Overview

A suburb of Los Angeles, Cerritos, has emerged as one of the most expensive retirement communities in America. With a significant portion of its population being seniors, the cost of living in Cerritos exceeds the already high state average for retirement.

As retirement-age individuals face increasing financial demands, many are finding that their savings may not be sufficient to maintain a comfortable lifestyle in this affluent area.

Key details

  • The median net worth for individuals aged 65 to 74 in 2022 was over $1.7 million, reflecting a 27% increase since 2019.
  • A 2024 survey revealed that one-third of Gen Xers believe they will need more retirement income than their current earnings.
  • 16% of Gen Xers reported saving less than their current income for retirement.
  • 46% of Americans across all generations feel unprepared for the financial demands of retirement.
  • California ranks among the top three most expensive states for retirement, with an average annual requirement of $86,945.
  • In Cerritos, the estimated annual cost of living comfortably is $92,771, exceeding California's average by $5,826.
  • The average home value in Cerritos is $1,092,307, compared to the national average of $356,585.
  • Average annual rent for a married couple in Cerritos is $29,401, significantly higher than the national average of $23,580.
  • Annual grocery expenses in Cerritos are around $12,842, double the national average of $6,053.
  • Healthcare costs in Cerritos average $8,775 per year, compared to the national average of $6,159.
  • The median household income in Cerritos is $124,460, which is 35% higher than the California average.
  • Long-term care costs average $48,816 per year, adding to the financial considerations for retirees.

Context

As the cost of living continues to rise, retirees in Cerritos must carefully evaluate their financial readiness. The suburb's high expenses may necessitate substantial savings to ensure a comfortable retirement.

What happens next

Potential retirees and current residents may need to reassess their financial strategies and consider whether Cerritos aligns with their retirement goals or if alternative locations might offer more affordable living conditions.

What we don't know yet

Details regarding the specific financial preparedness of current residents and potential retirees in Cerritos, as well as additional factors influencing the cost of living, remain unconfirmed.