The Midwest has plenty to offer retirees. Not only is it home to several of the cheapest places to live, but many states in the region also offer beautiful scenery, an abundance of activities and quality health care along with affordability.
Despite these positive qualities, America's Heartland has not been getting a lot of love lately. Among the 12 states that the U.S. Census Bureau groups together as the Midwest region, three (Illinois, North Dakota, and Nebraska) made the list of top 10 states people moved out of in 2024, according to United Van Lines' annual national movers study. The area just isn't on many people's radar as one of the best places to retire, although it's very well worth considering.
So, if you're ready to go against the grain and head to the Midwest for your retirement, we suggest you consider the following spots.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
We highlighted one great retirement destination in each state, taking into account living costs, safety, median incomes and poverty rates for retirement-age residents, as well as residents' sense of well-being and the availability of recreational and healthcare facilities. Here are our retirement picks in the 12 midwestern states. Some (if not all) are sure to surprise you.
Disclaimer
The list is ordered alphabetically by state. The 12 states in the Midwest region are classified by the U.S. Census Bureau. See "Methodology" at the end of the list for details on our data sources.
1. Peoria, Illinois
- City population: 110,460
- Share of population 65+: 16.5%
- Cost of living: 24.4% below the national average
- Median income for population 65+: $48,221
- Well-being score: 60/100
- Illinois State Tax Guide
A big draw for this relatively small city is its affordability. The average home value is only $123,272, compared with the $356,585 average for the U.S. And a private room in a nursing home costs $8,714 a month in 2023; the median across the U.S. was $9,733 a month.
And yet, plenty of money has been pumping through the city, in a bid to further develop the downtown area. A few years ago, the Downtown Development Corporation of Peoria assisted several projects, including the issuance of 714 construction permits in downtown with an estimated value of $74 million.
Already the Riverfront area offers a vibrant setting with a number of eateries, shops and attractions, including the Peoria Riverfront Museum, complete with its Giant Screen Theater and Dome Planetarium. The museum hosts a senior program with a free bi-monthly morning lecture series and free admission to the museum every third Wednesday of the month to guests aged 60 and up. Also, the Peoria Park District offers 64 park sites with miles of hiking trails, golf courses, a nature center and more.
2. Fort Wayne, Indiana
- City population: 269,994
- Share of population 65+: 14.9%
- Cost of living: 18% below the national average
- Median income for population 65+: $46,040
- Well-being score: 56/100
- Indiana State Tax Guide
The Fort Wayne metro area's affordability will not cost you in amenities. Despite being home to a nice collection of quiet neighborhoods, it also houses a thriving arts scene and hosts a number of festivals and events throughout the year, including the family-friendly Three Rivers Festival in the summers — the second largest festival in Indiana. Indeed, the three local rivers — the St. Marys, the St. Joseph and the Maumee — are a main feature of the area, providing ample opportunities for canoeing, kayaking and cruising. More outdoor attractions: Fort Wayne has more than 80 parks and 100 miles of hiking and biking trails.
Fort Wayne is by no means a metropolis, but if you ever feel the need for a small-town escape, head two hours south to Richmond, one of the cheapest small towns in America. Its claim to fame (other than being budget-friendly): Some of the earliest jazz records were recorded in Richmond by such greats as Duke Ellington and Louis Armstrong.
3. Des Moines, Iowa
- City population: 210,381
- Share of population 65+: 12.5%
- Cost of living: 13.4% below the national average
- Median income for population 65+: $45,563
- Well-being score: 62/100
- Iowa State Tax Guide
For retirees looking to live in a big city on a small budget, Des Moines is a good choice. Affordability is just one reason it made our list. Des Moines also boasts a strong economy and plenty of healthcare facilities specializing in aging-related services.
Retirees won’t lack for things to do, either. There are numerous museums and arts venues, including an outdoor sculpture park, a zoo and botanical gardens. There’s even a casino and racetrack in nearby Altoona that hosts annual camel, ostrich and zebra races (sorry, no wagering on these exhibition races allowed).
The average home value in Des Moines is $199,442, compared to the national average of $356,585.
4. Manhattan, Kansas
- City population: 53,682
- Share of population 65+: 10%
- Cost of living for retirees: 16.6% below the national average
- Median income for population 65+: $70,608
- Well-being score: 40/100
- Kansas State Tax Guide
The Little Apple may not have all the bright lights and major metropolitan allure of New York City, but it has plenty to recommend itself, as well as significantly lower costs. The median income for all households in Manhattan, KS is a comfortable $78,054 a year, and the average home value is $270,891, compared to the $356,585 average for the state.
Home to Kansas State University, Manhattan affords residents attractive college-town amenities, including the privilege of calling the school's top-notch athletics program your home team. One particularly senior-friendly offering: Kansas residents who are 60 years of age or older and are enrolled as non-degree-seeking students may request a waiver of tuition from Kansas State University. The city is also home to an extensive trail system — including 40 miles of trails throughout the city — for walking and biking.
5. Ann Arbor, Michigan
- City population: 119,381
- Share of population 65+: 12.7%
- Cost of living: 5.5% above the national average
- Median income for population 65+: $89,063
- Well-being score: 74/100
- Michigan State Tax Guide
Another college town well suited to retirees, Ann Arbor is home to the University of Michigan with all its educational programs (including the Osher Lifelong Learning Institute), sporting events and cultural affairs. The university also runs the Geriatrics Center & Institute of Gerontology, which focuses on healthcare issues that come with aging. Along with its research facilities, medical facilities and staff, the Center offers programs and classes to help older adults maximize their good health and independence.
Ann Arbor's healthcare facilities are top-notch, and the area's public transportation options are another noted winning attribute for older residents. A downside, however, is affordability. The average home value is $494,218, versus just $241,165 for the rest of the state.
6. Mankato, Minnesota
- City population: 45,742
- Share of population 65+: 12.6%
- Cost of living: 13.3% below the national average
- Average income for population 65+: $55,568
- Well-being score: 53/100
- Minnesota State Tax Guide
If the cold winters and equally harsh tax situation don't put you off of the North Star State, consider retiring in Mankato, about 90 miles southwest of the Twin Cities. It's still a small city, but development is on the rise, and the local economy is growing fast. Revitalization projects have added a nice mix of restaurants, shops, entertainment venues and more to the downtown area in recent years, and the city plans to spread that level of development throughout the Minnesota River Valley.
Some goals of the plan include adding housing, specifically within walking distance of where jobs and shops are; expanding Riverfront Park and other recreational land; and possibly building a pedestrian bridge that crosses the Minnesota River to North Mankato.
The average Mankato, MN home value is $289,778.
7. Kansas City, Missouri
- City population: 510,704
- Share of population 65+: 14.1%
- Cost of living: 11.6% below the national average
- Median income for population 65+: $47,789
- Well-being score: 61/100
- Missouri State Tax Guide
The Kansas City metro area straddles two states and offers a wide range of attractions for people of all ages including retirees. The music and arts scene is particularly vibrant, being home to legendary jazz musician Charlie Parker as well as the American Jazz Museum, the Nelson-Atkins Museum of Art, the Kauffman Center for the Performing Arts and the Kansas City Art Institute.
For foodies, authentic barbecue is big, too. And you can entertain visiting grandkids with Legoland, the Sea Life aquarium and the Kansas City Zoo.
The average home value in Kansas City is $232,895, and the median household income is $87,670.
8. Lincoln, Nebraska
- City population: 294,757
- Share of population 65+: 14.4%
- Cost of living: 7.4% below the national average
- Median income for population 65+: $61,837
- Well-being score: 63/100
- Nebraska State Tax Guide
Lincoln may not be home to financial guru Warren Buffett like Omaha, which is about an hour north, but it has plenty of other notable points to recommend it. The capital city offers an abundance of attractions, including more than 130 parks, fine restaurants, active nightlife and a number of museums and theaters. Highlights include the Sunken Gardens (for budding horticulturalists) and the Museum of American Speed (for car enthusiasts).
Being a college town, home to both the University of Nebraska's Lincoln campus and Union College, the population may skew young. But the city is also prepared to assist its aging residents with about 30 healthcare and social service facilities per 1,000 seniors.
9. Fargo, North Dakota
- City population: 133,188
- Share of population 65+: 13.6%
- Cost of living: 9.4% below the national average
- Median income for population 65+: $60,858
- Well-being score: 66/100
- North Dakota State Tax Guide
With its low costs and generous tax situation, North Dakota has consistently ranked highly among our best states for retirement. So we believe spending your golden years in the Peace Garden State to be a financially savvy choice for your retirement destination (albeit perhaps an unorthodox one). The average home value is $299,744, and the average cost for a private room in a Fargo nursing home was $12,395 a month in 2023.
North Dakota State University is based in Fargo and, along with a number of other area colleges, brings with it attractive amenities for retirees and co-eds alike. That includes sporting events and cultural attractions, such as numerous musical and theater performances. Just be sure to bundle up if you venture out in the winter months. The average low temperature in January is -1 degrees Fahrenheit, with the high only reaching 16 degrees Fahrenheit.
Columbus, Ohio
10. Columbus, Ohio
- City population: 913,175
- Share of population 65+: 11%
- Cost of living: 8.6% below the national average
- Median income for population 65+: $47,469
- Well-being score: 62/100
- Ohio State Tax Guide
The average home value in Columbus, the state capital, is $238,832, compared with the national median of $356,585.But low costs don't equate to a lack of activities. Home to Ohio State University, locals can enjoy the co-ed culture, including big sporting events, concerts and cultural diversions. It also offers Program 60, which invites Ohio residents age 60 and older to take university courses free.
Off-campus, the downtown area has a lively scene with an eclectic mix of shops, galleries and restaurants. The Short North and German Village neighborhoods, in particular, are worth exploring.
11. Sioux Falls, South Dakota
- City population: 206,410
- Share of population 65+: 13.7%
- Cost of living: 9.3% below the national average
- Median income for population 65+: $54,268
- Well-being score: 63/100
- South Dakota State Tax Guide
If you've never considered moving to South Dakota in retirement, perhaps you should. Sioux Falls is a particularly great spot to settle. Not only did South Dakota make our list of 10 most tax-friendly states for retirees, but it also has plenty of other advantages, including a booming economy, low unemployment and hospitals specializing in geriatric services. For all these reasons, plus the city's recreational activities (including regularly scheduled morning walks and games for the senior program, run by the city's Parks and Recreation department). Sioux Falls also made our list of best cold weather places to retire.
The average home value in Sioux Falls is $321,169, compared to $302,480 for the state.
12. Green Bay, Wisconsin
- City population: 105,744
- Share of population 65+: 13.8%
- Cost of living: 13.9% below the national average
- Median income for population 65+: $45,067
- Well-being score: 60/100
- Wisconsin State Tax Guide
The University of Wisconsin brings all the benefits of retiring in a college town to the industrial city of Green Bay. That includes a thriving cultural and arts scene, quality medical care, a walkable downtown with an array of dining and shopping options, and of course, sports.
And while the state's tax situation leaves something to be desired, low living costs are attractive. Green Bay is particularly affordable — the average home value in Green Bay is just $252,326, compared with $356,585 for the U.S.
Methodology
To pinpoint great retirement destinations in each state, we weighed a number of factors:
- Cost of living for major metropolitan and micropolitan statistical areas, provided by PayScale.
- State well-being index score is provided by digital health company Sharecare, in collaboration with Gallup. The five elements of well-being that make up the overall Gallup-Sharecare Well-Being Index are community, physical, purpose, social and financial well-being. The index is calculated on a scale of 0 to 100 and based on more than 2.5 million nationally representative surveys.
- Population data, including the percentage of the population that is age 65 and older, and the average median income for all households is provided by the Census Bureau. The figures are highlighted in these rankings for the benefit of readers but were not factors in our methodology for ranking the best places to retire
- Taxes on retirees are based on Kiplinger's state-by-state guide to taxes on retirees.
- Average home prices provided by Zillow.
- Median income for population 65+ provided by Point2 Homes.
- Nursing home costs are provided by Genworth.
Related content
-
Five Tips For Estate Planning in 2025We're almost halfway through the year. Is your estate in order? If not, here are some tips to get it done in 2025.
-
Is it Still a Good Idea to Give Savings Bonds as Gifts?Kiplinger editor explores if it's still a good idea to get savings bonds as gifts for children, looking at their returns and usability.
-
What to Do With Your Tax Refund: 6 Ways to Bring GrowthUse your 2024 tax refund to boost short-term or long-term financial goals by putting it in one of these six places.
-
What Does Medicare Not Cover? Eight Things You Should KnowHealthy Living on a Budget Medicare Part A and Part B leave gaps in your healthcare coverage. But Medicare Advantage has problems, too.
-
10 Cheapest Small Towns to Live InThe cheapest small towns might not be for everyone, but their charms can make them the best places to live for plenty of folks.
-
Best Cold Weather Places to RetirePlaces to live Some like it hot; others not so much. Here are the 12 best places to retire if you can't stand the heat.
-
15 Reasons You'll Regret an RV in RetirementMaking Your Money Last Here's why you might regret an RV in retirement. RV-savvy retirees talk about the downsides of spending retirement in a motorhome, travel trailer, fifth wheel or other recreational vehicle.
-
The Cheapest Places To Retire in the USWhen you're trying to balance a fixed income with an enjoyable retirement, cost of living is a crucial factor to consider.
-
The Six Best Places to Retire in New Englandplaces to live Thinking about a move to New England for retirement? Here are the best places to land for quality of life, affordability and other criteria.
-
13 Smart Estate Planning Movesretirement Follow this estate planning checklist for you (and your heirs) to hold on to more of your hard-earned money.
