly cost of living for a homeowner with Social Security: $1,756
Total monthly cost of living for a renter with Social Security: $1,366
4. Stockton
Population 65+ (%): 13%
Livability: 59
Total monthly cost of living for a homeowner with Social Security: $2,107
Total monthly cost of living for a renter with Social Security: $1,579
5. Bakersfield
Population 65+ (%): 10.8%
Livability: 57
Total monthly cost of living for a homeowner with Social Security: $1,747
Total monthly cost of living for a renter with Social Security: $1,425
View more original studies and surveys in the GOBankingRates original research center.
Methodology: GOBankingRates found cities with the best weather sourced from 247WallSt.com’s U.S. Cities with Absolute Best Weather, FarmersAlmanac.com’s The 10 Best U.S. Weather Cities, Cutter.com’s U.S. Cities with Best Weather, RealEstate.USNews.com’s Best Places to Live in the U.S. for the Weather, and Grillio.com’s Top U.S. Cities for Weather. Population data is from the U.S. Census American Community Survey. The cost-of-living indexes were sourced from Sperling’s BestPlaces and the Bureau of Labor Statistics Consumer Expenditure Survey for retired consumer units. The average rental cost was sourced from Zillow Observed Value Index. The average home value was sourced from Zillow Home Value Index for May 2025. Using the average home value, assuming a 10% down payment, and using the most recent national average 30-year fixed mortgage rate, as sourced from the Federal Reserve Economic Data, the average mortgage was calculated. Using the average mortgage and average expenditure costs, the average cost of living for homeowners was calculated. Using the average rental cost and the average expenditure costs, the total cost of living for renters was calculated. The average Social Security income for one person was sourced from the Social Security Administration’s Monthly Statistical Snapshot and subtracted from the monthly cost of living to find the costs after Social Security. The livability index was sourced from AreaVibes. All data was collected on and is up to date as of July 14, 2025.
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This article originally appeared on GOBankingRates.com: 5 California Cities With Great Weather Where You Can Retire on $2,500 a Month
