Is Illinois a Good Place to Retire?

Yes, Illinois can be a good place to retire. Many people look past headlines and focus on daily life. Illinois offers cities, small towns, healthcare access, and tax rules that appeal to retirees. 

Pros of Retiring in Illinois

Tax Benefits

Illinois does not tax your Social Security benefits or withdrawals from retirement accounts like IRAs and 401(k)s at the state income tax level. This means simpler tax filing and a more predictable income. You do not report those funds on your state return, and you keep more of what you saved. 

Healthcare Access

Many hospitals in the state rank high in national lists for overall care and patient experience. Northwestern Memorial Hospital in Chicago is one of the top hospitals in the nation. Rush University Medical Center and University of Chicago Medical Center also rank highly. Several have senior-focused units. The University of Chicago Medicine runs a Successful Aging & Frailty Evaluation Clinic that helps older adults manage frailty-related conditions. UI Health offers a Memory & Aging Clinic for Alzheimer's and dementia care.

Community and Culture

The Prairie State offers both city life and quiet country living. You can visit museums, live shows, and restaurants in Chicago. You can also spend time in small towns and parks . Charles Mound is the highest point in Illinois, rising more than 1,200 feet above sea level. The Art Institute of Chicago holds more than 300,000 works of art and the building is fully accessible .

Safety

According to Seniorly, Illinois is the eighth safest state for seniors. Some parts of the state have violent and property crime rates below the averages seen in several other states. Programs from the Illinois Department on Aging also promote safety and quality of life through advocacy and outreach.

Safety is not only about where you live. It includes how your vehicle arrives. Understanding car shipping safety helps you avoid risks and choose the right carrier.  Read our guide.

Cost of Living

The cost of living in Illinois is around 5 percent lower than the national average. Residents pay less for housing, groceries, electricity, and healthcare. Average home prices in Illinois are more than 25 percent lower than the national average. Rent remains more expensive, at more than 37 percent higher than the rest of the country.

The table below shows how retiring in Illinois costs compared to the national average: 

Although these costs are already lower, some state programs can further offset expenses. The Low Income Home Energy Assistance Program, or LIHEAP, helps with utility bills. Community Action Agencies also help eligible individuals with housing concerns.

Affordable Cities 

Some of the best places to retire in Illinois offer a low cost of living, especially for housing. Cities like Peoria, Springdale, and Rockford have housing prices that are more than 40 percent lower than the state average. Peoria sits at 74.5 percent lower. Carbondale is nearly 71 percent lower.

The table below shows how these average home prices stack up against the rest of Illinois: 

Source: 2026 data from Zillow.com

Housing is not everything, though. Compare overall cost of living, including groceries, utilities, and taxes. Visit a place in different seasons before you decide. 

Cons of Retiring in Illinois

High Overall Tax Burden

Illinois imposes a 4.95 percent individual income tax rate. Combined sales and local taxes also raise everyday costs. Property taxes rank the second highest in the country , at an average rate of 1.83 percent. Some counties have even higher rates. Lake County sits at 2.43 percent. DeKalb County is at 2.30 percent. 

Traffic and Transportation

Traffic delays exist in larger cities like Chicago, where busy roads and rush hours slow travel. In small towns, public transit options are limited. The Ride Free Transit Benefit allows free rides on some buses and trains. Planning trips around lighter traffic also helps.

Extreme Weather

Living in Illinois means experiencing severe weather risks year-round. The state sees thunderstorms, heavy lightning, hail, blizzards, and winter storms. Tornadoes are common in spring and summer, especially from April through June. An emergency kit with water, food, flashlights, and medications helps. Ready Illinois offers information to prepare for disasters.

Severe weather is not the only thing to plan for before moving to Illinois.  Read our guide.

Final Thoughts: Retiring in Illinois

Settling in the Prairie State offers variety, stability, and access to services many older adults value. You can choose between active cities and quiet towns, strong medical care, and cultural attractions. Planning ahead helps you manage taxes, weather, transportation, and housing so your retirement years stay comfortable long-term.

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Having your own car makes life in Illinois easier. Driving helps you reach medical centers, parks, and communities across the state. If you are moving to Illinois, shipping your vehicle with AmeriFreight Auto Transport can help you settle in with less stress.

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Frequently Asked Questions (FAQs)

Are there affordable lakefront retirement communities in Illinois outside of the Chicago area?

Yes. Carlyle Lake in Carlyle and Cedar Lake near Carbondale both have affordable retirement options nearby.

What are the best walkable riverfront towns for retirees in the Fox Valley area? 

Batavia, St. Charles, Geneva, Elgin, and Algonquin all offer walkable riverfront areas with trails, shops, parks, and cafes close to the Fox River. 

Which Illinois suburbs offer free dial-a-ride or senior-specific transportation for non-drivers? 

Cook County programs serve towns like Barrington and Elk Grove Village with demand-response rides. Waukegan Township offers Dial-A-Ride to help seniors access services.

Are there specific 'Senior Heat Relief' centers or programs in Peoria during summer heatwaves?

Yes. Peoria opens cooling centers during heatwaves, including libraries and community centers. Seniors can call 211 or check state heat resources to find open locations and hours each summer.

Disclaimer

The information provided in this guide is for general informational purposes only and does not constitute legal, financial, or professional advice. While efforts have been made to ensure the accuracy and timeliness of the content, laws, regulations, and local conditions are subject to change without notice. 

Readers should not act upon this information without seeking appropriate professional counsel, especially in financial and legal matters.