California Retirement Calculator

Planning a retirement in California starts from California statewide median household income of $84,900. Replacing 80% of that and drawing at the traditional 4% rate implies a portfolio near $1,698,000. That figure scales directly with your own income rather than the median, so treat it as a reference point and run your actual numbers above.

California's cost-of-living index of 142 against a national baseline of 100 matters more here than in most calculations, because retirement spending is locked to local costs for decades. Scaling the target by that index gives roughly $2,411,160 — higher than the unadjusted figure, reflecting what a 142-index location costs to live in.

California taxes income at an approximate effective rate of 9.3%. Whether that applies to retirement income varies — many states exempt Social Security and some exempt pension income entirely, so check the specific treatment before assuming your working-years rate carries into retirement.

The 4% rule comes from historical US market data over 30-year horizons and is a starting heuristic, not a guarantee. Longer retirements, earlier retirement dates, and sequence-of-returns risk all argue for a lower withdrawal rate or a larger portfolio.