5. Palm Springs, California
Palm Springs, which ranked seventh on last year’s list of most expensive retirement towns, is a city of 45,218 in the Sonoran Desert of southern California, known for its hot springs, stylish hotels, golf courses and spas. It’s also noted for its many fine examples of midcentury-modern architecture. Its core shopping district along Palm Canyon Drive features vintage boutiques, interior design shops and restaurants. The surrounding Coachella Valley offers hiking, biking and horseback riding trails.
• % of population 65+: 34%
• Avg. home value: $1,021,141
• Avg. cost of groceries (annual): $4,961
• Avg. cost of healthcare (annual): $6,926
• Homeowner cost of living (annual): $86,550
4. Cerritos, California
Cerritos, which ranked sixth on last year’s list of most expensive retirement towns, is a city of 46,797 in Los Angeles County. It is known for its sizeable Filipino, Korean, Indian, Chinese and Taiwanese populations, and for high-quality amenities, including a renowned library and performing arts center.
• % of population 65+: 25%
• Avg. home value: $1,086,360
• Avg. cost of groceries (annual): $5,129
• Avg. cost of healthcare (annual): $6,878
• Homeowner cost of living (annual): $91,644
3. Walnut Creek, California
Walnut Creek, which ranked as the second-most expensive retirement town last year, is a city of 69,152 in Contra Costa County, located in the East Bay region of the San Francisco Bay Area, about 16 miles east of the city of Oakland. It is known for its vibrant downtown area, upscale retail and dining scene, and its proximity to natural attractions like Mount Diablo State Park.
• % of population 65+: 29%
• Avg. home value: $1,437,769
• Avg. cost of groceries (annual): $5,551
• Avg. cost of healthcare (annual): $9,607
• Homeowner cost of living (annual): $115,206
2. Rancho Palos Verdes, California
Rancho Palos Verdes fell from the most expensive city on last year’s list to the second spot in 2025. The coastal city of 39,980 in southern Los Angeles County is known for its nature preserve trails, its school district, as well as its high property values.
• % of population 65+: 26%
• Avg. home value: $1,928,908
• Avg. cost of groceries (annual): $5,452
• Avg. cost of healthcare (annual): $7,156
• Homeowner cost of living (annual): $144,381
1. Saratoga, California
The most expensive retirement town in the U.S. in 2025 is Saratoga, California, a city of 29,607 in Santa Clara County. Located in Silicon Valley, in the southern Bay Area, Saratoga is known for its wineries, restaurants, and historic landmarks like Villa Montalvo, Mountain Winery, and Hakone Gardens. Saratoga is more than just a beautiful place to live—it’s a lifestyle. This small city is also known for its top-rated schools, safe neighborhoods, and proximity to Silicon Valley. These factors create high demand—and prices.
• % of population 65+: 26%
• Avg. home value: $4,118,931
• Avg. cost of groceries (annual): $6,165
• Avg. cost of healthcare (annual): $8,544
• Homeowner cost of living (annual): $282,625
See the full GOBankingRates “30 Most Expensive Retirement Towns in America” rankings here.
SEE ALSO:
• 10 Most Expensive U.S. Retirement Communities
• 10 Cheapest and 10 Most Expensive States to Retire Early
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
