When you are in the market for a place to retire, there are plenty of options to choose from. Illinois represents a state with beautiful scenery, a variety of outdoor activities, and a buzzing arts and entertainment industry.
While that might be enough to have you signing on the dotted line to purchase your retirement home, there are some things you need to consider before deciding to retire in Illinois.
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Here is a glimpse at some important facts about retiring in Illinois that you should know before you commit to living out your golden years there:
1. Climate
Illinois butts up to Lake Michigan, which has a profound effect on the state’s climate, especially in the northeast. The lake helps to produce moderate temperatures due to its large thermal mass, leading to cooler summers and warmer winters.
Although summer precipitation is often suppressed, the lake-effect snow in the winter typically leads to increased snowfall. Additionally, the low-lying areas of the state are prone to flooding, which is the single most damaging weather hazard Illinois faces. Flood losses account for $257 million annually for over 30 years.
2. Retirement Income Taxes
Of the 50 states in the county, Illinois is one of 29 that does not tax Social Security benefits. Additionally,
according to Kiplinger, the state does not tax certain employee benefit plans including the following: 401(k)s; IRAs or traditional IRAs that have been converted to Roth IRAs; self-employment retirement plans; redemption of federal retirement bonds; distribution of lump-sum appreciated employer securities; state and local government deferred compensation plans; government retirement or disability plans, to include military plans; railroad retirement income; and retirement payments made to retired partners.
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3. Home Prices
The median cost of a home in Illinois is $147,900, which is a far cry from the national average of $170,100, making it an attractive retirement location. Homes in the state average nine years older than the average age of homes across the country.
The appreciation rate of homes in Illinois is 1.6 percent since June 2014, which is less than the national average of 4.9 percent. The slower appreciation rate means houses will remain more affordable for a longer period of time, which is great for anyone looking to retire there.
4. Cost of Living
The cost of living in Illinois is 4.4 percent less than the national average, which is a great draw for retirees on a fixed income. The cost of items such as clothing, entertainment, groceries, and repairs is also less than the national average and can help lessen the financial burden on retirees.
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