Illinois named among worst states in the US to retire, analysis finds. Here’s why
Illinois is among the 10 worst states to retire in the U.S., a recent analysis from CareScout, a network of long-term care providers.
CareScout’s “Best and Worst States to Retire in 2026,” published Jan. 5, ranked all 50 states and Washington, D.C., for retirement metrics such as cost of living, personal income tax rates, average Social Security income, health care access and more.
The report named Illinois the ninth worst U.S. state for retirees, and it isn’t the only analysis to describe the state as an undesirable place in which to retire.
A 2023 report from financial company SmartAsset named the Land of Lincoln the 44th best state to retire in the U.S., citing affordability and taxation rates as issues in the state.
CareScout’s report cited sources such as the U.S. Census Bureau, Missouri Economic Research and Information Center, Tax Foundation, federal Health Resources & Services Administration and others.
The data CareScout used from the Missouri Economic Research and Information Center found Illinois has roughly average cost of living, ranking in 24th. However, the state’s relatively high taxes contributed to its poor performance in the ranking, with a top marginal state individual income tax rate of 4.95%, compared to 4.7% in neighboring Missouri, and 3% in Indiana.
Two Illinois cities have among the highest property tax burdens in the nation, according to another recent report from SmartAsset, which put Aurora in seventh place and Elgin in 12th for the highest property tax burdens.
Tax preparation software company TurboTax has named Illinois among the states with the heaviest overall tax burdens, with 10.2% of typical residents’ incomes going to sales, income, property and excise taxes.
Illinois residents planning for retirement may need to save more than they anticipate needing. A 2024 report from finance website GoBankingRates found even $1 million is not enough for those who retire at the median age of 62 to live on for a 20-year retirement period.
Where are the best and worst places to retire in the US?
Here’s how the top 10 best states (including D.C.) to retire compared, according to CareScout:
1. Wyoming
2. New Hampshire
3. Vermont
4. Montana
5. South Dakota
6. Washington, D.C.
7. Florida
8. Alaska
9. Colorado
10. Minnesota
The report named New Jersey, Massachusetts, New York, Alabama, Mississippi, California, Kansas, Kentucky, Illinois and Oklahoma the 10 worst states for retirement.
Do you have a question about retirement or money in the metro-east or Illinois for the News-Democrat? We’d like to hear from you. Fill out our Metro-east Matters form below.
