Your guide to retiring in Illinois

Why retire in Illinois?

Illinois is in the heart of the heartland and is home to the Midwest’s largest city, Chicago. It’s a sizable, populous state, and thus, has a mix of rural and urban environments, something for everyone. 

There’s also a good number of seniors in the state. 

According to data from the U.S. Census Bureau, in 2024, Illinois had a population of approximately 12.7 million people, with over 17.6% of the population 65 or older.

At what age can you retire in Illinois?

If you can afford to retire, there’s no age at which you’re mandated to do so in Illinois or any other US state. However, there are some age-related benefits and considerations for retirees in Illinois: 

• Social Security benefits: The earliest age at which you can begin receiving Social Security benefits is 62, but if you delay taking benefits, your monthly payments will increase. Full retirement age (FRA) is between 66 and 67, depending on your birth year. Delaying benefits until after FRA can result in even higher monthly payments. 

• Medicare eligibility: Medicare eligibility begins at age 65, regardless of retirement status. However, if you choose to retire before age 65, you will need to find alternative healthcare coverage until you become eligible for Medicare. 

• Age discrimination: It is illegal for employers to discriminate against employees or job applicants based on age. 

• Retirement savings: Regardless of retirement age, it is important for individuals to start saving for retirement as early as possible. Many financial experts recommend saving at least 15% of your income for retirement. 

What draws retirees to Illinois?

Several things about Illinois draw retirees and potential retirees to the state, including: 

• Diverse environment: Illinois is known for its diverse communities, from the hustle and bustle of Chicago to the rural countryside surrounding it. Retirees can enjoy living in a diverse environment that offers plenty of opportunities for exploration and cultural experiences. 

• Outdoor activities: Illinois is home to numerous parks, lakes, and forests, providing ample opportunities for outdoor activities such as hiking, camping, fishing, and boating. There’s also the Lake Michigan shoreline, with beach access.

• Culture: Illinois has numerous museums, galleries, and performing arts venues. The state hosts several festivals and events throughout the year, including the Chicago Jazz Festival, the Illinois State Fair, and the Art Institute of Chicago's annual Block Party. And Chicago is constantly holding large events and festivals.

What are some downsides to retiring to Illinois?

There are also some potential downsides to retiring in Illinois to take into consideration, such as: 

• Cost of living: Illinois' cost of living is generally higher than the national average, which could be a concern for retirees on a fixed income. Housing and healthcare costs, in particular, are higher than in many other states. 

• Traffic and transportation: Traffic can be a concern in and around the major cities of Chicago and Springfield, particularly during rush hour. There may also be a lack of public transportation options in rural areas.

• Extreme weather: Illinois is prone to bouts of extreme weather conditions such as tornadoes, thunderstorms, and blizzards, which could be a concern for retirees living in certain areas. 

The best places to retire in Illinois

Here are some of the top destinations for retirees in Illinois:

• Naperville: A Chicago suburb, Naperville has been ranked by some publications as the best place to retire in Illinois. It boasts a low crime rate, highly rated public schools, and numerous parks and nature preserves for outdoor recreation. 

• Springfield: As the state capital, Springfield has numerous museums, galleries, and historic sites, such as the Abraham Lincoln Presidential Library and Museum. It also boasts a lower cost of living than many other Illinois cities. 

• Bloomington: Home to Illinois State University, Bloomington offers a college town feel with access to cultural events and outdoor activities, such as hiking and boating on Lake Bloomington. It has a low unemployment rate and a cost of living that is slightly below the national average. 

• Rockford: Located in northern Illinois, Rockford has a low cost of living and numerous parks and recreational opportunities, such as the Anderson Japanese Gardens and Rock Cut State Park. It’s also fairly close to cities such as Chicago and Milwaukee. 

• Carbondale: Located in southern Illinois, Carbondale is home to Southern Illinois University and offers a laid-back, small-town feel. It boasts a low cost of living and easy access to outdoor activities such as hiking and boating on Lake Murphysboro. 

Get advice about retiring in Illinois

Whether you’re looking to live in the big city or a more rural small town, Illinois might fit the bill for retirees. Plus, with a variety of recreational activities, retirees likely won’t find themselves bored, but they should prepare for a higher cost of living as a result. 

It's important to seek expert financial advice to weigh up all of the costs associated with retiring in Illinois, including property taxes, insurance, and living expenses, in order to make an informed decision about whether the state is the right choice for your retirement. 

Match with a financial advisor now.