5 Things Retirees Shouldn’t Do With Their Money in San Francisco and 5 Other California Cities

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Brian DavisSun, October 12, 2025 at 10:19 PM GMT+2 3 min readSan Francisco comes with a far higher cost of living than most U.S. cities. Even excluding rent, the cost of living runs 42.3% higher than in Kansas City, Missouri, according to Numbeo. Restaurants cost 34.6% more, groceries cost 35.4% more and rent costs a dizzying 159% more.San Francisco is hardly alone as an outlandishly expensive city in California, either. “Similar costs apply in San Diego, Santa Barbara, Los Angeles, Palo Alto and San Jose — all are high-cost, high-pressure retirement spots,” said financial planner Adam Spiegelman of Spiegelman Wealth Management.Read More: Here’s the Minimum Salary Required To Be Considered Upper Class in CaliforniaFind Out: 8 Common Mistakes Retirees Make With Their Social Security ChecksSo what money mistakes should California retirees avoid at all costs?Also see the 25 cheapest cities to retire in California.With an average home price of $1,240,382, per Zillow, San Francisco homeowners might find themselves saddled with a huge capital gains tax bill. Even with the homeowners exclusion of the first $250,000 in capital gains, sellers might get a tax shock.Downsizing can come with other hidden costs too. That condo might look affordable compared with your current home, but remember that condo fees typically rise every year. That can pinch retirees living on a fixed income.Check Out: 5 Affordable Small Cities To Live In on the West CoastMost long-time homeowners struggle with the idea of renting, even for just a year. But it can save you tens of thousands, both on a home purchase and in avoiding losses from selling too soon.“Rent for a few months or a year,” Spiegelman said. “Get a feel for the local neighborhoods, the weather, the real costs of living there and only then commit.”Sure, you’re fit today, but that doesn’t mean you’ll be able to climb stairs or live independently 10 to 20 years from now.Hunt for your “forever home” while you’re still healthy and fit. Look for single-story living, with amenities within walking distance, and consider small upgrades like outfitting the shower with handlebars.Aging in place can save you plenty of money in California. The average cost of an assisted living facility runs $8,750 in San Jose per CareScout, compared with over $5,900 in Kansas City.With many major homeowners insurance carriers pulling out of California, premiums have skyrocketed. Melanie Musson, insurance expert at Clearsurance.com, noted that many California homeowners now underinsure their home — or go without insurance entirely.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,552.51 -182.60 (-2.71%)Dow 3045,479.60 -878.80 (-1.90%)Nasdaq22,204.43 -820.17 (-3.56%)Russell 20002,394.60 -74.26 (-3.01%)VIX21.66 +5.23 (+31.83%)Gold4,000.40 +27.80 (+0.70%)PortfolioSign in to access your portfolioSign inTop gainersPTGX Protagonist Therapeutics, Inc. 87.00 +19.96 (+29.77%)APLD Applied Digital Corporation 33.99 +4.70 (+16.05%)NAMS NewAmsterdam Pharma Company N.V. 37.05 +4.04 (+12.26%)FRMI Fermi Inc. 29.08 +2.31 (+8.63%)MP MP Materials Corp. 78.34 +6.05 (+8.37%)Top losersVG Venture Global, Inc. 9.45 -3.13 (-24.88%)DGNX Diginex Limited 24.93 -6.46 (-20.58%)CORT Corcept Therapeutics Incorporated 73.96 -14.40 (-16.30%)WRD WeRide Inc. 10.17 -1.80 (-15.04%)AMBA Ambarella, Inc. 72.88 -11.40 (-13.53%)Most activeNVDA NVIDIA Corporation 183.05 -9.46 (-4.91%)BBAI BigBear.ai Holdings, Inc. 7.22 -0.27 (-3.60%)BITF Bitfarms Ltd. 4.2000 +0.0300 (+0.72%)INTC Intel Corporation 36.33 -1.47 (-3.89%)PLUG Plug Power Inc. 3.4200 -0.3600 (-9.52%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersETH-USD Ethereum USD 4,159.79 +463.67 (+12.54%)NVX NOVONIX Limited 2.9400 +0.7750 (+35.80%)GLTR abrdn Physical Precious Metals Basket Shares ETF 174.05 +1.85 (+1.07%)BTC-USD Bitcoin USD 115,250.24 +4,616.26 (+4.17%)BNB-USD BNB USD 1,301.11 +173.03 (+15.34%)Top economic events