Should Retirees in Their 70s Upsize to High-Cost California?
A couple in their 70s weighs moving to California for family proximity despite higher costs and a larger mortgage.
Here's the real question: is being near your kids worth blowing up your retirement finances? A couple in their 70s is seriously considering leaving a low-cost, lower-tax Northwest state to relocate to California — and taking on a bigger mortgage to do it. That's a bold move at any age, but in your 70s, it's a decision that deserves serious scrutiny before you sign anything.
California is one of the most expensive states in the country. Higher property taxes, state income taxes, and sky-high home prices mean your monthly burn rate could jump dramatically compared to whatever you're paying now in the Pacific Northwest. Taking on a larger mortgage when most retirees are focused on shedding debt — not adding it — runs counter to conventional retirement wisdom.
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That said, the emotional math matters too. Proximity to family has real value. Studies consistently show social connection is a major driver of health and longevity in older adults. If your kids are your primary support system, being a flight away isn't the same as being a drive away. That's not nothing.
The tradeable angle here: run the hard numbers first. What does the mortgage payment look like against your fixed income? Does your Social Security, pension, or portfolio actually support a higher cost of living in a state that will also tax more of it? California taxes Social Security under certain income thresholds — unlike many lower-tax states — so your net income picture could shift more than you expect.
Bottom line — family is priceless, but a shaky retirement balance sheet creates stress that undermines the very quality of life you're chasing. Get a fee-only financial advisor to stress-test this before you list your current home. Continue reading at MarketWatch.com
