Can You Still Afford to Retire in Orange County?

Is the dream of retiring right here in Orange County now just for the super-rich? When you hear that the average couple needs an estimated $1.5 million just to cover basic living expenses—not including travel, hobbies, or spoiling the grandkids—it’s easy to feel discouraged.

But for many long-time OC homeowners, a comfortable retirement is not only possible, it’s within your grasp. It all comes down to having a smart, actionable strategy. Here are the real costs to be aware of and the four key strategies to afford the retirement you deserve.

The Harsh Reality: The Real Costs of OC Retirement

First, we have to be realistic about the expenses. Even if your home is paid off, housing is a major cost. Property taxes continue to rise, and HOA fees can be substantial.

Beyond housing, healthcare is a massive factor. This includes not just doctor visits, but planning for long-term care. (As a side note, speak to an attorney about putting your home in a trust to protect it from medical bills so your heirs don't inherit your medical expenses.) Finally, the simple cost of daily life—from groceries to gas—is higher here than almost anywhere else.

Don't Bring Me a Problem, Bring Me a Solution

Facing those numbers can be scary, but here is what you can do about it.

Strategy 1: Unlock Your Biggest Asset—Your Home Equity

For most seniors in Orange County, your wealth isn't in your 401(k); it's in your home. You’ve built up hundreds of thousands, maybe millions, in equity. Be willing to unlock that equity to ensure you are taken care of long-term. This doesn't mean you can't leave a legacy, but it ensures your retirement is secure first.

Strategy 2: Downsize (or "Right-Size") & Erase Your Mortgage

This is the most powerful strategy for most. If your mortgage is still 30% or more of your income, it's time to get rid of it. You can sell your large home, use the equity to buy a smaller, more manageable home for cash, and eliminate your monthly mortgage payment.

Thanks to Prop 19, you can even transfer your old, low property tax base to your new home, saving you thousands every year. This single move can free up a huge portion of your monthly budget.

Strategy 3: Location, Location, Location

You can still stay in Orange County without paying Newport Beach prices. Compare the cost of living in different cities. You can find beautiful, affordable options in dedicated senior communities like Laguna Woods or Seal Beach, keeping you close to family and friends while dramatically lowering your costs.

Strategy 4: Consider a Reverse Mortgage (With Caution)

A reverse mortgage (HECM) can be a useful tool, but it must be approached with caution. It allows homeowners 62+ to leverage their equity for a lump sum or a monthly tax-free payout. This can be a viable option, but it's not a short-term fix. You must ensure the numbers make sense for your entire retirement timeline.

Hot Tip: A Little-Known CA Tax Program

There is a powerful but little-known tool called the State Controller's Property Tax Postponement Program. If you meet certain income and equity requirements, the state of California will actually pay your property taxes for you. They place a lien on the property, which is simply paid back when your heirs sell the home. This isn't free money, but it can free up thousands of dollars a year in your budget right now.

Retiring in Orange County isn't easy, but for homeowners with equity, it is absolutely possible with a smart plan. If you need help planning your move or have any questions, give me a call at 714-844-5696 and I'll be happy to help.