Is Wisconsin a good place to retire?
According to data from the U.S. Census Bureau, as of July 2023, an estimated 19% of Wisconsin's 5.9 million population was over the age of 65. This makes the state one of the top states with a large retirement population.
Wisconsin is an emerging retirement destination for many Americans seeking a peaceful and serene environment. The state’s access to outdoor activities, cultural events, and a comfortable climate are huge draws for retirees.
However, despite Wisconsin offering a unique retirement experience that attracts many retirees every year, Wisconsin has a slightly higher-than-average cost of living, which may put off some.
Where are the best places to retire in Wisconsin?
If Wisconsin is your chosen retirement state, here are six of the best places to retire in:
- Madison: Madison is a vibrant city that offers a unique blend of urban and outdoor experiences. It is home to the University of Wisconsin-Madison and has a thriving arts and culture scene. The city also boasts many parks, lakes, and nature trails, making it an excellent place for outdoor enthusiasts.
- Wausau: Wausau is a small city located in central Wisconsin that offers a relaxed pace of life and plenty of outdoor activities. It is situated near Rib Mountain State Park, which offers hiking, skiing, and snowboarding opportunities. The city also has a downtown area with shops, restaurants, and cultural attractions.
- Eau Claire: Eau Claire is a small city located in western Wisconsin that offers a mix of urban and rural experiences. It has a lively downtown area with shops, restaurants, and cultural events, and it is surrounded by natural areas that offer hiking, fishing, and other outdoor activities.
- La Crosse: La Crosse is a picturesque city located on the Mississippi River in western Wisconsin. It has a historic downtown area with shops, restaurants, and cultural attractions, and it is surrounded by natural areas that offer hiking, biking, and other outdoor activities.
- Green Bay: Green Bay is a mid-sized city located on the shores of Lake Michigan in northeastern Wisconsin. It is home to the Green Bay Packers football team and has a vibrant downtown area with shops, restaurants, and cultural attractions. The city is also surrounded by natural areas that offer boating, fishing, and other outdoor activities.
- Door County: Door County is a popular retirement destination located on a peninsula that juts out into Lake Michigan. It is known for its charming small towns, scenic views, and outdoor activities such as hiking, fishing, and boating. The area also has many art galleries, shops, and restaurants.
What are the pros and cons of retiring in Wisconsin?
Like any state, Wisconsin has a number of draws and things that would put retirees off choosing to retire in the state.
It’s important you weigh all of these up before making any big decisions.
Here are just a selection of some of the pros and cons of retirement in Wisconsin for you to consider.
The pros:
- Serene environment: Wisconsin is known for its tranquil environment, from its lush forests to its sparkling lakes. Retirees can enjoy living in a peaceful environment that offers plenty of opportunities for relaxation and outdoor activities.
- Comfortable climate: Wisconsin's climate varies greatly depending on the region, but many areas have a comfortable climate with mild summers and snowy winters. This makes it an attractive destination for retirees who enjoy seasonal changes.
- Outdoor activities: Wisconsin is home to numerous state parks, forests, and lakes, providing ample opportunities for outdoor activities such as hiking, camping, fishing, and boating.
- Cultural scene: Wisconsin has a vibrant cultural scene, with numerous museums, galleries, and performing arts venues. The state hosts several festivals and events throughout the year, including the Wisconsin State Fair, Summerfest, and the EAA AirVenture Oshkosh.
The cons:
- Cost of living: Wisconsin's cost of living is generally lower than the national average, but it could still be a concern for retirees on a fixed income. Housing and healthcare costs, in particular, could be higher in certain areas.
- Limited access to urban amenities: Wisconsin's largest cities, such as Milwaukee and Madison, offer a wide range of amenities, but some retirees may prefer the amenities of larger metropolitan areas.
How much do you need to retire in Wisconsin?
According to personal finance website, GoBankingRates.com, the average annual amount a retiree in Wisconsin can expect to pay is $55,158.
This takes housing, food, utilities, transportation and health care costs into account.
If a retiree wanted enough retirement savings to last for 25 years, they would need $839,790, according to the site. For 30 years, you would need just over a million dollars, at $1,008,757.
These figures do not include Social Security income.
However, how much you need to retire will depend on your unique circumstances and goals.
For example, if you decide to live a quieter lifestyle with meals at home, no vacations, and dialled-back social life, you’ll need a lot less than someone who regularly goes out to socialize and vacation abroad.
Does Wisconsin tax Social Security?
When it comes to the amount of tax you’ll pay in Wisconsin for retirement, each person is different.
Wisconsin is considered a moderately tax-friendly state.
It does not tax Social Security retirement benefits. However, retirement income (from non-Roth accounts) is subject to tax, with state income tax rates ranging from 3.5% to 7.65% depending on your income and filing status.
Wisconsin also has a deduction of up to $5,000 for residents 65 and over. However, to qualify, your federal adjusted gross income must be less than $15,000 for a single person or less than $30,000 if you’re married.
At what age can you retire in Wisconsin?
People 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 Wisconsin:
- 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 your 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.
- Retirement savings: Regardless of retirement age, you need to start saving for retirement as early as possible. Many financial experts recommend saving at least 15% of your income for retirement.
Get expert retirement advice
It's important to seek expert financial advice to weigh up all of the costs associated with retiring in Wisconsin, 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.
Unbiased can connect you with a financial advisor best suited to meet your needs.