Best Cities to Retire in Illinois in 2025

To make your search easier, we pulled together the 10 best cities to retire in Illinois. We compared key factors like the percentage of residents 65+, median home prices, median rent, poverty rates, and sales taxes.

For those considering retirement options beyond Illinois, we recommend exploring our related guides: 10 Best U.S. Cities for Retirement and our breakdown of the Best and Worst States to Retire In.

Top 10 Cities to Retire in Illinois

Here’s how the top 10 cities in Illinois stack up for retirement.

1. Springfield, Illinois

• Share of population 65+: 21.8%
• Median home sale price: $147,350
• Median rent price: $945
• Poverty rate: 13.3%
• Sales tax: 9.75%

Springfield offers that perfect balance, a smaller city with suburban charm that doesn’t sacrifice access to amenities. As Illinois’ state capital, you’ll enjoy shorter commutes, cultural diversity, and pleasant Midwestern summers.

Roughly 21.8% of Springfield residents are 65+, making it one of the most retirement-friendly cities in Illinois. Housing is also affordable, with median home prices around $147,350 and a median rent of $945. That means your retirement savings can go much further here.

While the poverty rate sits at 13.3%, Springfield’s low cost of living and strong senior community make it a top contender for anyone looking to retire in Illinois.

2. Decatur, Illinois

• Share of population 65+: 22.6%
• Median home sale price: $102,250
• Median rent price: $823
• Poverty rate: 21.2%
• Sales tax: 9.25%

Decatur brings an urban vibe to central Illinois, faster-paced than its suburban neighbors but still far from the hustle of a major metro like Chicago. It’s a practical choice for retirees who prioritize socializing and city perks, without the high cost.

The median home price is just $102,250, and the median rent is around $823, one of the most budget-friendly cities in Illinois. The city also has a strong senior presence with 22.6% of residents aged 65+.

That said, Decatur’s poverty rate is 21.2%, the second-highest rate on our list. Financial stability can vary depending on the neighborhood, so it’s worth exploring the area before making a move.

3. Rockford, Illinois

• Share of population 65+: 19.9%
• Median home sale price: $165,000
• Median rent price: $956
• Poverty rate: 19.8%
• Sales tax: 8.75%

If you love spending time outdoors, Rockford could be your spot. With its parks, gardens, and scenic river pathways, there’s no shortage of places to enjoy nature at your own pace.

Rockford has a strong senior presence with 19.9% of its population aged 65+. It’s also one of the more tax-friendly cities, with a sales tax of just 8.75%, helping your day-to-day expenses stay a little more manageable.

The median home price is about $165,000, and the median rent is $956, offering good value compared to some of the pricier cities in Illinois.

One consideration: the city’s poverty rate is 19.8%, which is something to keep in mind when considering long-term financial stability.

4. Bloomington, Illinois

• Share of population 65+: 13.4%
• Median home sale price: $212,500
• Median rent price: $987
• Poverty rate: 8.2%
• Sales tax: 8.75%

Located between Chicago and St. Louis, Bloomington delivers the welcoming atmosphere and relaxed pace many retirees crave after years in fast-paced environments.

Housing in Bloomington remains affordable, with median home prices around $212,500 and the median monthly rent around $987. What truly sets Bloomington apart is its strong economic stability. Its 8.2% poverty rate is among the lowest on our list, suggesting a community where financial well-being is widespread.

Although Bloomington has a lot to offer, only 13.4% of its residents are 65 or older, which is lower than some other cities on our list. We recommend exploring Bloomington’s diverse neighborhoods to find the perfect place that matches your preferred retirement lifestyle.

5. Skokie, Illinois

• Share of population 65+: 23.6%
• Median home sale price: $440,000
• Median rent price: $1,504
• Poverty rate: 7.7%
• Sales tax: 10.25%

Just a stone’s throw from downtown Chicago, Skokie offers that rare combination many retirees dream about, peaceful suburban living with a short drive from city experiences.

Skokie has the highest senior population on our list, with 23.6% of residents aged 65 or older, making connecting with neighbors who may share similar lifestyles or interests easier. A low poverty rate of 7.7% also points to a stable, well-supported city.

However, retiring here comes at a price. The median home price is roughly $440,000, and the median rent is about $1,504, among the highest on our list. Add a 10.25% sales tax, and retirees can expect higher everyday costs, making Skokie a better fit for those with a more flexible retirement budget.

6. Peoria, Illinois

• Share of population 65+: 16.7%
• Median home sale price: $133,500
• Median rent price: $915
• Poverty rate: 23.8%
• Sales tax: 10%

Located along the Illinois River, Peoria combines waterfront views with a rich history that few Illinois cities can match. As one of the state’s oldest settlements, Peoria offers a distinctive character and slow pace that many retirees find refreshing.

Peoria stands out for its affordability, with a median home sale price around $133,500 and a median rent of $915, making it the second most affordable on our list.

It’s worth noting that only 16.7% of the city’s population is 65+, so the senior community here isn’t as large as the others on our list. Retirees should also consider the city’s poverty rate, which is 23.8%, the highest among the cities we analyzed.

7. Schaumburg, Illinois

• Share of population 65+: 20.4%
• Median home sale price: $325,000
• Median rent price: $1,841
• Poverty rate: 6.1%
• Sales tax: 10%

Tucked away in northeastern Illinois, Schaumburg blends small-town comfort with just enough city energy to keep things interesting.

Schaumburg has a strong senior presence, with 20.4% of its residents aged 65 and older. Schaumburg stands out for its financial stability, with the lowest poverty rate at just 6.1%.

However, housing here is on the higher end. The median home price is around $325,000, and the median rent is $1,841. Schaumburg could be an excellent choice for retirees who prioritize a polished environment with great amenities and can plan for the extra cost.

8. Palatine, Illinois

• Share of population 65+: 15%
• Median home sale price: $295,000
• Median rent price: $1,344
• Poverty rate: 6.3%
• Sales tax: 10%

Located in Chicago’s northwest suburbs, Palatine is a favorite for retirees who want an active community with plenty of parks, trails, and events to stay connected.

Financial stability is a significant advantage here. With a poverty rate of just 6.3%, Palatine ranks as the second most financially secure place on our list..

However, affordability is something to consider. Homes typically sell for a median price of $295,000, and the median rent is about $1,344. Combined with a 10% sales tax, your day-to-day expenses could stretch your budget more than you’d like.

9. Waukegan, Illinois

• Share of population 65+: 12.6%
• Median home sale price: $234,000
• Median rent price: $1,144
• Poverty rate: 13.3%
• Sales tax: 8.50%

Sitting along the shores of Lake Michigan, Waukegan offers retirees a waterfront lifestyle that few Illinois cities can match.

Beyond the natural attractions, Waukegan also offers the lowest sales tax on our list at 8.5%, helping to keep everyday costs more manageable.

Housing costs in Waukegan fall in the middle-to-upper range of our list, with median home prices around $234,000 and median rent at $1,144. It’s also worth noting that seniors make up just 12.6% of the population, the lowest on our list, which means you’ll be part of a more age-diverse community. 

10. Joliet, Illinois

• Share of population 65+: 12.7%
• Median home sale price: $285,500
• Median rent price: $1,340
• Poverty rate: 11%
• Sales tax: 8.75%

Rich in history dating back to the early 1800s, Joliet offers retirees a unique experience where the past blends in with the present.

Financial security is one of Joliet’s stronger points. With a poverty rate of just 11% and a sales tax of 8.75%, it offers more breathing room for day-to-day expenses compared to other cities in Illinois. Housing costs are also reasonably affordable, with median home prices around $285,500 and a median rent of $1,340.

Seniors make up just 12.7% of the population in Joliet, the second-lowest on our list.

See Where Your Illinois Community Ranks for Retirement

Didn’t see your city? Below is a ranking of the top Illinois cities we compared to find the best places for retirement.

Methodology

We focused on Illinois communities with at least 40,000 residents and compared the factors that matter most for retirement. That includes housing costs, poverty rates, tax burdens, and the percentage of older adults. Each factor was weighted based on how much it impacts everyday retirement life.

For the data, we pulled from trusted, up-to-date sources. Population, rent prices, and poverty rates came from the 2023 American Community Survey (1-Year Estimates). Home sale prices were based on Redfin’s February 2025 data, and sales tax rates came from Avalara.

Here’s how each factor contributed to the overall rankings:

• Percentage of Population 65+: 30% 
• Median Home Sale Price: 20% 
• Median Monthly Rent: 20% 
• Poverty Rate: 20% 
• Sales Tax: 10%

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Article sources

1. 2023 American Community Survey 1-Year Estimates
2. Redfin
3. Avalara