Choosing a retirement location is one of the most important decisions you’ll make. If you choose somewhere too expensive, you’ll likely deal with some major financial stress that severely limits the enjoyment of your golden years. If you choose an area that doesn’t adequately meet your needs, your life satisfaction can drop. How can you make sure there’s an even balance between affordability and amenities? North Carolina and Illinois are some of the most popular retirement states due to affordability and access to a wide variety of amenities. Comparing the two can help you make a better decision about retirement destinations.
Cost of Living
Your retirement destination needs to be affordable. If you pay too much for housing, you could use up your retirement savings much too soon, leading to distress, home foreclosure, or worse. Consider the costs of gas, utilities, housing, and tax rates for a fuller picture.
North Carolina is considered a relatively affordable state to live in, with the average cost of living four to five percent lower than the national average. It’s highly affordable compared to more expensive states like California and New York. Housing and utilities are approximately two to four percent lower than the national average, while groceries and clothing are about the same. Rural areas will cost even less than major cities like Charlotte or Raleigh.
The cost of living in Illinois is slightly higher, considered on par with the national average. If you’re eyeing Chicago as a potential retirement location, expect to pay much more than the national average—it’s one of the most expensive cities in the country. Inflation has significantly increased the annual average a resident spends; it’s important to factor in inflation in your retirement goals. Groceries and healthcare are considered to be more expensive than the national average.
Healthcare
You’ll need access to frequent and high-quality healthcare when you retire. Older adults are not only more vulnerable to health concerns, but they also need more medications and preventative care. When comparing retirement destinations, healthcare should be a top priority.
North Carolina has some of the best healthcare in America in terms of accessibility and quality. Medical centers like Duke University and UNC Hospitals offer excellent physicians for many different patients. The Piedmont Triad provides access to many specialists and preventative care physicians, which are both especially important for retirees. Most physicians accept Medicare, but medical costs are considered quite high overall, even in assisted living or nursing home communities.
Illinois also features some renowned medical centers, especially when you consider large cities like Chicago. It doesn’t have the highest-rated healthcare compared to North Carolina, but it is more affordable, especially in rural areas. You’ll find the most doctors and specialists in Chicago, but demand also increases in highly populated areas, which can decrease quality. 62% of Chicago nursing homes have received an overall rating of below or much below average, so you’ll need to do thorough research before considering any healthcare option.
Retirement Taxes
When considering a place to retire, you’ll need to factor in taxes as a significant player when it comes to the cost of living. Not all states will tax your retirement income, which can help you save more.
In North Carolina, you may pay less to live there on average, but you will be subject to a retirement income tax for most sources of retirement income. If you own a home, property taxes are lower than the national average and considered affordable. You won’t have to pay any property taxes once you hit age 65 as a bonus.
If you don’t want any chance of your retirement income being taxed, Illinois will be a better choice in that department, as it doesn’t tax any. However, property taxes in this state are the highest in the country apart from New Jersey. Homeownership can be quite expensive here for that reason, and it should be factored into your financial plans.
Climate
The weather is an important consideration when choosing a place to live. Older adults are more vulnerable to temperature-related conditions. You’ll want to live somewhere comfortable!
North Carolina is considered to be mostly mild when it comes to weather and temperature. You’ll see seasonal changes, but they won’t be as dramatic. Its location in the South makes summers hot and humid, but winters are relatively mild for a more comfortable year-round experience. If you prefer warmer weather, North Carolina is a great choice.
Illinois has more dramatic seasonal changes. Its proximity to Lake Michigan and northern location creates winters that are very cold. Summers are also hot, and the humidity can be quite intense. If you prefer harsher winters and heavy snowfall, Illinois may be a better bet.
Things to Do
The state you retire in should be engaging for you. There should be plenty of amenities, attractions, and scenery relevant to your interests. Both North Carolina and Illinois host major cities and rural areas in between with a few differences.
North Carolina is a diverse bag of amenities and features. Large cities like Charlotte and Raleigh offer urban culture and rich art communities. In rural areas, there are hundreds of miles of national parks and forests for camping, hunting, and hiking. Towns like Carolina Beach and Atlantic Beach offer oceanside living and culture, while the Blue Ridge Mountains and Smoky Mountains offer stunning views for those who prefer such scenes.
If you crave an urban lifestyle, Chicago is one of the largest cities in the world. You’ll find no shortage of the arts, urban restaurants, and more here. While there are less mountains and beaches in Illinois, you’re not completely out of options. Shawnee National Forest has a lot of high-altitude terrain great for hiking and enjoying the views. Cities along the coast of Lake Michigan won’t offer views of the ocean, but lakeside amenities are just as enriching.
Conclusion
North Carolina is an excellent place to retire, with plenty of things to do, great healthcare, and decent affordability. Illinois has its perks too, with a lack of retirement income tax and access to Chicago’s vast amenities and resources. It can be difficult to narrow down the best location for you, but comparing the facts with your goals can make a major difference.