This article looks at the 11 best places to retire in Los Angeles. You can skip our detailed discussion of how much you need to be rich at 65 and see the 5 Best Places to Retire in Los Angeles.
How Much You Need to Be ‘Rich’ at 65
If you wish to be considered amongst the wealthy at age 65 or older, you need a net worth of at least $3.2 million. That’s according to finance expert Geoffrey Schmidt, CPA, who used data from the 2019 Survey of Consumer Finances (SCF) for determining household net worth needed at age 65 or older to assess the various percentiles of wealth in the U.S. That’s almost double the amount ($1.8 million) workers believe they need to retire as per the 2024 401(k) Participant Study by The Charles Schwab Corporation (NYSE:SCHW).
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The Charles Schwab Corporation (NYSE:SCHW) is an American multinational financial services company offering banking, commercial banking, investing, and related services including consulting, and wealth management advisory services to retail and institutional clients. The company has an impressive market cap of $114.10 billion. It reported its second-quarter results in July 2024, beating its earnings expectations with a reported EPS of $0.73, exceeding the expected $0.717. Its Q2 net income was $1.3 billion, or $0.66 per diluted share. Excluding $175 million in transaction-related and restructuring costs, the adjusted net income for Schwab was $1.5 billion. The company’s profit dropped by 2% due to higher interest payments on client deposits and borrowings. The company’s Q2 earnings report, which missed new account targets and highlighted investor concerns, has led to a drop in its stock following the release of it’s second quarter results. At Insider Monkey, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Charles Schwab Corporation (NYSE:SCHW) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
While there are different measures of wealth, such as income and savings, net worth is considered the most accurate measure by many. Net worth is determined by calculating the total value of all assets minus the total value of all liabilities, reflecting the overall financial health and sustainability of any individual.
As per recent data from the Survey of Consumer Finances (SCF), an individual needs to have a net worth of $16.7 million to be among the top 1% for retirement wealth. To be in the top 5%, they need to have an average of $3.2 million, while the wealthiest 10% need to have $1.9 million. Surprising as this may sound, many of the wealthiest retirees today didn’t have trust funds or high-level management positions that got them where they are. The reality is that most wealthy retirees often had ordinary jobs like the rest, but what made them stand apart is that they saved aggressively, lived frugally, and invested wisely.
For those who wish to retire a millionaire, a national study of millionaires by Ramsey Solutions reveals that the top professions for millionaires are accountants, engineers, managers, teachers, and attorneys. While they are mostly graduated, most of them have studied at public universities and state schools. The survey further revealed a simple strategy that served as a key to financial success for 8 out of 10 millionaires: investing in their company’s 401 (k) plan. Many even invested outside of their company plans. Many millionaires also reveal that they spend cautiously and remain out of debt. Three-quarter of the millionaires even admit not having carried a credit card their entire lives.
Most importantly, they started saving very early on in their lives. For those who have aged and have no retirement savings, all isn’t lost. Simple strategies can help them get back on track and live a comfortable life during retirement. On the other hand, those with fat nest eggs can afford to live in exclusive cities and neighborhoods for the luxury lifestyle that they offer, world-class healthcare facilities, and access to upscale amenities. One state in the West many retirees dream of retiring to is California. Retiring to California may be a good idea for retirees considering they have bigger nest eggs. Within the state, one particularly enticing option for individuals is Los Angeles. Often referred to by its initials L.A., Los Angeles is a good place to retire owing to its vibrant multi-cultural neighborhood, historic museums, mild climate, modern amenities, and 75 miles of sunny coastline.
Retiring to this part of the country means having access to gorgeous mountains, beaches, and deserts. Another big plus is that since the city is a melting pot of cultures, residents can access various food, festivities, and people. There are abundant senior communities and retiree-friendly neighborhoods too.
On the downside, retiring to Los Angeles isn’t everyone’s cup of tea. After all, the cost of living in this city is more than 60% higher than the national average.
Pixabay/Public domain
Methodology
To compile a list of the best places to retire in Los Angeles, we combined retiree opinions with insights from leading websites. Each time a place was recommended by a source, it was awarded a point. The top LA locations were further ranked on livability, cost of living, and rent and home prices. Places have been ranked in an ascending order from the lowest to the highest scores.
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Here are the 11 best places to retire in Los Angeles:
11. Palos Verdes Estates
Insider Monkey Score: 13
IM Cost of Living Index: 158
Median Home Price: $3,800,000
Average Rent (1-bedroom): $2,726
Livability Score: 67
A magnificent coastal city in Los Angeles County, Palos Verdes Estates is the perfect upscale destination offering stunning coastal views, a strong sense of community, and a serene environment. Some beautiful spots to enjoy include Bluff Cove, Malaga Cave, and the Palos Verdes Peninsula. A suburb of Los Angeles, Palos Verdes Estates allows retirees to lead luxurious and active lifestyles. From its well-maintained parks to picturesque streets and scenic hiking trails, Palos Verdes Estates offers love at first sight. However, large estates and gated communities do come at a price. The median price of a home in the area is $3.8 million, whereas the cost of living in the area is 58% higher than the national average.
10. Beverly Hills
Insider Monkey Score: 15
IM Cost of Living Index: 160
Median Home Price: $2,200,000
Average Rent (1-bedroom): $3,278
Livability Score: 75
Next on our list of best places to retire in Los Angeles is the iconic and glamorous Beverly Hills. Home to many Hollywood stars, this city in Los Angeles County promises retirees luxury, comfort, and convenience. While it is true that living expenses are quite high, they match the world-class healthcare, upscale amenities, and beautiful weather that the city offers. From the upscale shopping street of Rodeo Drive and the historic Greystone Mansion and Park to Michelin-star restaurants and abundant cultural venues, there is so much to see and do here in the city. Retirees can find some of the best medical facilities and specialists in the country, all while enjoying access to other parts of Los Angeles thanks to the city’s central location.
9. La Cañada Flintridge
Insider Monkey Score: 17
IM Cost of Living Index: 161
Median Home Price: $2,800,000
Average Rent (1-bedroom): $2,361
Livability Score: 68
Sometimes referred to as only “La Cañada”, La Cañada Flintridge lies in the foothills of the Verdugo Mountains in Los Angeles County, California. Some of the most affluent families and celebrities call this city their home, owing to its promising blend of amenities, tranquility, and community atmosphere. This city is ideal for residents who wish for a more secluded lifestyle surrounded by natural beauty. Retirees can enjoy access to numerous outdoor activities and lead active lifestyles. There is even a 22-mile extensive trail system that hikers, mountain bikers, and dog walkers equally love. However, the most popular attraction here has got to be Descanso Gardens, a botanical garden with vibrant seasonal blooms such as camellias, roses, oaks, California native plants, and lilacs.
8. San Marino
Insider Monkey Score: 17
IM Cost of Living Index: 162
Median Home Price: $3,200,000
Average Rent (1-bedroom): $2,352
Livability Score: 72
Another city in Los Angeles County, San Marino is known for its beautiful tree-lined streets, meticulously landscaped gardens, and exclusive neighborhoods. This wealthy city is home to numerous recreational facilities, plentiful parks, as well as beautiful green spaces. The cost of living is 62% higher than the national average, whereas the median price of a home is around $3.2 million.
7. Manhattan Beach
Insider Monkey Score: 17
IM Cost of Living Index: 155
Median Home Price: $3,300,000
Average Rent (1-bedroom): $2,836
Livability Score: 73
Situated in southwestern Los Angeles County, Manhattan Beach is 7th on our list of best places to retire in Los Angeles. This relaxed South Bay community is a favorite for those who wish to relax on pristine sandy shores amidst an upscale atmosphere, excellent dining, and lots of outdoor living. The cost of living here is 55% higher than the national average, while the median price of a home is around $3.3 million.
6. Westlake Village
Insider Monkey Score: 21
IM Cost of Living Index: 155
Median Home Price: $2,000,000
Average Rent (1-bedroom): $2,466
Livability Score: 69
This unique, master-planned community called Westlake Village is situated in Los Angeles County, California. The lakeside community boasts a wide range of amenities, including golf courses, parks, and abundant outdoor spots. The city has twenty individual neighborhoods with active homeowners association that help promote and maintain them. The median price of a home in Westlake Village is $2 million while living expenses are 55% higher than the national average.
5. Rolling Hills Estates
Insider Monkey Score: 22
IM Cost of Living Index: 141
Median Home Price: $5,300,000
Average Rent (1-bedroom): $2,240
Livability Score: 72
Revered for being a tight-knit community, Rolling Hills Estates in Los Angeles County is ranked fifth on our list of best places to retire in Los Angeles. Retirees get to live amidst rolling hills, beautiful views, well-maintained parks, and abundant trails. The city’s proximity to the coast provides easy access to beaches and additional recreational opportunities. With its serene atmosphere, scenic beauty, and high quality of life, Rolling Hills Estates seems like the perfect place for retirees to settle down in their golden years.
4. Culver City
Insider Monkey Score: 24
IM Cost of Living Index: 164
Median Home Price: $1,600,000
Average Rent (1-bedroom): $2,740
Livability Score: 77
Home to MGM movie studios, National Public Radio West, Sony Pictures Entertainment, and the NFL Network, Culver City can be a splendid retirement-time choice for seniors who can afford it. This walkable city is home to a charming downtown, endless options for entertainment, and beautiful parks and spaces such as the Culver City Park and Baldwin Hills Scenic Overlook.
3. Los Feliz
Insider Monkey Score: 25
IM Cost of Living Index: 161
Median Home Price: $2,100,000
Average Rent (1-bedroom): $2,123
Livability Score: 75
Those looking to retire right in LA city can consider retiring in the popular neighborhood of Los Feliz, a relaxed hillside enclave perfect for seniors looking for a nice and quiet retirement time. Sitting at the base of one of the largest urban parks, Griffith Park, the city is beloved by retirees for hiking on its trails, stargazing at Griffith Observatory, and the many independent boutiques, cafes, and eateries.
2. Santa Monica
Insider Monkey Score: 25
IM Cost of Living Index: 137
Median Home Price: $1,700,000
Average Rent (1-bedroom): $3,400
Livability Score: 75
Santa Monica, a coastal city west of downtown LA, lies peacefully along the Pacific Ocean and is a treat for retirees. It is a charming mix of seaside living with a vibrant cityscape full of modern amenities, a pleasant climate, and a relaxed lifestyle. There’s so much to do here, all packed in an easy walkable 8.3 square miles area. The city’s well-designed layout and walkability are very convenient for seniors, while its excellent healthcare facilities, parks, and beachfronts make them all the more appealing for retirement.
1. Glendale
Insider Monkey Score: 29
IM Cost of Living Index: 155
Median Home Price: $1,200,000
Average Rent (1-bedroom): $2,354
Livability Score: 75
Based on our methodology, the best place to retire in Los Angeles is Glendale. Glendale lies in the San Fernando Valley and Verdugo Mountains regions of Los Angeles County. Retirees can choose to live either between bustling urban areas or quieter, tree-lined streets, depending on their lifestyle choices. The city offers a rich cultural heritage, its very own “Walk of Fame”, and a comparatively “affordable” cost of living that many other parts of LA. It’s also quite popular for its Middle-Eastern food, the bustling main street called Brand Boulevard, and the Glendale gem called Deukmejian Wilderness Park brimming with wildflowers and trails. The median price of a home in Glendale is $1.2 million, up 7.1% compared to last year.
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Disclosure: None. 11 Best Places to Retire in Los Angeles is originally published on Insider Monkey.