Retirement Benefits

Thinking About Moving Out of California in Retirement?

What You Should Know About Taxes, Health Benefits, and More

We would love you to retire in California and spend your retirement dollars in the golden state. However, you may be considering a move to another part of the country, whether to save money, have a change of scenery, or be closer to loved ones.

As you plan your CalPERS retirement, we want you to make an informed choice. Do your research and consider contacting a financial advisor to make sure you understand the financial impacts of retiring out of state. The information below will help you as you make your decision.

Did you know that 84% of CalPERS retirees and beneficiaries reside in California?

Taxes on Your Retirement Income

You must consider all the tax implications of moving out of California. Income taxes, property taxes, and sales taxes all vary from state to state. And some states have tax breaks for pension income, retirement distributions, and Social Security.

As a CalPERS retiree, you may still have to pay both federal and state income taxes depending on where you live and your income sources. Check with your new state’s tax or revenue agency for more information. The California Franchise Tax Board provides guidance on determining resident status.

If you become a resident of another state and want to discontinue your California tax withholding, you can make that change in your myCalPERS account by selecting Tax Withholdings from the Home tab. You can also complete the Tax Withholding Election (PDF) form and send it to us.

If you have questions about your California residency status or your California state taxes, contact the California Franchise Tax Board. For general information on taxes and your CalPERS pension, visit Taxes on our website.

Choose a New Health Plan

CalPERS health benefits out-of-state 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 your myCalPERS account to determine which plans are available in your area.

For an overview of all CalPERS health plans, visit Retiree Plans & Rates on our website.

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 your myCalPERS account, go to the Retirement tab, and select Payment Options. You can also complete a new Direct Deposit Authorization (PDF) form and send it to us.

Don’t Forget to Change Your Address

When you’re contacting your utilities and other service providers to change your address, don’t forget about CalPERS. We need your current address if you receive benefit payments, tax statements, or other important correspondence about your pension and health benefits.

Read “Moving? Here’s What You Need to Do” to learn how to change your address, or simply log in to your myCalPERS account.