America's Heartland has not been getting a lot of love lately. For a lot of people, it's not on their radar as one of the best places to retire. In fact, among the 12 states that the U.S. Census Bureau groups together as the Midwest region, four (Illinois, North Dakota, Michigan and Kansas) made the list of top 10 states people moved out of in 2023, according to United Van Lines' annual national movers study.
Although the Midwest is home to several of the cheapest places to live, it still has plenty to offer retirees. Many states in the region offer affordability, beautiful scenery, an abundance of activities and quality health care. 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.
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: 10% below the national average
- Median income for population 65+: $43,816
- Well-being score: 56/100
- Illinois State Tax Guide
A big draw for this relatively small city is its affordability. The average home value is only $122,317, compared with the $358,734 average for the U.S. And a private room in a nursing home costs $8,714 a month; the median across the U.S. is $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.
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2. Fort Wayne, Indiana
- City population: 269,994
- Share of population 65+: 14.7%
- Cost of living: 11% below the national average
- Median income for population 65+: $42,378
- 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.
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3. Des Moines, Iowa
- City population: 210,381
- Share of population 65+: 12.4%
- Cost of living: 14% below the national average
- Median income for population 65+: $41,312
- Well-being score: 60/100
- 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 $202,614, compared to the national average of $358,734.
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4. Manhattan, Kansas
- City population: 53,682
- Share of population 65+: 9.4%
- Cost of living for retirees: 5% below the national average
- Median income for population 65+: $71,232
- Well-being score: 46/100
- 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 is a comfortable $55,316 a year, and the average Manhattan, Kansas home value is $265,060, compared to the $226,870 average for the state and $748,012 in New York County.
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.
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5. Ann Arbor, Michigan
- City population: 119,381
- Share of population 65+: 12.3%
- Cost of living: 4% above the national average
- Median income for population 65+: $82,367
- 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 $508,176, versus just $245,683 for the rest of the state.
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6. Mankato, Minnesota
- City population: 45,742
- Share of population 65+: 12.5%
- Cost of living: 6% below the national average
- Average income for population 65+: $54,203
- Well-being score: 56/100
- 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.
So far, all that growth has yet to push up living costs. While other metro areas in Minnesota come with above-average expenses, Mankato's cost of living remains below the national average. By comparison, the cost of living in Minneapolis is only 1% below the national average. Unfortunately, typical incomes in Mankato are also lower, with the median income for residents at $61,726, compared with $76,332 in Minneapolis.
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7. Kansas City, Missouri
- City population: 510,704
- Share of population 65+: 13.9%
- Cost of living: 0% below the national average
- Median income for population 65+: $44,231
- Well-being score: 62/100
- 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 $241,905, and the median household income is $65,256.
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8. Lincoln, Nebraska
- City population: 294,757
- Share of population 65+: 14%
- Cost of living: 8% below the national average
- Median income for population 65+: $56,540
- Well-being score: 62/100
- 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.
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9. Fargo, North Dakota
- City population: 133,188
- Share of population 65+: 13.2%
- Cost of living: 6% below the national average
- Median income for population 65+: $55,521
- Well-being score: 64/100
- 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 $292,909, 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.
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10. Columbus, Ohio
- City population: 913,175
- Share of population 65+: 10.7%
- Cost of living: 10% below the national average
- Median income for population 65+: $44,771
- Well-being score: 62/100*
- Ohio State Tax Guide
The average home value in Columbus, the state capital, is $247,805, compared with the national median of $358,734.
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.
*Well-being score is for Franklin County, where Columbus is located.
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11. Sioux Falls, South Dakota
- City population: 206,410
- Share of population 65+: 13.5%
- Cost of living: 8% below the national average
- Median income for population 65+: $48,870
- 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 it make our list of 10 most tax-friendly states for retirees, but it's filled with 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 $324,624, compared to $302,826 for the state.
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12. Green Bay, Wisconsin
- City population: 105,744
- Share of population 65+: 13.9%
- Cost of living: 10% below the national average
- Median income for population 65+: $40,920
- Well-being score: 59/100
- 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 $251,160, compared with $358,734 for the U.S.
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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, 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.
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