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.
1. 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
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2. 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
3. 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
4. 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
5. 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
6. 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
7. 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
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8. 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
9. 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
10. 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
11. 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
12. 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
13. 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
14. 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
15. 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
16. 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
