New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Penske Automotive Group Employees Weighing Oklahoma: Lower Costs, Lower Taxes, and a Different Kind of Retirement

Healthcare Provider Update: Healthcare Provider for Penske Automotive Group Penske Automotive Group employees typically receive healthcare coverage through a variety of providers depending on their specific plan selections, with major national insurers like Kaiser Permanente, UnitedHealthcare, and Anthem BlueCross BlueShield being among the options available. The exact provider often varies by location and the specific plan chosen during open enrollment. Healthcare Cost Projections for 2026 The healthcare landscape is set for significant upheaval in 2026, with potential premium hikes expected to exceed 75% for many Affordable Care Act (ACA) marketplace enrollees, largely due to the expiration of enhanced federal subsidies. Penske Automotive Group employees, particularly those nearing retirement, may face steep increases in their healthcare costs as insurers respond to rising medical expenses and price inflation. With the ACA marketplace seeing some state requests for premium increases reaching as high as 66%, careful financial planning will be essential for employees heading into another challenging year in healthcare affordability. Click here to learn more

'Penske Automotive Group employees weighing a move from California to Oklahoma should recognize that differences in state taxes, property values, and cost of living can influence how long their retirement savings last.' — Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

'Penske Automotive Group employees evaluating retirement options can benefit from comparing states like California and Oklahoma, where differences in taxation and living expenses may directly impact long-term financial stability.' — Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

How taxes in California and Oklahoma impact retirees and their income.
The differences in cost of living, property values, and daily expenses between the two states.
Programs and lifestyle considerations, such as Tulsa Remote and health care access, that may influence relocation decisions.

The thought of leaving behind California's vibrant cities, golden beaches, and Mediterranean-like climate may seem unthinkable to many residents. The state continues to draw attention from around the world because of its world-class amenities, varied cultural life, and natural beauty. However, California's growing cost of living, high state taxes, and skyrocketing housing costs have put a heavy financial burden on those on fixed incomes like Social Security and pensions. Some employees at Penske Automotive Group are therefore looking at alternatives that offer a more sustainable retirement way of life. Oklahoma is one place that is becoming more popular.

Due to advantageous tax laws, reduced housing prices, and even incentive programs like Tulsa Remote, hundreds of Californians have moved to Oklahoma in recent years. ¹ While Oklahoma may not be the best option for every retiree, there are sufficient financial differences between the two states that they should be carefully considered.

California versus Oklahoma Tax Comparisons

Retirement planning heavily relies on taxes, and there are significant disparities between California and Oklahoma. The tax code in California is particularly difficult for retirees who have several sources of income, according to Carlos Hernandez of Wealth Enhancement. Although Social Security benefits are not taxed in California, the state's progressive tax system applies to pensions, 401k contributions, and other retirement income. Rates can reach 12.3% for many taxpayers, while the highest incomes can pay up to 13.3%, ² which is the highest state income tax rate in the country.

In contrast, Oklahoma offers retirees 65 and older a $10,000 deduction on other types of retirement income in addition to exempting Social Security income from taxes. ³ Oklahoma's highest marginal income tax rate is 4.75%, ³ which is far lower than California's even without taking this deduction into account.

These differences can result in annual tax savings of thousands of dollars for seniors who receive both Social Security and pensions. Take, for instance, a person who receives $30,000 in Social Security benefits in addition to a $40,000 pension. The pension income would be subject to full state taxation in California. In Oklahoma, Social Security would be completely untaxed, $10,000 of the pension income would be exempt, and the remaining taxable pension amount would be subject to significantly lower rates. As a result, the tax burden is considerably lighter, giving the household budget more flexibility.

Cost of Living and Property Values

The financial equation consists of more than just taxes. The housing market in California puts additional financial strain on seniors, claims Kevin Won of Wealth Enhancement. California routinely has some of the highest property values in the country. The base property tax payment is still correlated with high market values, despite the fact that established safeguards like Proposition 13 restrict yearly increases in property tax assessments. The absolute cost is nevertheless high in comparison to national norms, even if householders 55 and older may relocate their tax base under specific circumstances. ⁴

The problem is made worse by insurance premiums. In California, plans that cover the danger of earthquakes or wildfires are not only costly, but they are also getting harder to obtain in high-risk locations.

The real estate market in Oklahoma paints a completely different picture. Compared to many California regions, the median home value is less than half. ⁵ Reduced property taxes are a direct result of lower property prices. Although Oklahoma does not provide tax-base transfers or unique senior exemptions like California does, retirees frequently still benefit from lower total valuations.

Additionally, Oklahoma benefits from a lower overall cost of living. Daily costs, such as groceries, utilities, and medical care, are often less than in California. Retirement savings can extend further thanks to the combined impact of lower housing, insurance, and daily expenses, which gives people greater flexibility in choosing their spending and lifestyle preferences.

Rewards Initiatives: Tulsa Remote

Tulsa Remote is one distinctive program contributing to Oklahoma's rising popularity. This program was started in 2018 with the goal of luring remote workers to Tulsa by providing cash incentives and opportunities for community integration. The program offers $10,000 to participants who agree to stay in Tulsa for a minimum of one year.

Over 60,000 applications have been submitted to Tulsa Remote since its launch, with almost 8,000 of those applications coming from California. ⁶ As a result, nearly 3,600 participants have relocated to Tulsa. ⁶ Despite focusing on working professionals rather than retirees, this program has helped spread awareness about Oklahoma's affordability and livability.

The Practical Financial Impact

The practical impact is better demonstrated by going over the previous financial case again. In California, a retiree with $40,000 in pension income and $30,000 in Social Security would pay high taxes; nevertheless, in Oklahoma, they would receive large benefits. Once the $10,000 exemption and reduced marginal rates are applied, the difference could result in yearly savings of thousands of dollars.

Beyond taxes, long-term financial consistency is strengthened by being able to buy a home for half as much, or less, than in many California markets. Over time, lower utility costs, lower insurance premiums, and overall cost-of-living reductions can add up to provide more discretionary income for leisure, travel, or building retirement stability.

In Conclusion

Although California is still a popular place to live, seniors are finding it increasingly difficult to keep up with the state's high taxes, high property values, and overall cost of living. Oklahoma is a strong alternative because of its low tax rates, $10,000 retirement income exemption, reasonably priced housing market, and lower cost of living.

According to a recent analysis, retirees in Oklahoma could maintain their financial resources for roughly 51 years with $1.5 million in savings and Social Security benefits, far exceeding the 24 years estimated in California. ⁷ This difference is primarily due to Oklahoma's significantly lower annual cost of living (about $29,666) ⁷ than to California's high expenses.

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Sources:

1. MSN. ' Hundreds of Californians have been paid $10,000 to relocate to Oklahoma ,' by Hannah Fry. August 15, 2025.

2. Nerdwallet. ' California State Income Tax Rates and Brackets for 2024-2025 ,' by Sabrina Parys. June 5, 2025.

3. SmartAsset. ' Oklahoma Retirement Tax Friendliness .' 2025.

4. California State Board of Equalization. ' Transfer of Base Year Value for Persons Age 55 and Over - Propositions 60/90 .' 2025.

5. Forbes. ' Median Home Price by State ,' by Kiah Treece. July 29, 2025.

6. SF Gate. ' The surprising destination luring California transplants with $10,000 ,' by Tessa McLean. August 4, 2025.

7. CNBC. ' $1.5 million is the 'magic number' for retirement savings--here's how long it lasts in every U.S. state ,' by Mike Winters. Mar. 15, 2025.

What are the specific eligibility criteria for participation in the Penske Cash Balance Plan, and how can employees of Penske ensure they meet these requirements as they work towards retirement? Furthermore, how does the plan address the transition from being a participant to receiving benefits once the eligibility criteria are met?

Eligibility Criteria: Employees of Penske automatically become participants in the Penske Cash Balance Plan after completing a year in which they work 1,000 or more hours, as long as they are in an eligible group. To ensure they meet the eligibility requirements, employees should confirm they meet these conditions annually and consult the Summary Plan Description for details(Penske Cash Balance Pla…).

In what ways does the Penske Cash Balance Plan differentiate itself from traditional defined contribution plans, and how can employees of Penske navigate the choices available to them, including lump sum distributions and annuities? Additionally, what implications do these options have for long-term financial planning for retirement?

Plan Differences: The Penske Cash Balance Plan is a defined benefit plan, offering benefits similar to a defined contribution plan but providing additional options like lump-sum distributions and annuities. Employees should carefully evaluate these options, as lump sums provide immediate access to funds, while annuities ensure steady long-term payments. Both choices impact long-term financial stability(Penske Cash Balance Pla…).

How does the concept of vesting apply to the Penske Cash Balance Plan, and what are the steps that employees of Penske should take to ensure they understand their rights to these benefits prior to retirement? Furthermore, what resources are available to help employees fully grasp the nuances of vesting in relation to their individual situations?

Vesting: Vesting refers to an employee's right to receive benefits even if they leave Penske before retirement. Employees must meet specific requirements to become vested, and they can consult the Brief Plan Summary to fully understand their rights(Penske Cash Balance Pla…).

What mechanisms does the Penske Cash Balance Plan have in place to ensure that employees can trust they will receive their benefits? How does this assurance interact with projected benefits and calculations provided through DB Online, and what should employees of Penske do if they have concerns about the accuracy of their benefit estimates?

Benefit Assurance: Benefits from the Penske Cash Balance Plan are paid from a trust fund established by the company and insured by the Pension Benefit Guaranty Corporation (PBGC). Employees can rely on the trust fund and the PBGC for benefit security, and should contact the Customer Contact Center if they have concerns about benefit estimates(Penske Cash Balance Pla…).

How are pension benefits from the Penske Cash Balance Plan typically taxed, and what strategies can employees of Penske implement to manage tax implications effectively during their retirement planning? Moreover, what are the possible ways to minimize taxes on lump sum distributions compared to annuity payments?

Taxation: Benefits from the Penske Cash Balance Plan are generally taxed as ordinary income. Employees can manage taxes effectively by rolling over lump-sum distributions to an IRA to defer tax payments. Careful consideration of lump sums versus annuities can minimize taxes over time(Penske Cash Balance Pla…).

What are the various forms of payment options available under the Penske Cash Balance Plan, and how should employees of Penske evaluate their choices regarding life annuities versus lump sum payments? Additionally, how do these payment options affect short-term and long-term financial stability in retirement?

Payment Options: Employees can choose between lump-sum payments and various types of annuities. Evaluating these options is essential for balancing short-term and long-term financial goals, as lump sums offer immediate liquidity, while annuities provide lifetime payments(Penske Cash Balance Pla…).

In the event of a divorce or separation, what specific procedures must employees of Penske follow to protect their pension benefits, and how does a Qualified Domestic Relations Order (QDRO) impact these benefits? What guidance does the Penske Cash Balance Plan provide to ensure that the division of assets is conducted appropriately?

Divorce and QDRO: In the event of a divorce, employees must obtain a Qualified Domestic Relations Order (QDRO) to divide their pension benefits. This court order ensures that the division is legally recognized, and employees should refer to plan procedures for guidance(Penske Cash Balance Pla…).

How can employees of Penske prepare for the multitude of decisions they need to make as they approach retirement, and what resources does the company offer to assist in this decision-making process? Additionally, how do the various teams and services provided by Penske streamline the retirement transition for its employees?

Retirement Preparation: Penske offers specialized retirement counseling and customer support services to help employees navigate retirement decisions. These resources can assist employees in making informed choices and smooth their transition into retirement(Penske Cash Balance Pla…).

What are the major types of annuities offered by the Penske Cash Balance Plan, and how should employees of Penske assess the suitability of these annuity options for their personal retirement needs? What does the company recommend in terms of beneficiaries and their implications for future payments from the plan?

Annuity Options: Penske offers various annuities, including life annuities and joint survivor annuities. Employees should assess these based on their personal needs and consult the company for recommendations regarding beneficiaries to ensure future payments are secure(Penske Cash Balance Pla…).

How can employees of Penske contact the company to inquire further about the Penske Cash Balance Plan and its intricacies? What methods of communication are available, and what information should employees gather beforehand to make their inquiries as productive as possible?

Contact Information: Employees can contact the Penske Cash Balance Plan administrators by calling 1-800-755-5801 for further inquiries. It's advisable to have all relevant documents and questions prepared in advance to make the discussion more productive(Penske Cash Balance Pla…).