10 Worst Cities for Retirees in the Midwest

Thinking about where to retire can be exciting. Perhaps you want to live in a warm beach town or move closer to family.

But not every city is a great place for retirees. In fact, as you craft your retirement plan, you might want to think twice before adding some of these Midwest towns to your list.

Michigan can be a beautiful state for outdoor activities. However, there are also places where it can be expensive to live.

Take Rochester, for example. This suburb of Detroit has a cost of living that is higher than the national average, with groceries costing more and housing costing much more than the national average, according to Payscale.

A survey found that Grand Forks — which is near the border with Minnesota — is one of the worst cities for retirement in North Dakota.

The survey, conducted by Advanced Dental Care, took into account factors such as the age of the population and access to health care.

One thing that could work against retiring in Wisconsin is the median age of residents, which is 40.6 years old. That compares to the U.S. median of 38.2 years. An older population could put an extra burden on services used by older residents.

The crime rate in Milwaukee can also be an issue compared to other cities in the Midwest, which may dissuade you from living in the city.

DeKalb is the home of Northern Illinois University. A city full of college kids may be less appealing to retirees.

While DeKalb is west of Chicago, it can take more than an hour to get into the city. That might be too much of a drive for retirees who want to enjoy nightlife and high-end restaurants when they retire.

Council Bluffs has some factors working against it if you are on a fixed income. For starters, the city has a higher cost of living than the state’s overall average.

Iowa also has tax laws that could affect your retirement income. The state partially taxes withdrawals from retirement accounts and income from pensions. However, Social Security income is not taxed.

Wichita has a low cost of living, but that may not be enough to make it an enticing place to retire. The city ranks low when it comes to access to health care, according to WalletHub. That could be an important factor as you age.

Kansas also partially taxes Social Security income, which could be an issue for retirees who rely heavily on Social Security to live comfortably.

Indianapolis seems like a good choice for retirees who want life in the big city. But the tax situation in Indiana is not the best for older residents.

Indiana taxes income you receive from retirement fund withdrawals or pensions, which can cut into your income after you retire.

Toledo doesn’t rank high on lists for retirees, and that is largely due to a lack of access to top-notch health care, according to WalletHub.

It’s also a good idea to factor in taxes when reviewing your retirement budget. You’ll need to be careful with your retirement account withdrawals, as they will be fully taxed in Ohio.

Crime could be an issue when considering a move to Omaha, as it has the highest crime rate of any city in Nebraska.

Omaha also doesn’t rank well when it comes to affordability. And you also face a lot of taxes when you retire in Nebraska.

The state fully taxes withdrawals from retirement accounts as well as income you earn from a pension. There are also taxes on Social Security income.

Access to quality health care is not the best in Springfield, WalletHub says.

Missouri also taxes retirement funds, which can eat into your income. Missouri fully taxes private pension income and partially taxes public pension income.

It helps to prepare for retirement years before you stop working. If you are looking to relocate, you might want to think twice about moving to the places on this list.

When you choose your new home, remember to factor in different costs, such as housing, groceries, and other expenses. Also, create a budget based on the savings and other retirement income you expect to bring in after you stop working.