Lifestyle
If you value having access to a wide variety of environments within a single state, put Illinois on your list of places to explore. From a large world-class city, situated on the banks of Lake Michigan, packed with a cornucopia of cultural, historical, shopping and dining opportunities to quaint towns surrounded by stunning prairie lands and a rich agricultural heritage, the Land of Lincoln has so much to offer retirees.
John Thomas Lang
Published April 10th, 2024
John Thomas Lang
•
Published April 10th, 2024
Table of Contents
Key Takeaways
Illinois offers a rich diversity of living environments for retirees, including a world-class lakefront city.
Enjoy a wide array of history and culture, including world-renowned restaurants, shops, and museums, plus a steady stream of music, dance, and theatrical events.
Best of all, Illinois doesn’t assess taxes on income from a wide assortment of financial retirement investment and savings vehicles, including IRAs and 401(K) plans.
While many states across the United States boast attractive features for retirees, Illinois stands out as a compelling option worth considering. Nestled in the heart of the midwest, Illinois offers retirees a unique blend of urban sophistication and natural beauty, coupled with diverse cultural experiences and a robust healthcare infrastructure.
From the bustling streets of Chicago to the serene landscapes of its rural communities, Illinois presents an array of opportunities and advantages that make it an enticing destination for retirees seeking a fulfilling and enriching lifestyle in their golden years.
Is Illinois a good place to live for retirees?
If you value having access to a wide variety of environments within a single state, put Illinois on your list of places to explore. From a large world-class city situated on the banks of Lake Michigan, packed with a cornucopia of cultural, historical, shopping, and dining opportunities, to quaint towns surrounded by stunning prairie lands and a rich agricultural heritage, the Land of Lincoln has so much to offer retirees.
Is Illinois tax-friendly for seniors?
Illinois is extremely tax-friendly for retirees. All retirement income—including Social Security and private pension payments as well as withdrawals from accounts like 401(k)s and IRAs—is exempt from state income tax. If you’re still working, you’ll pay a flat state income tax of 4.95%. Do seniors in Illinois pay property taxes over 65? While retirees do have to pay property taxes in Illinois, there are several exemptions that may help reduce your property tax burden, such as the Senior Citizens Homestead Exemption, a tax-deferral scheme, and a broader exemption for low-income seniors.
What benefits do seniors get in Illinois?
Illinois’ Department of Aging provides a number of benefits for retirees, including assistance for grandparents raising grandkids, Alzheimer’s and dementia support, and help applying for food stamps if you qualify.
Where is the best place to retire in Illinois?
If you’re drawn to the midwest, Illinois is an ideal state to consider. With an entire spectrum of living environments you can choose from, you’ll most likely find the ideal town or city to suit your interests and needs. Ultimately, the specific city that’s best for you during your retirement years will depend on so much that’s personal to you. Consider how you prefer spending your days, and how close you’d like to be to a large city. Also take a close look at your retirement plan and financial budget.
To help you out, let’s take a look at the following ten best cities in Illinois for your retirement.
Alton
CITY POPULATION: 25,627
SHARE OF POPULATION 65+: 17.2%
COST OF LIVING FOR RETIREES: 4.8% below national average
MEDIAN HOME VALUE: $85,297
MEDIAN RENT: $831
TAX RATING FOR RETIREES: Tax Friendly
A charming town located on the banks of the Mississippi River separating Illinois from Missouri to its west, Alton blends the best of midwestern small towns with the large-city offerings of nearby St. Louis and a vibrant senior-friendly way of life. The town’s crime rate is about the same as the national average, but Alton’s Senior Services Plus program offers retirees some additional civic resources and services designed to help them stay safe.
The town’s proximity to St. Louis means you can take advantage of a larger city’s commitment to public transportation and a large airport within 25 miles means the kids and grandkids can visit easily and frequently. You can also travel via Amtrak, rideshare companies, and the public transportation options offered by Metro St. Louis Transit.
The weather in Alton ranges from an average summer high of 89 degrees Fahrenheit to a low in January of 23 degrees. You can expect about 12 to 16 inches of snow each winter, but don’t let that scare you off, as the same non-profit Senior Services Plus program can also help with heating costs and transportation during the winter.
Champaign
CITY POPULATION: 88,302
SHARE OF POPULATION 65+: 10.7%
COST OF LIVING FOR RETIREES: 1.7% below national average
MEDIAN HOME VALUE: $197,424
MEDIAN RENT: $1,190
TAX RATING FOR RETIREES: Tax Friendly
Champaign is considered a college town with the University of Illinois located in the area and offering top-notch medical and cultural facilities to nearby residents and out-of-town visitors. You can either find your own housing, or look into one of the 11 local senior living and retirement communities. Catch live sports and music events at one of the nearby stadiums, or watch live performances at the Virginia Theatre. When the grandkids visit, take them to Sholem Aquatic Center and enjoy the tube slides and lazy river.
Enjoy a seasonal climate, with summer highs topping out in the mid-80s and wintertime lows getting down to the upper teens with about 20 inches of yearly snowfall on average. Two large international airports are located within 120 miles of Champaign (Indianapolis International and Chicago Midway). Together with accessible Amtrak service and Champaign-Urbana Mass Transit providing some fairly robust public transportation options, it’s not hard to get where you need to go without having to drive yourself.
Aurora
CITY POPULATION: 180,542
SHARE OF POPULATION 65+: 12.3%
COST OF LIVING FOR RETIREES: 11.1% above national average
MEDIAN HOME VALUE: $272,255
MEDIAN RENT: $2,100
TAX RATING FOR RETIREES: Tax Friendly
If you’re looking for a bit more of a big-city vibe, but you’re not all that interested in settling down inside Chicago, take a look at Aurora. It’s considered an outer suburb and as such offers a breathtaking level of access to a lively arts community, including professional visual and performing arts experiences, as well as a wide variety of cultural and civic amenities. Illinois dubbed it the “City of Lights” thanks to its status as one of the very first U.S. cities to adopt city-wide electric street lighting in 1881.
Yet for all its big-city feel, its crime rate is slightly below the national average and retirees can benefit from the local police department’s commitment to community safety programs. Take advantage of the PACE Bus and Metra commuter rail transportation options, as well as Aurora’s relative proximity to Chicago O’Hare and Midway airports, both within 30 miles. When family comes to visit, kids will love the Phillips Park Zoo and Blackberry Farm, while grownups will appreciate Paramount Theatre and the variety of outlet and luxury retail shopping options.
Aurora averages a little over two feet of snow each winter, and its average temperatures range from a low of 15 degrees in January to 84 in July.
Elgin
CITY POPULATION: 114, 797
SHARE OF POPULATION 65+: 15.1%
COST OF LIVING FOR RETIREES: 9% above national average
MEDIAN HOME VALUE: $284,116
MEDIAN RENT: $2,150
TAX RATING FOR RETIREES: Tax Friendly
Another bedroom community for Chicago, Elgin is located about 40 miles outside the city’s limits, yet still offers access to the best the city has to offer. With over 100 senior living and retirement communities, it’s definitely committed to serving its over-65 population. Whether you’re into performing or visual arts, recreational and outdoor activities, or museums and other cultural experiences, Elgin truly has something for everyone, including several casinos that are quite popular with tourists and locals alike.
If you’re looking forward to exploring nature in your retirement, Elgin might be just the place for you. Lords Park and Lords Park Zoo offer a wide variety of indigenous flora and fauna, while your grandkids will especially enjoy Lords Park Farm Zoo, where they can have up-close and personal experiences with goats, sheep, cows, and even a miniature donkey. Elgin also boasts some excellent museums and public libraries with extensive collections to browse and check out for home enjoyment.
Elgin’s climate is roughly in line with the other cities on our Illinois list, although it does tend to get slightly more snow at 33 inches on average each year. PACE and Metra line access helps broaden your transportation options, while the local police department also offers programs and services dedicated to Elgin’s retired population.
Springfield
CITY POPULATION: 114,394
SHARE OF POPULATION 65+: 21.8%
COST OF LIVING FOR RETIREES: 4.1% below national average
MEDIAN HOME VALUE: $145,228
MEDIAN RENT: $975
TAX RATING FOR RETIREES: Tax Friendly
As the capital of Illinois, Springfield can be expected to deliver the best of the many things Illinois has to offer new residents, and that’s definitely true. With a plethora of festivals, professional sporting events, and both visual and performing arts exhibits and experiences, Springfield might just blow you away with its ideal mix of lower cost of living and diversity of available activities and things to see.
Enjoy over 30 parks, including the lovely Carpenter Park nature preserve along the winding Sangamon River and the explosion of plant life in Washington Park and Botanical Garden. History buffs, kids, and, well, just about everyone will enjoy the city’s diverse historical offerings on Abraham Lincoln, who lived here for quite some time. From the national historic site where he lived, to his presidential library and museum as well as the Lincoln Tomb and War Memorials, you’ll find so much that you never knew about our 16th president.
The climate is fairly typical of Illinois, with low/high temps ranging from 18 to 85 degrees on average, and about a foot and a half of snow each season. Seniors are cherished in Springfield and you’ll enjoy the services offered by the Greater Springfield Senior Services agency, including weekday transportation by appointment. Sangamon Mass Transit also provides access to public transportation, and there are a few smaller airports within an hour or so of Springfield, making travel and family visits more accessible.
East St. Louis
CITY POPULATION: 18,469
SHARE OF POPULATION 65+: 22.2%
COST OF LIVING FOR RETIREES: 4.3% below national average
MEDIAN HOME VALUE: $35,257
MEDIAN RENT: $1,100
TAX RATING FOR RETIREES: Tax Friendly
East St. Louis is located directly across the Mississippi River from the downtown area of St. Louis, MO. At one time in the middle of the 20th century it was the fourth largest city in the state, but these days East St. Louis offers a quieter, slower pace of life than some of the other larger cities on this list.
However, with the larger city and its vibrant downtown just a short jog across the river, you can also simultaneously enjoy all that a larger city has to offer, including some of the finest restaurants in the region as well as the incredible architecture and farmers’ market in the highly walkable and visually stunning Soulard neighborhood.
Back across the river in East St. Louis, check out the tallest water fountain in the U.S.–the famous man-made Gateway Geyser, which shoots water up to the height of the iconic St. Louis Gateway Arch, located in Malcolm W. Martin Memorial Park. Explore the holdings of the Katherine Dunham Museum, including mementos from Dunham’s storied career as a dancer and writer.
Freeport
CITY POPULATION: 23,650 SHARE OF POPULATION 65+: 22.0% COST OF LIVING FOR RETIREES: 28.1% below national average MEDIAN HOME VALUE: $102,301 MEDIAN RENT: $700 TAX RATING FOR RETIREES: Tax Friendly
Boasting beautiful, well-kept parks and stunning waterfalls (see the award-winning Krape Park in particular), Freeport is a small Illinois town that offers amazing tourist attractions you will want to visit regularly as a year-long resident. You can also enjoy museums, including the Freeport Art Museum and the Silver Creek and Stephenson Railroad and Museum, as well as the Stephenson County Historical Society Museum and Arboretum.
If you’re into history, don’t forget to stop by the site of the most infamous debate in American politics, the Lincoln-Douglas Senate campaign debate. Here, the incumbent, Stephen Douglas, outlined his Freeport Doctrine on the issue of slavery, which ultimately split the Democratic vote and two years later handed Lincoln the presidency.
Another great way to explore your new community is to take a walk along the Jane Addams Recreational Trail. Enjoy the gently rolling prairie terrain, oak trees, and rambling creeks that lend the area so much of its beauty. And if golf is your thing, check out the Park Hills Golf Course, a well-reviewed pair of 18-hole courses.
Rockford
CITY POPULATION: 148,655
SHARE OF POPULATION 65+: 18.5%
COST OF LIVING FOR RETIREES: 5.3% below national average
MEDIAN HOME VALUE: $143,539
MEDIAN RENT: $950
TAX RATING FOR RETIREES: Tax Friendly
With a substantial community of retired residents and a location about 90 minutes outside of Chicago, Rockford offers lots of housing options for retirees, including 40 senior or retirement living communities. Its climate is fairly similar to the rest of the state, although it does get a bit more snow, just under three feet per year.
Rockford offers so much to do for retirees and their guests. If you’re an outdoor enthusiast, you’ll love the vast abundance of beautiful parks, trails, botanical gardens and more. Of special interest is the Anderson Japanese Gardens, widely regarded as one of the top examples of this formal style of landscaping in the U.S. Rockford also has a sizable selection of museums to browse and enjoy, from the Rockford Art Museum to the Burpee Museum of Natural History.
Palos Hills
CITY POPULATION: 18,530
SHARE OF POPULATION 65+: 20.5%
COST OF LIVING FOR RETIREES: 12.2% below national average
MEDIAN HOME VALUE: $242,940
MEDIAN RENT: $1,500
TAX RATING FOR RETIREES: Tax Friendly
Given that Palos Hills is a smaller community, you won’t find the same diversity of cultural and recreational offerings here as you would in a larger city. However, Palos Hills is another suburb of Chicago, meaning you have access to all that Chicago has to offer. It truly does offer the best of both worlds—the safe, cozy feel of a small town and the dizzying array of art, culture, dining, and shopping experiences you’d expect from any world-class city.
While the cost of living in Palos Hills isn’t that much lower than the national average, other aspects of life here can more than make up for that. A strong showing in many service sectors including medical providers, housing, and transportation mean that you’ll have lots of options to choose from and plenty of locations close to wherever you choose to locate.
Peoria
CITY POPULATION: 113,150
SHARE OF POPULATION 65+: 15.9%
COST OF LIVING FOR RETIREES: 3.1% below national average
MEDIAN HOME VALUE: $114,414
MEDIAN RENT: $963
TAX RATING FOR RETIREES: Tax Friendly
A lovely small city perched on a bluff next to the Illinois River, Peoria offers a truly exceptional cost of living, over 25% less than the national average. You’ll spend less for just about everything here, meaning your retirement savings work that much harder and go further for almost every expenditure, from groceries and transportation to housing and utilities.
But Peoria is more than just a savvy financial decision. It’s got a vibrant arts community, lots of parks and trails for hiking and other outdoor pursuits, and plenty of riverboat casinos to enjoy. Spend an afternoon at the Peoria Zoo or the Peoria Riverfront Museum to learn more about your new home.
Explore sculptural art in a walking tour in the Warehouse District. During the summer, you can take in five productions at the Corn Stock Theatre. You’ll enjoy seasonal weather in line with most of the rest of Illinois and a local international airport that makes traveling and family visits as simple as possible.
Bottom Line
Your retirement plan, savings, and anticipated income are important aspects of your ultimate decision on where to retire. They’ll impact where you go, what housing choices are open to you, and how you spend your retirement years. If you don’t have a retirement plan yet, that’s OK. We can create one together.
Share this advice
JT is currently VP, Marketing at Retirable. A proud Colorado Native now calling Chicago home, he has played a key role in scaling multiple $1B+ unicorn tech startups. In addition to his passion for improving financial wellness in his community, you can probably find JT digging through crates for vinyl records.
Share this advice
JT is currently VP, Marketing at Retirable. A proud Colorado Native now calling Chicago home, he has played a key role in scaling multiple $1B+ unicorn tech startups. In addition to his passion for improving financial wellness in his community, you can probably find JT digging through crates for vinyl records.
Recession-Proof Your Retirement
Download our guide to help safeguard your retirement from economic shifts.
