The American Midwest is emerging as an attractive destination for retirees seeking both financial peace of mind and an enriched lifestyle. With significantly lower housing costs compared to coastal regions, daily expenditures such as groceries and utilities also remain well within budget. This allows retirees to fully embrace their golden years without constant financial worries. Investopedia and Travel + Leisure have meticulously compiled a list of the top 50 retirement locations across the U.S. for 2025, and ten Midwestern cities prominently feature, selected for their balanced offering of affordability, tax benefits, healthcare access, proximity to major transport hubs, and vibrant cultural scenes.
Midwest Gems: Affordable Living for Golden Years
For those contemplating retirement, the heartland of the United States offers an enticing blend of affordability and quality of life. From the tranquil plains of South Dakota to the bustling urban centers of Ohio and Michigan, retirees can discover communities that cater to diverse interests and budgets. This comprehensive overview highlights key cities across the Midwest, each presenting unique advantages for a fulfilling retirement.
Gregory, South Dakota: A Haven of Tranquility and Tax Savings
Nestled in the picturesque southeastern part of South Dakota, the small town of Gregory offers an exceptionally low cost of living, making it an ideal retreat for those prioritizing peace and quiet. With a median monthly housing cost of merely $589 and a median home value of $129,000, retirees can potentially own their homes outright, eliminating mortgage concerns. South Dakota’s absence of state income tax further enhances financial well-being, allowing retirees to retain a larger portion of their Social Security and retirement fund withdrawals. While Gregory provides a serene environment, convenient access to Eppley Airfield in Omaha, Nebraska, ensures connection to broader urban amenities when desired.
Toledo, Ohio: Urban Amenities Meets Budget-Friendly Living
Toledo, Ohio, a city of approximately 260,000 residents, strikes a balance between urban conveniences and affordability. The median home value in Toledo hovers around $155,200, and rental options often fall below $900 monthly. Located in Lucas County, the median monthly housing costs are $953. Residents benefit from attractions like a renowned zoo and an art museum celebrated for its European art and studio glass collection. Ohio also offers favorable tax policies for retirees, as Social Security benefits are exempt from state taxes, and monthly county taxes in Lucas County are around $513.
Poplar Bluff, Missouri: Nature's Embrace with Financial Ease
Situated in the Ozark Mountains' foothills, Poplar Bluff, Missouri, beckons outdoor enthusiasts with its proximity to Mark Twain National Forest, Lake Wappapello, and the Ozark National Scenic Riverways. The median home value in Butler County is $138,800, with average monthly transportation costs at $1,230 and food costs at $536. Missouri exempts Social Security benefits from state taxes, providing a financial advantage for retirees.
Corning, Iowa: A Small Town with Big Retirement Perks
Corning, Iowa, a charming town in Adams County, boasts remarkable affordability. The median home value stands at $116,900, while median monthly food costs are $589 and transportation costs are $1,455. Iowa offers significant tax breaks for retirees, exempting Social Security benefits and withdrawals from IRAs, 401(k) accounts, and pensions. Beyond financial benefits, Corning offers natural beauty and outdoor activities, including hiking, camping, fishing, and boating at Lake Icaria.
Farmington, Missouri: Community and Nature at an Affordable Price
Farmington, Missouri, with a population of 19,000, offers retirees a median home value of $155,100 in St. Francois County. Monthly expenses average $577 for food and $1,239 for transportation. Missouri's tax policies favor retirees by not taxing Social Security benefits. The city provides a range of amenities, including the Farmington Civic Center with recreational facilities, and direct access to the Mark Twain National Forest for outdoor pursuits. Additionally, Farmington is a gateway to the rich arts scene of St. Louis and Missouri's burgeoning wine country.
Youngstown, Ohio: A Cultural Hub in the Appalachian Foothills
Youngstown, a city in northeast Ohio within the Appalachian foothills, presents an appealing blend of cultural sophistication and low living costs. The median home value in Mahoning County is around $141,000, with monthly housing costs averaging $792. Food expenses are about $669, and transportation around $1,181 per month. Youngstown boasts cultural gems like the Butler Institute of American Art and the DeYor Performing Arts Center, home to the Youngstown Symphony Orchestra. The city also offers abundant natural beauty at Mill Creek Park and benefits from Ohio's tax exemption on Social Security income.
Bay City, Michigan: Quaint Charm and Waterfront Living
Bay City, Michigan, located on the Saginaw Bay, offers a tranquil small-city atmosphere with a surprisingly rich array of activities. The median home value in Bay County is $135,000, with monthly food costs for a two-person household around $588 and transportation costs at $1,193. The city's historic downtown features Victorian architecture, local shops, and restaurants. Cultural venues like the State Theatre and the Bay City Players offer year-round entertainment, making it an ideal spot for retirees seeking an engaging yet affordable lifestyle.
Mason City, Iowa: A Rich Cultural Scene and Low Expenses
Mason City, a medium-sized city in north central Iowa, combines a vibrant cultural scene with an attractive cost of living. Home to Music Man Square, the Charles H. MacNider Art Museum, and the historic Frank Lloyd Wright-designed Park Inn Hotel, the city offers numerous cultural events. The median home value in Cerro Gordo County is $154,100. Monthly housing costs for a couple are $866, food costs are $650, and transportation is $1,258. Iowa’s tax policies are highly favorable, with no state taxes on Social Security benefits or retirement fund withdrawals.
Saginaw, Michigan: Active Social Life and Budget-Friendly Homes
Saginaw, Michigan, a city of about 43,000 residents, forms part of the Greater Tri-Cities region. It offers a lively social scene for retirees, with various senior centers organizing regular community activities. Recreational options include the Saginaw Valley Rail Trail and several golf courses. Summer events at Ojibway Island and the Friday Night Live concert series foster a strong sense of community. The median home value in Saginaw County is $139,400. A two-person household can expect to spend $866 on housing, $1,211 on transportation, $588 on groceries, and $591 on taxes.
Muncie, Indiana: University Town Charm with Economic Advantages
Muncie, Indiana, a vibrant college town located northeast of Indianapolis and home to Ball State University, provides retirees with a rich array of cultural events and entertainment. The David Owsley Museum of Art, Muncie Civic Theatre, and Emens Auditorium contribute to a dynamic arts scene. Housing in Delaware County is particularly affordable, with a median home value of $127,600. Monthly food costs are $579, transportation costs are $1,180, and housing expenses average $821 per month. While Indiana does not tax Social Security benefits, withdrawals from other retirement accounts are subject to state taxes.
The Midwest offers an appealing prospect for retirees: a chance to live comfortably and enjoy a rich life without the financial strain often found elsewhere. Each of these cities presents a unique set of attractions, from quiet rural settings to vibrant cultural hubs, all united by a common thread of affordability and a high quality of life. For those looking to maximize their retirement savings and embrace a fulfilling lifestyle, the Midwest stands out as a premier choice.
