‘Making Money’ host Charles Payne discusses 401(k) savings with Walser Wealth Management president Rebecca Walser and what it says about Americans’ retirement.
Retirees often take the cost of living into account when it comes to where they live after leaving the workforce.
Some retirement hot spots are more costly than others, according to a GOBankingRates analysis that identified the 30 U.S. cities that stood out as the priciest “retirement towns.”
For its ranking, the company looked at cities where at least 25,000 people lived and 25% or more of their population were 65 or older and calculated the expensiveness based on costs of homeownership, renting and living essentials.
The cities that GOBankingRates included in the top 10 are located across four states. More than half of those locales are in California.
Saratoga, California
Saratoga, California, was ranked as the most expensive place for retirees, according to GOBankingRates. (MattGush / Getty Images)
Saratoga, which GOBankingRates found to be the priciest place for retirees, is located within the Bay Area. Living there costs $282,625 a year for a homeowner, according to the report.
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Rancho Palos Verdes, California
The cost of living for a homeowner in Rancho Palos Verdes was pegged at $144,381 per year, the report found. Approximately 26% of the Southern California city’s residents are at least 65 years old.
Walnut Creek, California
Civic Park in Walnut Creek, California, on June 10, 2025. (Smith Collection/Gado/Getty Images / Getty Images)
With homeowners facing a $144,381 annual cost of living, Walnut Creek ranked No. 3 among GOBankingRates’ “most expensive retirement towns.” Retirees spend $5,551 on groceries there on average, according to the report.
Cerritos, California
Cerritos, a California city not far from Los Angeles, ranked No. 4, with GoBankingRates pegging the annual cost of living for a homeowner at $91,644 a year.
Palm Springs, California
The Vista Las Palmas neighborhood in Palm Springs, California. (Myung J. Chun / Los Angeles Times via Getty Images / Getty Images)
Palm Springs has an annual cost of living of $86,550, according to GOBankingRates. Homes there are worth $1.02 million on average, the report said.
Scottsdale, Arizona
The cost of living for a homeowner in Scottsdale is $81,525 per year, the report said. The city, which averages 314 sunny days, is “located in the beautiful Sonoran Desert at the foot of the scenic McDowell Mountains,” according to the city government’s website.
La Quinta, California
An aerial view of homes and a golf course in La Quinta, California. (Mario Tama/Getty Images / Getty Images)
In La Quinta, people over the age of 65 make up nearly a third of its population. Its $71,613 annual cost of living put it at No. 7 on GOBankingRates’ list of priciest retirement towns.
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Gloucester, Massachusetts
Retirees in this city, considered America’s oldest seaport and located about 40 miles northeast of Boston, can expect living there to cost $71,334 annually, with groceries tending to cost $5,417 and healthcare averaging $7,029, per GOBankingRates.
Palm Beach Gardens, Florida
A neighborhood in Palm Beach Gardens, Florida. (felixmizioznikov / Getty Images)
People 65 and older account for 31% of Palm Beach Gardens’ residents. The report found the cost of living for a homeowner in the city to be $70,601 and homes to be worth an average of $759,350. Palm Beach Gardens neighbors other cities like Jupiter and West Palm Beach.
Barnstable Town, Massachusetts
Barnstable Town is part of Massachusetts’ iconic Cape Cod. For retirees, living in Barnstable would cost $68,453 a year, according to GoBankingRates.
In March, a study released by Fidelity Investments found retirement was “going as planned” for 72% of recent retirees, with a similar share also indicating they felt their retirement planning set them up sufficiently money-wise for their golden years.
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At the same time, many said their savings had taken a hit from the increasing cost of living.
Over two-thirds of retirees reported their retirement was “more enjoyable than they expected,” according to the study.
