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California has long had a reputation for being a slice of American paradise because of its sunny skies, diverse geography and stunning scenery. People flock there from all over the country — including retirement-age individuals who helped make it the most populous state by a wide margin. But that paradise has run into hard times lately, and many retirees are looking elsewhere to settle down.
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Much of this has to do with finances. Not only is California an expensive state to live in, but it’s also at increasing risk of natural disasters that are both dangerous and costly. A recent example involved the coastal city of Rancho Palos Verdes, which got hit with massive landslides that led to power outages and threatened dozens of expensive homes.
The landslides were the result of a couple years of heavy rains partly caused by the impact of climate change, according to experts interviewed by NBC News. In case you haven’t heard of Rancho Palos Verdes, it ranks as the richest retirement town in the United States, according to a GOBankingRates study. Now many of those retirees face the prospect of losing their homes to extreme weather conditions.
That’s just one of the financial reasons you might not want to retire in the Golden State and 10 other states.
Extreme Weather
Even though California has more than its share of natural disasters, it’s far from the riskiest state in the country when it comes to extreme weather. According to a Climate Change Risk Index compiled by SafeHome.org, these are the five states most at risk of severe weather (ranked in order):
- Florida
- South Carolina
- Louisiana
- North Carolina
- Mississippi
California ranked 10th in the index.
Severe weather events such as hurricanes, tornadoes, floods, droughts and wildfires are especially impactful for retirees. They are more vulnerable to physical harm, and they also might not have the financial resources to overcome the loss of their homes and property.
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High Home Prices
This is a particular problem in California, where the median home sale price was 784,989 as of July 31, according to Zillow. That’s more than double the national median of $412,300, per the St. Louis Fed. Other states with steep home prices include Hawaii ($858,569), Massachusetts ($635,183) and Washington ($600,843).
Expensive Living Costs
Another reason you might want to shy away from retiring in some states is because they are expensive to live in. California certainly qualifies because it ranks as one of the priciest states in the country, according to a GOBankingRates study that ranked states from best to worst as places to retire.
5. New York
- Cost-of-Living Index: 123.1
- Annual Cost-of-Living Expenditures: $81,386
4. Alaska
- Cost of Living Index: 125.1
- State Annual Cost of Living Expenditures: $86,370
3. Massachusetts
- Cost-of-Living Index: 144
- Annual Cost-of-Living Expenditures: $96,505
2. California
- Cost-of-Living Index: 145
- Annual Cost-of-Living Expenditures: $91,905
1. Hawaii
- Cost-of-Living Index: 186.2
- Annual Cost-of-Living Expenditures: $94,814
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This article originally appeared on GOBankingRates.com: 3 Financial Reasons Not To Retire in California and 10 Other States
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