While you consider where to spend your golden years in retirement, one thing is clear — California remains the favorite choice for retirees. More than 81% of CalPERS retirees remain in-state, keeping more than 75% of the annual pension payments inside its borders. The remaining retirees live primarily in neighboring states, and fewer than 1% live internationally.
If you’re planning to depart California in retirement, whether to save money, explore new surroundings, or be closer to family, it’s important to evaluate key factors both before and after your move.
Before You Move
Research How Taxes Will Affect Your Retirement Income
You must consider the tax implications of moving out of California. Income taxes, property taxes, and sales taxes differ widely across states. Some states, like Florida, Texas, and Nevada, don’t tax pension income at all. Other states provide partial tax breaks on retirement distributions and Social Security. Want to know which states don’t tax pensions? Explore your options.
Once you’re retired and decide where to live in retirement, you’ll want to check with your new state’s tax or revenue agency for more information. You can contact the California Franchise Tax Board, which provides guidance on determining California resident status, with any questions.
If you become a resident of another state and want to discontinue your California tax withholdings, you can make that change in myCalPERS by selecting Tax Withholdings from the Home tab. You can follow our step-by-step How to Change Your Tax Withholdings on myCalPERS (PDF) guide if you need help. Consult a tax professional in your new state if you have questions about your tax withholding.
For general information on taxes and your CalPERS pension, visit Taxes on our website.
Check Health Care Costs and Availability
Out-of-state CalPERS health benefit costs may differ from those in California, and some health plans are available only in certain ZIP codes. Be sure to contact the health plan before enrolling to make sure they cover your new ZIP code and that their provider network is accepting new patients.
You can use our Health Plan Search by ZIP Code or log in to myCalPERS to determine which plans are available in your area.
For an overview of all CalPERS health plans, visit Retiree Plans & Rates on our website.
After You Move
Update Your Direct Deposit Information
If you change banks when you move to another state, be sure to update your direct deposit information right away. Log in to myCalPERS, go to the Retirement tab, and select Payment Options.
When you move out-of-state, before signing up for direct deposit, first verify that your financial institution belongs to the National Clearing House Association (NACHA). While most financial institutions can accept and provide direct deposit, they must belong to NACHA.
Update CalPERS with Your Address and Contact Information
When you’re contacting your utilities and other service providers to change your address, don’t forget about CalPERS.
We need your current address and your new contact information if you receive benefit payments, tax statements, or other important correspondence about your pension and health benefits. You can file an official change of address with the U.S. Postal Service so your mail is forwarded to your new address.
You can log in to myCalPERS, then select My Account and Contact Information to update your personal email address or phone numbers if they changed.
If you’re part of other retirement and health programs, such as the CalPERS Long-Term Care Program, CalPERS Deferred Compensation Plans, and the CalHR Savings Plus program, contact them to update your address and contact information.