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In California, $1M in retirement savings was estimated to last ~12 yr in 2026, placing the state as the US’s third-most expensive for retirees.
That estimate improved from ~9 yr in the prior year, as annual retirement spending in California was put at ~$84K for 2026 versus ~$102K.
California’s listed yearly costs included housing at ~$24K, health care ~$8K, transportation ~$7K, utilities ~$6.5K, and groceries ~$5.6K for retiree living expenses statewide.
The broader takeaway: California’s everyday costs, from housing and groceries to gas and utilities, can draw down retirement savings quickly for retirees.
The estimate was based on national avg. spending for people 65+ in every state, using federal spending data and state cost comparisons.

After more than 30 years at Neasham Insurance Agency, I’ve seen how annuities can provide real peace of mind for retirees seeking certainty in their income. Annuities are unique insurance contracts designed to guarantee income streams—whether you’re looking for immediate payouts or prefer to defer until later. The choice between fixed, variable, or indexed annuities depends on your comfort with risk and growth expectations: fixed annuities offer a stable return, variable annuities move with the markets, and indexed annuities tie growth to a specific market index, offering a blend of protection and potential. It’s important to remember that not every annuity is right for every person—some come with higher fees, restricted growth, surrender charges, or withdrawal penalties, so comparing features carefully is key. For those who want to simplify retirement budgeting and reduce the worry of outliving savings, annuities can transform a portion of your portfolio into predictable income. With minimums starting as low as $1,000 and options available up to age 85, there’s a wide range to consider. As always, working with an experienced advisor helps ensure your annuity aligns with your retirement goals and financial needs.

After more than 30 years guiding clients at Neasham Insurance Agency, I’ve seen how annuities can be a valuable tool for retirement planning. Annuities are insurance contracts designed to provide guaranteed income, with options for immediate or deferred payouts. Depending on the type—fixed, variable, or indexed—your growth potential and risk exposure will vary. Fixed annuities guarantee a set return, variable annuities fluctuate with the market, and indexed annuities tie growth to a market index, offering a balance between security and potential. It’s important to remember that not every annuity suits every retiree; fees, surrender periods, and withdrawal penalties all play a role in what’s best for you. For those who prefer stability, annuities can help transform a portion of your savings into a reliable income stream, making retirement budgeting more predictable and easing concerns about outliving your assets. With options starting at $1,000 and extending up to age 85, it’s worth taking the time to match features and fees to your specific needs. My experience has shown that careful planning can make all the difference in building a retirement you can count on.

For those exploring ways to manage retirement distributions, here’s a QLAC strategy that might fit the bill. If a 72-year-old moves $210K into a Qualified Longevity Annuity Contract (QLAC) before year-end, next year’s required minimum distribution (RMD) drops by about $7,900, potentially lowering federal taxes by $1,700. That’s because the funds in a QLAC aren’t counted in the IRA balance for next year’s RMD calculation.

This approach is best suited to retirees who have surplus IRA assets, other liquid savings, and a family history of longevity—especially if a lower RMD helps in managing Medicare premium thresholds. Of course, there are tradeoffs: once the money is in a QLAC, it’s generally locked up until income begins (which can be deferred as late as age 85), and future payouts are taxable income.

Current long-term yields may make deferred income options more attractive than in the past, so it’s worth comparing lifetime payout guarantees, death benefit features, and income start dates. With over 30 years at Neasham Insurance Agency, I make it a point to help clients weigh these options carefully to align with their broader retirement goals.