Maureen Spranza marked her retirement with a party in August 2024. By December of 2025, the 60-year-old was back at work, “un-retiring” as rising costs made retirement unaffordable. She now holds three jobs.
Moving from celebration to working six days a week was difficult and disappointing, she said, and meant putting personal projects and creative pursuits on hold — like writing a book.
It was a tough but necessary call — and one that reflects a growing reality for retirees across the Bay Area and California. A recent study ranked California as the sixth-worst state to retire, trailing Mississippi, Alabama, New York, Massachusetts and New Jersey. California’s high cost of living drove the state’s poor showing, said Arthur Bretschneider, the CEO of CareScout, the company that did the study and which provides long-term care insurance and planning. As the share of the state’s population nearing retirement continues to rise, he says the findings underscore a growing problem.
“It’s getting harder and harder to age here,” Bretschneider said.
Already, about 22% of Bay Area retirees reported struggling to pay bills, according to a 2025 poll by the Bay Area News Group and the think tank Joint Venture Silicon Valley.
California’s high cost of living is no surprise. According to the U.S. Bureau of Economic Analysis, most goods and services cost more in the state than elsewhere. And, of particular concern for retirement planning, assisted living in California is among the most expensive in the nation, according to CareScout. The study also considered expenses such as groceries, housing, utilities and other services.
Many financial experts emphasized the role planning can play in shaping retirement outcomes. Kalvin Sid, owner and principal planner at Sid Financial Services in San Mateo, said he has seen many of his clients move to lower-cost states such as Texas, Florida and Nevada to retire. He said retirement in California can be more sustainable when people start planning earlier.
“My average client is 55, but retirement planning should start as soon as you get your first job,” he said. “I have clients in their 20s.”
It’s a common misconception that Social Security alone will comfortably support retirement, Sid said. Social Security was designed to be one of three “legs” of retirement income, he said, alongside pensions and personal savings. But with pensions largely phased out and the average monthly Social Security benefit just over $2,000, saving has become more critical than ever.
“The government cannot afford to care for us all,” Sid said. “We need to get in the habit of caring for our future selves.”
For some Californians, like Spranza, the financial pressure has become so intense that retirement isn’t sticking. Spranza, who took early disability retirement for migraines and returned to the workforce a year later, is living that reality. By the end of last year, her three jobs had her working as a music teacher at two schools, a community engagement coordinator for a music nonprofit and teaching at the San Ramon Academy of Music.
“I’m not surprised by California’s ranking. Everything is so expensive,” Spranza said.
While several factors influenced her decision to step out of retirement, Spranza said the biggest was the sharp increase in her Covered California health insurance premium. Her monthly cost jumped from $21 to $1,100 after President Donald Trump signed the “One Big Beautiful Bill” Act in July 2025, legislation that allowed enhanced Affordable Care Act premium tax credits to expire.
Spranza also said she realized she could not afford decades of student loan payments on a fixed income and support a daughter who is studying to become a veterinarian.
While she hopes to continue working for only the next two to three years, Spranza said she’s grateful for what it has afforded her.
“I had to get a new roof last week, and that was $20,000, plus a plumbing problem I discovered,” Spranza said. “Those are pretty big price tag items if you’re retired and on a fixed income.
Despite the financial strain, the picture is not all bleak. The survey also ranked states on quality-of-life factors such as access to parks and recreational centers and cultural opportunities for seniors — a category in which California ranked fourth in the nation.
Bretschneider, a San Francisco resident, said he understands why many people still choose to live in the state despite the high costs.
“I’ve been here my whole life, so I’m a fan; it’s an amazing place to live,” he said.
Spranza considered moving to Mexico, the Caribbean and even back to New Jersey, where she is originally from. But as she looks ahead to retirement once again, she said California still feels like home.
“I’ve been here for 35 years,” she said. “I don’t plan on leaving.”
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