Illinois ???

[wrigley]

An interesting comparison-
We are retired in one of the distant suburbs of Chicago. A couple we are friends with had retired from the same company about the same time, lived only a mile from us. our financial situations were/are very similar. They did the math carefully and calculated that their overall cost of living would be about $500/month less near Phoenix (Chandler). So they moved, partly because of family there.

After they'd been there about 3 years, I asked about the cost of living comparison. They said it was a tie, overall living expenses there are the same as ours. Our high property taxes are offset, as others said, by no state tax on pensions/SS.

DW and I enjoy spending a couple of months each winter in AZ or FL, but don't want to live there.
YMMV

Chicago and the surrounding suburbs are great places in the summertime. You are fortunate in that you can escape during the winter months for warmer climates which makes the small amount of time spent in the Illinois winter bearable. I have family in Naperville, Park Ridge, Tinley Park, Darien, and Chicago. 24 years ago when I retired form the military my plan was to move back to Chicago to be near my family and where I grew up. It didn't pan out at the time and I was disappointed. After living in Florida for the past 29 years, I'm glad the Chicago move didn't pan out. As my siblings age they are all planning an "Illinois Escape" to warmer climates with the exception of my mother. She jokes that she will be buried in the frozen tundra of the Chicago area where she was born. "To each his own."

Mike

 

[GenXguy]

As my siblings age they are all planning an "Illinois Escape" to warmer climates with the exception of my mother. She jokes that she will be buried in the frozen tundra of the Chicago area where she was born. "To each his own."

Most people just talk about it, but they never leave, and if they do, they usually end up moving back.

 

[militaryman]

We have been retired for 12 years.

There are so many other important ingredients, IMHO, to the choice of a retirement location.

From my perspective the most important is how you like it, how you fit in, how it suits your lifestyle and your connection to relatives, friends, healthcare, etc.

Tax advantages would be fairly low on my list. Could be a decider when it comes down to the final pick on two or three equals of a short short list.

No point in saving tax dollars if you are not going to be happy OR if you would be much happier living somewhere else.

For us, at our age, is not about the money. It is about the experiences and the happiness.

After all...it is only money. And you cannot take it with you.

Thank you! Lots of truth and things to consider. The above resonates with me in many ways, however... I have lived in the NE, the SE, the Mid-West and as a retired military member I have gotten around a bit. Being "happy" has had less to do with the geography in my experience although there are certain extremes that are more desirable to be avoided.
Heard a story once where a guy entered a diner and sat down to have breakfast and explained to the waitress that he was new in town and wanted to know if this was a friendly town to live in. The waitress asked where he was from and did he find the place he was coming from friendly. He replied that he was from XYZ and Yes, he found the town he was moving from very friendly and hospitable. She replied, "I think you'll find our town to also be very friendly and hospitable"
So while I am definitely taking all things into consideration as we plan retirement locations I am also balancing which aspects have been more important factors than others. I know I can spend a very large portion of my retirement funds being in an "ideal" location but I am not convinced that this is going to move the "happiness needle" as much as having those funds to spend on other categories. I certainly do not have unlimited funds and while "it is only money. And you cannot take it with you." ---- It is money, and it doesn't grow on trees
I am just using this thread to glean all I can about Illinois after I found out they do provide an unusual collection of benefits for disabled vets (NO Prop Tax) as well as retirees collecting Pensions/SS and/or sourcing 401K funds (NO State tax)

So far it has definitely been enlightening and informative, Thanks everyone!

 

[FLJim]

illiNOis!

This is all great food for thought! Still very tempting to have the possibility of $700/mo more in our discretionary budget. Right now I'm paying $5400 in property tax and when I retire I would be saving about $3k more in Illinois due to no taxing of pensions and 401k withdraws.

Trying to retire before 57 when we'd still be able to travel allot and do things and having the extra margin money would suit those needs fine. After all these responses I am thinking perhaps a much simpler home that cost about half what I currently have (and invest the equity) so upkeep & maintenance are simple so we can feel good to "arm, lock and leave" for our next adventure whenever. Also having a small amount invested in Illinois real estate would limit my exposure to any loss if we did need tho exit the state for any reason. Of course if we're not going to invest much in a home then the property tax exemption is not AS big a deal. Maybe there are several other states that have no tax on pensions and 401k withdraws.

Born & raised in a Chicago suburb. Retired at 62. We moved to Florida and could not be happier. No state income tax, real estate taxes are about 1% of market value, reasonable sales tax. (No state income tax also in TN & TX if those states appeal to you.) Illinois is circling the drain due to 1-party rule. Taxes on everything will be going up, and the tax breaks you are counting on might just disappear. As others have said, there is more to retirement than just avoiding taxes. How you spend your days far outweighs the few dollars you spend or don't spend.

 

[Bamaman]

When we were looking to move 30 mos. ago, we found the centrally located Nashville area to be a very happening place--incredibly fast growing. However we found real estate in Huntsville to be 1/2 the price, and property taxes on a $450K home are just $1,100 per year. Because my wife is disabled, we have zero property taxes. There are also no state income taxes on defined pensions or social security.

I spent 3 years after college living in the Midwest. We said it was as flat as Arkansas with little or no recreation. Late summers it was a sea of corn. It snowed one Christmas was knee deep and we didn't see 32 degrees for a month. We'd often hit Indy on weekends where my wife loved to shop. Thankfully we were just 265 miles from Nashville, and we'd often go home some weekends.

In our retirement years, we want to live in a moderate 4 season climate. Not too cold and snowy. We like small towns just outside of larger cities. And it's nice to have some hills/mountains if possible. Since my family always had a lake house, we love the water--especially if there's a golf course close by. And since I retired so young, an ultra low cost of living is especially important. We've found it all where we live.