That nagging question about retirement keeps many Long Beach residents up at night. Between the stunning coastal views and vibrant community, our city offers an incredible lifestyle—but it comes at a price. The typical retirement advice you find online rarely accounts for California’s unique cost of living, let alone the specific expenses of Long Beach.
“Will I have enough?” It’s the question I hear most often from locals who stop by our office. With housing costs that make national averages look like pocket change and healthcare expenses that continue to climb, retirement planning here requires a different approach.
This guide cuts through generic advice to give you real numbers and practical steps tailored specifically to Long Beach residents. Whether you’re in your 30s wondering if you’re behind or approaching retirement and fine-tuning your exit strategy, you’ll find answers to the questions keeping you awake.
How Do You Compare? Retirement Savings by Age
Let’s look at how your savings stack up against both national averages and what’s typically needed in Long Beach:
| Age Group | National Median Savings | Long Beach Adjusted Target |
|---|---|---|
| 30s | $45,000 | $70,000 |
| 40s | $93,000 | $140,000 |
| 50s | $160,000 | $240,000 |
| 60s | $182,000 | $275,000 |
The gap between these numbers might seem alarming. National statistics include areas where $300,000 buys a comfortable home and retirement. In Long Beach? That same amount might cover just a few years of expenses.
Many of our clients are surprised to learn they’re behind—not because they haven’t saved, but because California’s cost of living demands more aggressive saving. A client recently told me, “I thought I was doing great until I realized how much more I’ll need just for basic expenses here.”
If these numbers make you nervous, take a deep breath. Awareness is the first step toward improvement, and there’s still time to adjust your strategy.
The Real Cost of Retiring in Long Beach
Living in Long Beach during retirement comes with specific financial considerations:
Housing: Even if your mortgage is paid off, property taxes, insurance, and maintenance can run $10,000-15,000 annually for a modest home. Renters face even steeper challenges with the average 2-bedroom apartment costing around $2,400 monthly—that’s $28,800 per year before utilities.
Healthcare: Medicare doesn’t kick in until 65, creating a potential coverage gap for early retirees. Even with Medicare, expect to pay $6,000-8,000 annually for supplemental insurance, copays, and uncovered expenses. Long Beach’s healthcare costs typically run 20-25% above the national average.
Taxes: California doesn’t give retirees many breaks. Social Security benefits might be safe from state income tax, but other retirement income faces California’s high tax rates. Property tax increases are limited thanks to Prop 13, which helps long-time homeowners but means new buyers face much higher tax bills.
Daily Living: Groceries, utilities, and transportation in Long Beach cost about 30% more than the national average. A comfortable retirement here typically requires at least $70,000-90,000 annual income for a couple—significantly more than in many parts of the country.
One client, a retired teacher, shared: “I saved what all the national guidelines suggested, but didn’t account for how much more everything costs here. Working with a local advisor helped me adjust my budget and investment strategy to match Long Beach realities.”
Savings Milestones: How Much Should You Have Saved?
Financial experts often recommend having saved certain multiples of your annual salary by specific ages:
- By 30: 1× your salary
- By 40: 3× your salary
- By 50: 6× your salary
- By 60: 8× your salary
- By 67: 10× your salary
But in Long Beach, these targets often need adjustment. Let’s look at some examples:
Carlos (42) works in healthcare administration, earning $95,000. National guidelines suggest he should have about $285,000 saved. But for Long Beach, he should aim for closer to $380,000 to maintain his lifestyle in retirement.
Jennifer (55) is a small business owner making $120,000. Standard advice would suggest having $720,000 saved by now. For Long Beach retirement security, her target should be closer to $900,000.
These aren’t meant to discourage you but to provide realistic targets. Many of our clients find relief in having clear numbers to aim for, even if they’re currently behind.
Your Top Retirement Questions, Answered
Am I too far behind to catch up? No. While starting early is ideal, many successful retirees accelerate their savings in their 50s and 60s. Take advantage of catch-up contributions ($7,500 extra in 401(k)s and $1,000 extra in IRAs for those over 50), optimize your investment strategy, and consider working a year or two longer if needed.
What if health issues force early retirement? This is why emergency savings and disability insurance are crucial parts of retirement planning. We typically recommend Long Beach residents maintain 6-12 months of expenses in accessible savings, separate from retirement accounts, and review disability coverage regularly.
How do I balance paying off debt and saving for retirement? Focus first on high-interest debt (credit cards, personal loans), then build a balanced approach. Even while paying down moderate-interest debt like mortgages, contribute enough to get any employer match in your retirement plan—it’s free money you shouldn’t leave on the table.
Will Social Security be enough? For most Long Beach residents, definitely not. The average Social Security benefit is around $1,800 monthly—barely enough to cover rent on a 1-bedroom apartment here. Social Security typically replaces only about 40% of pre-retirement income, while most retirees need 70-80% to maintain their lifestyle.
How can I make up for lost time? Maximize tax-advantaged accounts first, then consider taxable investments. Many clients find success by reducing current expenses to increase savings, delaying retirement by 2-3 years, considering part-time work in early retirement, or strategically downsizing their home.
Common Retirement Savings Pitfalls for Long Beach Residents
Underestimating housing costs: Many assume their housing expenses will decrease in retirement. In Long Beach, housing costs often increase with age as maintenance, property taxes, and potential modifications to age-in-place add up.
Forgetting about inflation: At just 3% inflation, costs double every 24 years. Healthcare inflation often exceeds this rate, making medical expenses a growing concern for retirees.
Keeping too much in cash: While emergency funds are essential, keeping too much in low-yield accounts means inflation steadily erodes your purchasing power.
Helping adult children at the expense of retirement: We see this frequently—parents jeopardizing their retirement to help with adult children’s expenses. Remember: your children can borrow for education or housing, but you can’t borrow for retirement.
Ignoring tax planning: California’s high tax rates make tax-efficient withdrawal strategies especially important for Long Beach retirees. Without proper planning, taxes can consume a significant portion of your retirement income.
Planning Your Path: What Long Beach Residents Should Do Now
No matter your age or savings level, these steps can strengthen your retirement outlook:
- Increase your savings rate by just 1-2% annually. This small change compounds dramatically over time, and you’ll barely notice the difference in your paycheck.
- Review your investment allocation. Many people have investments that are either too aggressive or too conservative for their age and goals. A properly diversified portfolio should align with your time horizon and risk tolerance.
- Maximize tax-advantaged accounts. Contribute at least enough to get any employer match in your 401(k), and consider Roth options for tax-free growth if you qualify.
- Create a Social Security strategy. For many couples, the difference between optimal and sub-optimal claiming strategies can exceed $100,000 in lifetime benefits.
- Consider long-term care options. With nursing home costs in Long Beach averaging over $100,000 annually, having a plan for potential long-term care needs is essential.
- Update your estate plan. California’s probate process is notoriously expensive and time-consuming. Proper estate planning can save your heirs significant money and stress.
When to Get Help: Local Expertise Makes a Difference
Financial planning isn’t just about numbers—it’s about understanding how those numbers apply to your specific situation and location. Working with a local financial advisor in Long Beach can make a substantial difference in your retirement outcomes.
At Randall Wealth Management Group, we’ve helped Long Beach residents plan for retirement for over 35 years. Our team understands the local housing market, California tax implications, and regional healthcare costs that national calculators and generic advice often miss.
Our clients appreciate having a financial partner who lives and works in the same community, facing the same economic realities they do. Whether you’re wondering if you’re on track, need help catching up, or want to optimize what you’ve already built, starting with a personalized retirement assessment can provide clarity and direction.
Your Retirement Isn’t a Guessing Game
Understanding where you stand compared to both national averages and Long Beach-specific benchmarks gives you the power to make informed decisions. Whether you’re ahead of the curve or need to play catch-up, having clear targets makes the path forward much easier to navigate.
The most important step is the one you take today. Even small adjustments to your savings rate, investment strategy, or retirement timeline can yield significant results over time. And remember—you don’t have to figure it all out alone.
For a personalized assessment of your retirement readiness, contact our team at (562) 552-3367 to schedule a complimentary consultation. We’re here to help you build a retirement plan that works specifically for your life in Long Beach.
