15 Best Cities to Retire in the Midwest

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This article takes a look at the 15 best cities to retire in the Midwest. If you wish to skip our detailed analysis on navigating retirement living in the US, you may go to 5 Best Cities to Retire in the Midwest.

To Stay or Not to Stay

When retirement rolls around, so does a list - of often very pressing - questions. Among these, one of the most important is deciding the location of your retirement. Are you going to stay put? Move states? Or perhaps venture further and switch countries completely? What your answer to this question is will have a major influence on how your retirement years play out. 

Where you live could actually probably be the biggest retirement decision you make because of the differences in taxes in different states. When you're updating your numbers, not only think about updating your financial savings numbers, but think about spending. Spending is all about really making sure that you understand how the inflationary environment is impacting what your monthly spend is and what it'll be in the future.” -Rhian Horgan, CEO and Founder, Silvur, a retirement planning application.

For a large section of American retirees, thinking about moving for retirement is already a top priority. CNBC reports findings from a recent AARP survey, stating that about 38% of Americans aged 50 and older have sought professional help when planning their retirement. Of the work that these professionals do, some of the key areas focus on financial planning and where - in terms of geography - an individual’s retirement savings would best pan out. 

Some of the most popular investment management and financial planning companies that assist Americans on the road to retirement are The Charles Schwab Corporation (NYSE:SCHW), Mercer International Inc. (NASDAQ:MERC), and BlackRock, Inc.(NYSE:BLK). While the way that these companies assist clients differs - for instance, The Charles Schwab Corporation (NYSE:SCHW) offers clients a complimentary financial plan to aid with their retirement milestones, whereas Mercer International Inc. (NASDAQ:MERC) offers portfolio development - the end goal for each is to put the retiree in the best possible financial position. 

What to Do After Deciding to Move

For senior citizens who do decide to move for retirement, reaching this decision is only the first step. The next question that arises is where. While exact figures are not available, we know that upwards of 450,000 Americans have chosen to retire abroad - based on the number of Social Security payments that are being received outside of the United States, as reported by the Wall Street Journal

Many more yet, decide to simply move cities and states for retirement. In 2023 alone, over 338,000 US residents moved within the country for retirement. These numbers, shared by Hire A Helper’s latest report on migration trends, depict a growing trend of venturing outside of one’s hometown when retirement comes knocking. While you might not think so, the main driving factor behind these moves is not simply the urge to explore a new place or get out and about. 

Instead, it’s more practical pushing factors such as cost of living, weather, and even healthcare that often force an individual to think twice about where they are going to retire. Of course, America is vast, and making this decision can be nothing short of puzzling. The American Midwest continues to be a popular retirement destination with Iowa even being included in the most popular states to retire to in the US

To facilitate present and future retirees in contemplating a retirement move to the Midwest, we have compiled the following list of the 15 best cities to retire in the Midwest.

15 Best Cities to Retire in the Midwest
15 Best Cities to Retire in the Midwest

Steven Frame / Shutterstock.com

Methodology

To compile this list of the 15 best cities to retire in the Midwest, we consulted several sources including our list of 20 Best Cities to Retire for 2024, Kiplinger, GOBankingRates, Stacker, The Travel, and FinanceBuzz. The United States Census Bureau defines the following states as Midwestern: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin. Once a list of places was compiled using these sources, we then ranked them across multiple factors, namely, their average figure for a one-bedroom rental, their average monthly grocery bill for a single person, their livability scores, and their median house price. For this article, rental prices were taken from Zillow Group, Inc. (NASDAQ:Z) and Zumper, grocery figures were taken from the Economic Policy Institute, livability scores were taken from Area Vibes, and median house prices were taken from Redfin Corporation (NASDAQ:RDFN). Once these rankings were assigned, places that did not have one-bedroom rental listings were removed. A cumulative score was then assigned to each city, with the 15 highest-scoring cities making our list of the 15 best cities to retire in the Midwest.

For cities that gained an equal score, their rent figures were used as a tie-breaker. The resulting list is presented in ascending order, with the highest-ranked place being presented last. It is important to remember that personal preference plays a big part. The best course of action is to visit the place you plan to move to, converse with locals, take advice from a financial consultant, and only then make your final decision. 

By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or a professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders. 

Here are the 15 best cities to retire in the Midwest:

15. Sioux Falls, South Dakota

Insider Monkey Score: 36

Average Monthly One-Bedroom Rental: $872

Average Monthly Grocery for One: $367

Livability Score: 85

Median House Price: $315,000

First up on our list of best cities to retire in the Midwest is the South Dakota city of Sioux Falls. With a monthly rent and grocery total that circles the $1,200 mark, retirees will find the city financially-friendly. Sioux Falls also boasts a range of indoor and outdoor activities that will keep senior citizens busy including the Great Plains Zoo, the Butterfly House & Aquarium, and Falls Park.

14. Manhattan, Kansas

Insider Monkey Score: 42

Average Monthly One-Bedroom Rental: $650

Average Monthly Grocery for One: $385

Livability Score: 81

Median House Price: $234,500

Manhattan in Kansas is one of the best cities to retire in the Midwest for retirees. Not only does it carry a low cost of living - rent and groceries come out to about $1,000 per month and can go even lower if you’re smart with your money - but it’s also a college town that is friendly and welcoming. One of the best Midwest college towns to retire, Manhattan is home to the Kansas State University which is a public research institution.

13. Lawrence, Kansas

Insider Monkey Score: 43

Average Monthly One-Bedroom Rental: $800

Average Monthly Grocery for One: $376

Livability Score: 88

Median House Price: $260,500

Lawrence is a Kansas pick and another college town next up on our list of the best cities to retire in the Midwest. Located in Douglas County, this is the resting place of the man credited with inventing basketball - Dr. James Naismith. Residents can visit the Spencer Museum of Art where they can immerse in a mix of indigenous and contemporary art or visit wildlife at the Clinton State Park including deer, catfish, and more.

12. Green Bay, Wisconsin

Insider Monkey Score: 44

Average Monthly One-Bedroom Rental: $795

Average Monthly Grocery for One: $351

Livability Score: 71

Median House Price: $237,950

Wisconsin is among the best Midwest states to retire in. Social Security is exempt from taxes, the state offers good health care, even earning a 22nd rank on the United Health Foundation’s 2023 Health Ranking, and the state encompasses a wide range of leisure activities. Within Wisconsin, Green Bay is a great pick. Home to the Green Bay Packers, the Neville Public Museum, and the Bay Beach Wildlife Sanctuary, retirees will find lots to fill their days.

11. Eau Claire, Wisconsin

Insider Monkey Score: 45

Average Monthly One-Bedroom Rental: $925

Average Monthly Grocery for One: $356

Livability Score: 88

Median House Price: $274,450

Continuing with the Wisconsin trend, we have the city of Eau Claire. A big city, Eau Claire boasts a population around the 70,000 mark, perfect for retirees who want to experience city life during their Golden Years. Known for indie music and rich culture, Eau Claire residents can enjoy its many music festivals, parks, and museums.

10. Des Moines, Iowa

Insider Monkey Score: 45

Average Monthly One-Bedroom Rental: $875

Average Monthly Grocery for One: $365

Livability Score: 83

Median House Price: $190,000

You might ask yourself, ‘Is Des Moines a good place to retire?’, given how widely recommended it is as a Midwestern retirement pick. Well, the answer is an astounding yes. The city is a particularly good choice for retirees who dream of being retirement-period homeowners. Des Moines boasts a median house price of just $190,000 - over $195,000 cheaper than the US median, bringing the dream of a home that much closer. Of course, the city has many other draws as well, including fresh produce, nature destinations, and live musical performances.

9. Lincoln, Nebraska

Insider Monkey Score: 45

Average Monthly One-Bedroom Rental: $785

Average Monthly Grocery for One: $361

Livability Score: 84

Median House Price: $277,000

One of the best pieces of retirement advice that any retiree can get is to live out a Midwestern retirement. Of course, it comes as no surprise that one of the best Midwestern retirement spots is Lincoln in the state of Nebraska. A low cost of living, low median house price, and high livability score mean that Lincoln is the perfect mix of features desired by any retiree.

8. Bloomington, Indiana

Insider Monkey Score: 46

Average Monthly One-Bedroom Rental: $978

Average Monthly Grocery for One: $339

Livability Score: 83

Median House Price: $260,000

Home to one of the United States’ largest and oldest state universities - Indiana University - Bloomington is best known for its identity as a college town. The city holds all the college town features such as a low cost of living and a mix of cultures, making it the ideal location for retirees who want to broaden their retirement experiences while staying on a budget.

7. Fargo, North Dakota

Insider Monkey Score: 48

Average Monthly One-Bedroom Rental: $800

Average Monthly Grocery for One: $356

Livability Score: 84

Median House Price: $259,000

Among the best places to live in the Midwest, Fargo is set in Cass County. The city offers a relatively low cost of living with rent and groceries coming out to around $1,200. With some budget left over, retirees can choose to spend on luxuries such as small vacations or retail therapy. Residents can frequent the West Acres Mall where they’ll find a variety of shopping options.

6. Akron, Ohio

Insider Monkey Score: 49

Average Monthly One-Bedroom Rental: $775

Average Monthly Grocery for One: $371

Livability Score: 81

Median House Price: $128,000

The number six spot on our list of the best cities to retire in the Midwest goes to Akron in Ohio. A large city, Akron is hailed as the ‘Rubber Capital of the World’ due to its growing popularity as a hub for rubber firms as the city’s population grew in the 1900s. The city boasts the Stan Hywet Hall and Gardens, the Akron Zoo, and the F.A. Seiberling Nature Realm, among many other activities that retirees can busy themselves with.

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Disclosure: none. 15 Best Cities to Retire in the Midwest is originally published on Insider Monkey. 

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