By Elisabeth Dawson
Living in San Diego is a dream come true for many—mild weather, vibrant culture, beautiful coastlines, and the ability to enjoy life outdoors all year long. But that same dream lifestyle comes with some unique financial realities. As someone who has spent over two decades helping people navigate their retirement planning here in Southern California, I can tell you: the traditional one-size-fits-all retirement plan simply doesn’t cut it in San Diego.
People often ask me why planning for retirement feels so different here compared to other parts of the country. The answer is simple: it is different. The cost of living, the housing market, taxes, longevity expectations, and healthcare needs all converge in a way that requires a more thoughtful, personalized approach.
Let’s take a closer look at what makes retirement planning in San Diego uniquely complex—and why a tailored strategy is so essential.
The High Cost of Living in Paradise
San Diego is regularly ranked as one of the most expensive cities in the United States. While we enjoy stunning coastal views, access to world-class dining and entertainment, and countless lifestyle amenities, we also pay a premium for them.
The cost of everyday essentials—groceries, transportation, utilities, and housing—can add up quickly. And as we enter retirement, the money that once went toward saving often shifts toward maintaining our lifestyle. Without proper planning, that shift can feel like a jolt.
That’s why I believe it’s important for individuals living in high-cost cities like San Diego to understand how their local expenses can impact the longevity of their retirement income. Retirement isn’t just about how much you’ve saved—it’s about how far your money will go where you choose to live.
The San Diego Housing Market: A Double-Edged Sword
If you own a home in San Diego, chances are it has appreciated significantly over the years. That’s wonderful news for your net worth—but it also brings unique challenges when it comes to property taxes, liquidity, and housing decisions in retirement.
Some people find themselves in the “house rich, cash flow poor” category. Others are exploring options like downsizing or relocating, which can involve complex financial and emotional decisions. It’s not just about selling or staying; it’s about evaluating how your home fits into your overall retirement vision.
I’ve had countless conversations with individuals who are unsure how their real estate fits into their long-term picture. These discussions are never just about numbers—they’re about identity, comfort, family, and legacy. That’s why these conversations deserve thoughtful, personalized attention.
Taxes in California: What to Keep in Mind
California has one of the highest state income tax rates in the nation. For San Diego residents entering retirement, that’s an important consideration—especially when deciding where to withdraw funds from or how to structure income streams.
While I don’t give tax advice, I often see that many people are surprised by how their income in retirement can still be subject to significant taxation. This includes distributions from retirement accounts, pensions, and even Social Security in some cases.
Understanding how your financial choices may interact with state and federal tax rules is key. A comprehensive strategy that takes your tax environment into account can make a meaningful difference in how you experience retirement—particularly here in California.
Longevity: San Diego Residents Are Living Longer
There’s something to be said about the Southern California lifestyle—it seems to promote longevity! With an emphasis on wellness, access to healthy food, and a culture that supports active living, many San Diegans enjoy long and vibrant retirements.
That’s something to celebrate, but it also introduces an important planning reality: your money may need to last longer than you originally anticipated. A retirement that spans 25 or even 30 years is no longer unusual. In fact, it’s becoming more common.
Living longer means we need to think differently about income sustainability. It means reevaluating expectations, rethinking withdrawal strategies, and being mindful of how inflation and healthcare costs may evolve over the decades.
Healthcare Costs: Often Overlooked, But Critically Important
One of the most underestimated aspects of retirement planning is healthcare. And here in San Diego, with its top-tier medical facilities and specialists, access to quality care is a major advantage—but it comes at a cost.
Healthcare expenses in retirement can include everything from Medicare premiums to out-of-pocket costs, long-term care needs, prescriptions, and even specialized treatment. While San Diego offers incredible resources, those resources require planning to access them comfortably.
I’ve met many people who were confident about their retirement until a health event changed everything. It’s not just about having insurance—it’s about being prepared for how your healthcare needs might evolve and what that could mean for your financial picture.
Why the Traditional Retirement Strategy Falls Short
When you add all these factors together—cost of living, real estate, taxes, longevity, and healthcare—it becomes clear why San Diego residents can’t afford to rely on a generic retirement plan.
What’s needed is a personalized strategy—one that reflects your specific lifestyle, goals, and realities. And perhaps most importantly, one that allows you to live with peace of mind, knowing that your finances are working in harmony with the life you want to lead.
My mission has always been to help people discover that kind of peace. It’s why I created the Wealth by Design™ process: to give individuals and families a way to align their financial choices with their dreams and aspirations.
Creating a Retirement Strategy That Reflects Your Life
Retirement isn’t something you just arrive at. It’s something you build. And here in San Diego, building a successful retirement means acknowledging that your journey is unique.
Your strategy should reflect who you are, where you live, what you care about, and what kind of life you want to enjoy—not just now, but for years to come.
I don’t believe in generic plans or cookie-cutter advice. I believe in personal conversations, thoughtful questions, and building a structure that supports the life you’ve worked so hard to create.
If you live in San Diego and you’re thinking about your retirement—whether it’s five years away or already here—I want you to know that you’re not alone. There’s a way to plan that puts your values first and makes room for the life you’ve always imagined.
Let’s start that conversation. Let’s design it together.
Schedule a complimentary consultation with our team of retirement planning experts at COPIA Wealth Management & Insurance Services. Call us at 619.640.2622 to get started!
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Investment advice offered through Copia Wealth Management Advisors, Inc.Copia Wealth Management Advisors, Inc. is a registered investment advisor.
