Want To Move To San Diego In Retirement? Here's What You Need To Know
San Diego is a dream retirement destination, and for good reason. Living in SD, you have easy access to beautiful beaches and other gorgeous natural areas, as well as amazing food, a vibrant arts and culture scene, and much more. However, to experience all San Diego has to offer, you’ll need plenty of savings.
Here’s what you need to know about what it takes to successfully, sustainably retire in San Diego, California, including expert tips from financial advisor and SD native Greg Davis.
Problem: An IRA and Social Security May Not Be Enough
If you’re currently planning for retirement, your biggest question is probably, “Will I be able to afford this?” Sadly, federal sources of income like IRAs and social security don’t always give that question an affirmative answer; more Americans are finding that their federally-issued funds don’t provide enough to live on throughout retirement. Cash flow during retirement can be especially tricky when you’re living in a high-cost area like San Diego.
However, it’s entirely possible to get enough money to retire comfortably in San Diego; it just takes some planning and strategizing. Financial advisor Greg Davis says that one of the keys to successfully retiring in SD is “understanding that retirement income and passive income and passive income are both critical; no one wants to outlive their money, they want their money to outlive them.
Solution: Passive Income
Based on Davis’ insight, it’s clear that retirees who want to live in San Diego may need more than just federal funds to live well. Davis recommends bridging the gap with a passive income strain, which can supplement your IRA and social security payouts and help you keep earning money after retirement.
Expert input is key here. Davis says, “Spend time with a financial advisor and look at long-term historical yield averages and strains before making an investment.” This approach is measured, non-impulsive, and backed by trustworthy advice.
Davis has some additional insight into what passive income might look like for retirees in the 2020s. He says, “Many of my clients have found it beneficial to include higher-yielding private credit investments in their portfolios, blending those with treasury exposure to get a higher-average yield. This approach can diversify a senior’s portfolio and bring in more returns after cashing out retirement savings.
In addition, stock market investments can have a place in a retiree’s portfolio. However, Davis recommends that retired investors keep in mind that these investments can have drawdowns of as high as 30-50%. On the other hand, private credit investments have much less volatility, and they offer a unique level of protection: equity investors will lose money first in the event of a devaluation.
As you look for ways to make retirement in San Diego more affordable, keep these tips in mind. Look for expert help from a financial advisor who understands the complexities of retiring in the 2020s, and don’t be afraid to ask any and all money questions that come to mind.
Problem: The Cost of Living in San Diego Is Very High
San Diego is one of the most sought-after cities in the US. The coastal location, outdoor-focused lifestyle, and more make it an incredibly popular place to visit or stay. However, all of that demand has led to inflated costs, both for housing and for everyday needs.
The cost of living in San Diego is currently over 100% of the national average, with medium rent sitting at over $3,000 per month. Because of the high costs, retirees need to be prepared to spend their money wisely to make it last, whether they’re aging in place or looking at living centers that offer memory care and other health aid. At first, living sustainably in San Diego can seem impossible, but that’s hardly the case. With careful planning and some professional input, you can make it work.
Solution: Live Wisely Throughout Retirement
To make your money last throughout your golden years, you’ll need to be strategic. Davis offers a few practical pieces of advice to help you get there.
First, he recommends always having a professional in your corner when making purchasing or investment decisions. This added support can help you avoid overspending and keep you realistic about your real budget and its limitations.
In addition, Davis says that historically, prices for necessities like food correlate with housing prices. In other words, living in a slightly less desirable neighborhood (away from the beach, he specifies), can save you money on more than just housing. The neighborhoods with the easiest access to the beach cost the most to live in in general, so the farther you’re willing to go from the ocean, the more affordable your life will be.
Lifestyle Logistics: What Retiring in San Diego, California Actually Looks Like
San Diego’s appeal goes far beyond sunshine. If you’re planning to retire in San Diego, California, it’s important to get clear on the day-to-day practicalities—like how much you’ll spend on housing, which areas align with your lifestyle, and what services are available as your needs evolve.
What Retirees Pay for Housing and Care in San Diego, CA
Planning where you’ll live is one of the most important decisions for a successful San Diego retirement. Here’s what to expect in terms of average costs:
- Condos: A one- or two-bedroom condo in San Diego typically runs between $550,000 and $700,000, depending on proximity to the coast and building amenities.
- Single-family homes and duplexes: Detached homes often start near $1.04 million, while duplexes (though less common) have an average cost of $600,000.
- Assisted living: These communities cost an average of $5,900/month, offering services like meals, housekeeping, and personal care.
- Memory care: Specialized facilities for dementia-related needs typically start at around $5,000 to $8,000 per month and increase based on amenities and care level.
- Hospice care: Costs range from $3,000 to $6,000/month for in-home or facility-based care, though some costs may be covered by Medicare depending on eligibility.
Which Neighborhoods in San Diego Fit Your Retirement Style?
Your ideal retirement in San Diego will depend on the neighborhood you choose. Fortunately, San Diego has a wide range of options:
- Walkability & culture: North Park and Hillcrest offer accessible streets, dining, and healthcare, making them ideal for retirees who prefer to walk.
- Proximity to the beach: Pacific Beach and Ocean Beach deliver coastal living and strong community vibes, though prices are higher and parking is limited.
- Quiet & spacious: Rancho Bernardo and Poway appeal to retirees seeking tranquility and space, often with golf-cart friendly zones and senior housing options.
- Transportation-friendly: Mission Valley and Downtown provide the easiest access to trolleys, buses, and Amtrak stations—great for car-free living or frequent travelers.
Utility Costs and Everyday Essentials in San Diego, CA
San Diego is known for its sunshine, but it’s also one of the priciest metro areas when it comes to utilities and services. Here’s are some quick averages to consider when you retire in San Diego, California:
- Electricity: Among the most expensive in the country, with average rates near $0.39 per kWh as of 2025.
- Water: Usage-based billing varies by neighborhood, but monthly water bills for retirees tend to fall between $80 and $150.
- Gasoline: Gas prices hover around $5.00/gallon, often higher in coastal or high-traffic areas.
- Trash and recycling: In the City of San Diego, these services are covered by property taxes for homeowners; elsewhere, private haulers may charge $30–$50/month.
Healthcare and Hospital Access in San Diego, CA
San Diego offers excellent medical care, and many hospitals have strong programs for older adults. If you’re moving for retirement in San Diego, it’s worth knowing where the top senior-focused care is available:
- UC San Diego Health – Hillcrest & La Jolla: Home to geriatric medicine specialists, memory disorder treatment, and advanced cardiovascular care.
- Scripps Memorial Hospital: Offers robust orthopedics and rehabilitation programs tailored for aging adults.
- Sharp Grossmont and Sharp Coronado: Well-regarded for senior-focused behavioral health and skilled nursing services.
Getting Around in Retirement
San Diego’s public transit system and walkable hubs can make aging in place easier:
- Trolley system (MTS): Connects downtown with Mission Valley, La Mesa, and beyond—ideal for retirees without a car.
- Coaster & Amtrak: Great for day trips along the coast or up to Los Angeles.
- Airport: San Diego International is only 10–15 minutes from central neighborhoods like Hillcrest and Mission Hills.
- Golf-cart access: Some senior communities in Rancho Bernardo, La Jolla, and Coronado allow or even encourage golf-cart travel for local errands and social visits.
Know the Property Tax Rules
California’s tax laws can benefit long-time residents, but it’s important to understand how they apply to your San Diego retirement:
- Proposition 13 keeps property taxes at roughly 1% of assessed value, with only minimal increases each year.
- Proposition 19 allows some seniors (age 55 and older) to transfer their existing property tax base to a new home in California, which can help limit taxes after downsizing or relocating.
Retirement in San Diego: It’s Achievable With the Right Support
Retiring in San Diego can seem tough to achieve, but you can do it if you plan well and get expert input on your budget and decisions. Working with a professional financial advising firm like Heritage Wealth Management can help you make sure you cover all your bases and create an airtight retirement plan.
Reach out today to learn more about HWMI’s services.
FAQs About Retiring in San Diego, California
What types of senior discounts are available for retirees in San Diego?
Many local businesses offer discounts for individuals over 60, including grocery stores, movie theaters, museums, and public transportation. It’s also worth asking about senior rates at gyms, golf courses, and cultural venues.
Is San Diego a good place to retire without a car?
Yes, if you choose the right neighborhood when you retire in San Diego, California. Areas like Mission Valley, Downtown, and Hillcrest have walkable layouts and strong access to public transit, which makes them ideal for retirees who prefer not to drive.
Are there community colleges or programs in San Diego that offer classes for seniors?
Yes. Programs like the San Diego Continuing Education Emeritus Program offer low-cost or free classes for retirees interested in lifelong learning, covering a range of topics from computer skills to art and fitness.
Can out-of-state retirees qualify for California’s property tax benefits?
Retirees moving from another state won’t bring California’s Prop 13 protections with them, but if they’re 55 or older, they may be eligible for tax base transfers under Prop 19, depending on the timing of their San Diego retirement and the location of their home sale.
Does San Diego offer age-in-place support services for retirees living at home?
Yes, the City of San Diego and local nonprofits offer various support services, including transportation assistance, home-delivered meals, and in-home caregiver referrals, through programs designed to help older adults maintain their independence.
