The Midwest presents a compelling option for retirees seeking an enhanced lifestyle without the burden of high expenses. This region boasts reasonable housing costs and a generally lower cost of living compared to many other parts of the United States. This financial advantage provides significant breathing room, allowing retirees to fully enjoy their golden years. All the cities featured in this analysis offer median home prices well under $200,000. Furthermore, every dollar spent stretches further, whether on daily groceries or engaging entertainment. Many Midwestern states also implement tax policies favorable to retirees, further safeguarding their savings. Beyond finances, the region offers quality healthcare infrastructure, with world-class medical centers and robust regional hospitals even in mid-sized cities. Culturally, Midwestern metropolitan areas are vibrant, providing a diverse array of arts, recreation, and abundant access to nature. This ensures that whether one prefers the bustle of city life or the tranquility of a small town, there are locations to suit individual interests and retirement budgets.
Midwest Beckons Retirees: A Deep Dive into Affordable and Enriching Destinations
A recent collaborative study by Investopedia and Travel + Leisure, released for 2025, has pinpointed ten exceptional Midwestern locations ideal for retirement. These cities and towns, spanning South Dakota, Ohio, Missouri, Iowa, Indiana, and Michigan, were selected based on crucial factors including income tax policies, proximity to major airports, accessibility to quality healthcare, and a rich array of cultural activities. The paramount criterion, however, was affordability, ensuring that each destination offers a low cost of living coupled with amenities that enhance retiree enjoyment.
Gregory, South Dakota, a small community of approximately 1,200 residents in the southeastern part of the state, stands out for its remarkably low housing costs, with a median monthly expense of just $589. The median home value in Gregory County is $129,000, presenting a unique opportunity for retirees to potentially purchase a home outright. Adding to its appeal, South Dakota imposes no state income tax, allowing retirees to retain more of their Social Security benefits and withdrawals from retirement accounts. Despite its quiet charm, Gregory offers a peaceful lifestyle with occasional access to larger cities via Eppley Airfield in Omaha, Nebraska.
Moving eastward, Toledo, Ohio, a larger city with around 260,000 residents, offers a median home value of $155,200, with rentals often available for under $900 per month. Toledo provides the advantages of urban living, including a renowned zoo featuring polar bears and an aquarium, alongside a distinguished art museum celebrated for its European art collection and a significant glass art studio movement. Ohio also provides tax relief for retirees, exempting Social Security benefits from state taxation, and Lucas County, where Toledo is situated, boasts affordable monthly property taxes averaging $513.
Further south, Poplar Bluff, Missouri, nestled in the Ozark Mountains foothills, is a haven for nature enthusiasts. With a median home value of $138,800 in Butler County, it offers access to the Mark Twain National Forest, Lake Wappapello for water activities, and the Ozark National Scenic Riverways with its pristine springs and caves. Missouri does not tax Social Security benefits, though other retirement income may be subject to taxation.
In Corning, Iowa, a small town of 1,465 residents, life is exceptionally budget-friendly. The median home value in Adams County is an inviting $116,900. Iowa's tax policies are particularly attractive, with no state tax on Social Security benefits or withdrawals from IRAs, 401(k)s, or pensions. Beyond its financial benefits, Corning is recognized as the birthplace of Johnny Carson and provides abundant outdoor recreational opportunities at numerous parks and Lake Icaria.
Farmington, Missouri, a city of 19,000, offers a median home value of $155,100 in St. Francois County. Daily expenses are manageable, with monthly food costs averaging $577 and transportation costs at $1,239. The city provides a wealth of amenities for its size, including the Farmington Civic Center with indoor pools and courts, and immediate access to the Mark Twain National Forest. For cultural excursions, the vibrant St. Louis arts scene and Missouri's wine country are within easy day-trip distance.
Youngstown, Ohio, a city with a rich industrial history, is increasingly recognized for its retiree-friendly environment. Located in the foothills of the Appalachian Mountains, Mahoning County boasts a median home value of $141,000 and median monthly housing costs of $792. Youngstown provides a unique blend of small-town atmosphere and urban sophistication, highlighted by the free-admission Butler Institute of American Art, the DeYor Performing Arts Center, and cultural events hosted by Youngstown State University. The city also features extensive green spaces like Mill Creek Park, and Ohio does not tax Social Security income.
On the shores of Saginaw Bay, Bay City, Michigan, presents a charming small-city experience with a low cost of living. Bay County's median home value is around $135,000. The city captivates with its historic downtown Victorian architecture, local shops, and a thriving arts scene at the State Theatre and the Bay City Players, Michigan's oldest community theater. Monthly expenses, including housing and transportation, remain affordable, similar to other cities on this list.
Mason City, Iowa, a medium-sized city in north-central Iowa, offers a surprisingly rich cultural landscape for its size. Home to Music Man Square, the Charles H. MacNider Art Museum (with free admission), and the historic Frank Lloyd Wright-designed Park Inn Hotel, the city provides ample artistic and historical engagement. Cerro Gordo County’s median home value is $154,100, and like Corning, Iowa, it exempts Social Security benefits and retirement account withdrawals from state taxes.
Saginaw, Michigan, a city of 43,000 residents along the Saginaw River, stands out for its vibrant social scene for retirees. Saginaw County offers numerous senior centers with regular activities, along with recreational options such as the Saginaw Valley Rail Trail and various golf courses. The median home value is $139,400, offering excellent value. Seasonal events like those at Ojibway Island and the Friday Night Live concert series foster a strong sense of community.
Finally, Muncie, Indiana, a college town home to Ball State University, offers an abundance of cultural events and entertainment options, including the free David Owsley Museum of Art, the Muncie Civic Theatre, and performances at Emens Auditorium. Delaware County features a median home value of $127,600, making housing highly affordable. While Indiana does not tax Social Security benefits, withdrawals from other retirement accounts are subject to state taxation.
These Midwestern cities and towns collectively demonstrate that a comfortable and engaging retirement is within reach, providing a balance of financial prudence, community engagement, and cultural richness.
Retirement Redefined: Finding Value and Vitality in the Heartland
This comprehensive overview of affordable Midwestern retirement destinations offers a refreshing perspective on life after work. It challenges the conventional wisdom that a fulfilling retirement necessitates expensive coastal living or high-tax havens. The key takeaway is the immense value proposition of the Midwest: not only does it offer significant financial advantages through lower housing costs and favorable tax policies, but it also provides a rich tapestry of cultural experiences, vibrant communities, and abundant natural beauty. For me, this report highlights the importance of looking beyond popular narratives and exploring regions that truly prioritize quality of life and financial stability for seniors. It's a reminder that a comfortable retirement isn't just about accumulating wealth; it's about strategically choosing a location that maximizes that wealth's purchasing power while offering a diverse range of activities and a supportive environment. The emphasis on community, accessibility to healthcare, and cultural engagement in these towns demonstrates a holistic approach to retirement planning, emphasizing well-being alongside financial prudence. This research provides a valuable roadmap for anyone dreaming of a retirement filled with freedom, enjoyment, and peace of mind.