16 Best Illinois Cities To Retire With $500K in Savings
- - 16 Best Illinois Cities To Retire With $500K in Savings
Travis WoodsFebruary 15, 2026 at 7:30 PM
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Jasperdo / Flickr.com
Illinois can be something of a mixed-bag state for retirees. It offers tax breaks on retirement income with no taxation on Social Security or retirement account withdrawals, but it also has some of the highest sales and property taxes in America (not to mention bitterly cold winters and crime issues). Still, those tax benefits for retirees are awfully attractive, making the Prairie State a definite location to consider when choosing a place to settle down for your golden years.
Before selecting an Illinois city as your retirement haven, it’s absolutely crucial that you know you can afford it. Let’s assume you’ve saved $500,000 for your retirement nest egg — which cities are best suited to accommodate that amount over a 20-year period of retirement?
To answer that question, GOBankingRates held a study to find the best cities in Illinois for retirees with $500,000 in savings, using the U.S. Census Bureau’s five-year American Community Survey to determine the retirement populations and household median incomes. Cost-of-living indexes were then sourced from Sperling’s BestPlaces to determine monthly and yearly costs of living, as well as how long a 20-year retirement would cost in each city. Finally, GOBankingRates ranked the cities from highest to lowest in terms of their overall livability, ultimately finding the 16 best Illinois locations for a $500,000 retirement.
Alex Potemkin / iStock.com1. Princeton -
Livability score: 81
Cost of living for 20 years for a single person (with Social Security): $195,842
Annual cost of living: $33,821
Monthly cost of living: $2,818
Average monthly mortgage: $978
Find Out: Retirement Net Worth: How Your Savings Compare to the Average Retiree
Read Next: 5 Clever Ways Retirees Are Earning Up To $1K per Month From Home
Jacob Boomsma / iStock.com2. Geneseo -
Livability score: 81
Cost of living for 20 years for a single person (with Social Security): $279,102
Annual cost of living: $37,984
Monthly cost of living: $3,165
Average monthly mortgage: $1,365
Learn More: The Money You Need To Save Monthly To Retire Comfortably in Every State
halbergman / Getty Images3. Crestwood -
Livability score: 81
Cost of living for 20 years for a single person (with Social Security): $396,990
Annual cost of living: $43,878
Monthly cost of living: $3,657
Average monthly mortgage: $1,730
StelsONe / Shutterstock.com4. Galena -
Livability score: 80
Cost of living for 20 years for a single person (with Social Security): $423,265
Annual cost of living: $45,192
Monthly cost of living: $3,766
Average monthly mortgage: $1,851
DenisTangneyJr / Getty Images/iStockphoto5. Westchester -
Livability score: 79
Cost of living for 20 years for a single person (with Social Security): $479,345
Annual cost of living: $47,996
Monthly cost of living: $4,000
Average monthly mortgage: $2,055
Stephanie Le / Shutterstock.com6. West Peoria -
Livability score: 75
Cost of living for 20 years for a single person (with Social Security): $119,520
Annual cost of living: $30,005
Monthly cost of living: $2,500
Average monthly mortgage: $631
Boscophotos / Wikimedia Commons7. Olympia Fields -
Livability score: 75
Cost of living for 20 years for a single person (with Social Security): $464,238
Annual cost of living: $47,241
Monthly cost of living: $3,937
Average monthly mortgage: $1,969
Living Rich: Here’s How Much You Need To Retire With a $100K Lifestyle
PhilipR / Shutterstock.com8. Metropolis -
Livability score: 72
Cost of living for 20 years for a single person (with Social Security): $136,848
Annual cost of living: $30,871
Monthly cost of living: $2,573
Average monthly mortgage: $650
DenisTangneyJr / Getty Images/iStockphoto9. Carlinville -
Livability score: 70
Cost of living for 20 years for a single person (with Social Security): $199,600
Annual cost of living: $34,009
Monthly cost of living: $2,834
Average monthly mortgage: $843
Joe Hendrickson / Shutterstock.com10. Silvis -
Livability score: 69
Cost of living for 20 years for a single person (with Social Security): $161,874
Annual cost of living: $32,122
Monthly cost of living: $2,677
Average monthly mortgage: $920
©Shutterstock.com11. Crete -
Livability score: 68
Cost of living for 20 years for a single person (with Social Security): $387,179
Annual cost of living: $43,388
Monthly cost of living: $3,616
Average monthly mortgage: $1,746
Randall Runtsch / Shutterstock.com12. Shelbyville -
Livability score: 67
Cost of living for 20 years for a single person (with Social Security): $171,650
Annual cost of living: $32,611
Monthly cost of living: $2,718
Average monthly mortgage: $860
benkrut / Getty Images/iStockphoto13. Manteno -
Livability score: 66
Cost of living for 20 years for a single person (with Social Security): $397,234
Annual cost of living: $43,890
Monthly cost of living: $3,658
Average monthly mortgage: $1,822
DenisTangneyJr / Getty Images14. Godfrey -
Livability score: 64
Cost of living for 20 years for a single person (with Social Security): $263,100
Annual cost of living: $37,184
Monthly cost of living: $3,099
Average monthly mortgage: $1,237
John C Hansen / Flickr.com15. Watseka -
Livability score: 63
Cost of living for 20 years for a single person (with Social Security): $95,597
Annual cost of living: $28,809
Monthly cost of living: $2,401
Average monthly mortgage: $590
See Next: 25 Cities Where You Can Retire in Great Weather for $2,000 a Month
©AirBnB16. Round Lake Park -
Livability score: 63
Cost of living for 20 years for a single person (with Social Security): $265,684
Annual cost of living: $37,313
Monthly cost of living: $3,109
Average monthly mortgage: $1,251
Methodology: For this study, GOBankingRates analyzed cities across the United States to find the best places to retire with $500,000 in savings. Using the 2023 five-year U.S. Census American Community Survey, cities with at least 1,000 residents ages 65 and over were identified. For each location a number of factors were found including; total population, population ages 65 and over, total households and household median income all sourced from the U.S. Census American Community Survey. The cost-of-living indexes were sourced from Sperling’s BestPlaces and include the grocery, healthcare, housing, utilities, transportation and miscellaneous cost-of-living indexes. Using the cost-of-living indexes and the national average expenditure costs for retired households, as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey for retired consumer units, the average expenditure cost for each location can be calculated. The average single-family home value was sourced from Zillow Home Value Index for June 2025. Assuming a 10% down payment and using the national average 30-year fixed mortgage rate of 6.63, as sourced from the Federal Reserve Economic Data on Aug. 7, 2025, the average mortgage cost can be calculated for each city. The average Social Security income for one person and a married couple filed jointly were sourced from the Social Security Administration’s Monthly Statistical Snapshot. Using the average Social Security income and the total cost of living, the annual cost of living after Social Security income was calculated assuming the person retires at age 65 and lives in retirement for another 20 years, the 20-year cost of retirement was calculated. Using $500,000 in savings, the locations with a 20-year retirement cost after Social Security income over $500,000 were removed. The livability was sourced from AreaVibes and is used to determine the overall quality of life, representing the “best” places. The remaining cities with a 20-year cost of retirement under $500,000 were sorted to show the highest quality of life, representing the best places you can retire with $500,000 in savings. If two places tie for the same livability, then the cheaper city was ranked higher. All data was collected on and is up to date Aug. 7, 2025.
Editor’s note: Photos are for representational purposes only and might not reflect the exact locations listed.
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This article originally appeared on GOBankingRates.com: 16 Best Illinois Cities To Retire With $500K in Savings
Source: “AOL Money”
