Retiring in Indiana: a complete guide

Is Indiana a good place to retire?

The Midwestern state of Indiana is potentially a great retirement destination for those seeking a peaceful and relatively affordable lifestyle with access to nature, sports, and cultural attractions. 

With its charming small towns, large cities, welcoming communities, and relatively low cost of living, Indiana offers a unique retirement experience that attracts many retirees every year.

According to data from the U.S. Census Bureau in 2024, Indiana had a population of approximately 6.9 million people, with over 17% of the population being over the age of 65, making it one of the top states with a large retirement population.

If you want to call Indiana home during your retirement, it can be a good idea to speak to a financial advisor to see how your finances will work with the move. 

Unbiased can help match you with a financial advisor suited to your needs. Simply answer a few questions, and we’ll do the rest. Get started here.

What are the pros and cons of retiring in Indiana?

Below are some of the reasons many retirees are drawn to the state of Indiana each year:

The upsides of retiring in Indiana

• Affordable living: Indiana's cost of living is generally lower than the national average, which could be a major draw for retirees on a fixed income. Housing and healthcare costs, in particular, are more affordable than in many other states. 

• Outdoor activities: Indiana is home to numerous state parks, forests, and lakes, providing ample opportunities for outdoor activities such as hiking, fishing, and boating. There’s also a National Park: Indiana Dunes, on the shores of Lake Michigan. The state is also a popular destination for golfers, with over 400 courses to choose from. 
• Sports culture: Indiana is known for its love of basketball (go Hoosiers!) and motorsports, with numerous events and attractions related to both sports throughout the year. The Indianapolis 500, for example, is the largest single-day sporting event in the world, attracting hundreds of thousands of spectators every year. 
• Cultural scene: Indiana has a rich history and cultural heritage, with numerous museums, galleries, and performing arts venues. The state hosts several festivals and events throughout the year, including the Indy Jazz Fest, the Indiana State Fair, and the Covered Bridge Festival. 

While these advantages spell out an idyllic retirement location, there are some drawbacks to be aware of.

The cons of retiring in Indiana

Let’s not forget that retiring in Indiana can have some drawbacks:

• Weather: Indiana has a varied climate with hot summers and cold winters, which may not be appealing to some retirees. 
• Limited access to water: Although Indiana has numerous lakes and rivers, its only shoreline on a major body of water is in its northwestern-most reaches, where a sliver of the state meets Lake Michigan, which could be a downside for retirees who enjoy coastal living. 
• Limited public transportation: Indiana has limited public transportation options, which could be a concern for retirees who do not drive or prefer not to rely on their own vehicles, particularly in rural areas.

At what age can you retire in Indiana?

There’s no set retirement age in Indiana, the same as all other states. This means that individuals are free to retire whenever they choose, as long as they are able to support themselves financially.

However, there are some age-related benefits and considerations for retirees in Indiana: 

• 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. You could check out the average retirement savings in the US here.

Best places to retire in Indiana

If you do decide to retire in Indiana, here are some of the preferred destinations in the state:

• Indianapolis: The capital city of Indiana has a lot to offer retirees, including a low cost of living, affordable housing, and a variety of cultural and entertainment options. There are also many senior living communities and healthcare facilities throughout the city. 
• Bloomington: This college town is known for its scenic beauty, with rolling hills, forests, and lakes surrounding the city. Bloomington has a thriving arts and culture scene, as well as a number of retirement communities and healthcare facilities. 
• Carmel: Located just north of Indianapolis, Carmel is a popular destination for retirees thanks to its safe neighborhoods, excellent schools, and low crime rate. The city also offers a variety of cultural and recreational activities, including parks, golf courses, and museums. 
• Valparaiso: This small town in northern Indiana offers a charming downtown area with shops, restaurants, and entertainment options. It also has a number of senior living communities and healthcare facilities, as well as easy access to outdoor activities such as hiking and fishing. 
• Fort Wayne: Located in northeastern Indiana, Fort Wayne has a low cost of living and affordable housing options. It also offers a variety of cultural attractions, including museums, theaters, and festivals, as well as excellent healthcare options. 
• West Lafayette: Home to Purdue University, West Lafayette is a college town with a strong sense of community. It offers a low cost of living, affordable housing, and plenty of cultural and entertainment options. The city also has a number of healthcare facilities and retirement communities. 

The bottom line

Convinced to retire in the Midwest? While Indiana offers many great options for retirees, with affordable housing, a low cost of living, and more, people should be prepared to contend with the state's relatively rural locale and Midwestern climate.

It's important to seek expert financial advice to weigh up all of the costs associated with retiring in Indiana, 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. 

Find the right advisor for your needs today.