The Cost To Retire Comfortably for 30 Years in the Midwest
By J. David Herman,
10 hours ago
Nastasic / Getty Images
The Midwest may not be the first region that comes to mind when you ponder possible retirement destinations . You’ll find a lot of wide-open spaces, but no oceanfront property. It also lacks the year-round warm temperatures that many retirees desire.
If you’re drawn to places with four distinct seasons, however, the Midwest may be worth a look. Other possible lures include affordability, loads of outdoor activities and plenty of lively college towns, as well as Midwestern friendliness and charm.
As you start your research, it’s worth considering how much it would cost you to live — and to live comfortably — in various Midwest states. The region includes 12 of them: Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin.
The annual cost of a comfortable living in Midwest states ranges from about $70,000 a year to about $90,000. For some perspective, consider how much a comfortable living would cost you each year in Hawaii: nearly $220,000. The Aloha State is by far the most expensive in the study, coming in well ahead of California (about $175,000 a year).
To give you a rough idea of the cost of living for retirees in each of these states, GOBankingRates has compiled figures for 30-, 20- and 15-year retirements. We determined the annual cost of living for retirees in each state, then doubled it to estimate the cost of living comfortably. We then penciled out totals for multiple years, with an emphasis on 30 due to increased lifespans. You can find our full methodology at the end of this story.
Total cost to live comfortably, 15 years: $1,060,588
Total cost to live comfortably, 20 years: $1,414,117
Total cost to live comfortably, 30 years: $2,121,176
Kansas
Total population: 2,937,150
Annual cost to live comfortably: $70,599
Total cost to live comfortably, 15 years: $1,058,981
Total cost to live comfortably, 20 years: $1,411,975
Total cost to live comfortably, 30 years: $2,117,962
Michigan
Total population: 10,034,118
Annual cost to live comfortably: $73,204
Total cost to live comfortably, 15 years: $1,098,061
Total cost to live comfortably, 20 years: $1,464,081
Total cost to live comfortably, 30 years: $2,196,122
Minnesota
Total population: 5,717,184
Annual cost to live comfortably: $88,968
Total cost to live comfortably, 15 years: $1,334,526
Total cost to live comfortably, 20 years: $1,779,368
Total cost to live comfortably, 30 years: $2,669,052
Missouri
Total population: 6,177,957
Annual cost to live comfortably: $73,286
Total cost to live comfortably, 15 years: $1,099,286
Total cost to live comfortably, 20 years: $1,465,714
Total cost to live comfortably, 30 years: $2,198,572
Nebraska
Total population: 1,967,923
Annual cost to live comfortably: $77,495
Total cost to live comfortably, 15 years: $1,162,422
Total cost to live comfortably, 20 years: $1,549,896
Total cost to live comfortably, 30 years: $2,324,844
North Dakota
Total population: 779,261
Annual cost to live comfortably: $78,576
Total cost to live comfortably, 15 years: $1,178,646
Total cost to live comfortably, 20 years: $1,571,528
Total cost to live comfortably, 30 years: $2,357,292
Ohio
Total population: 11,756,058
Annual cost to live comfortably: $73,164
Total cost to live comfortably, 15 years: $1,097,462
Total cost to live comfortably, 20 years: $1,463,283
Total cost to live comfortably, 30 years: $2,194,924
South Dakota
Total population: 909,824
Annual cost to live comfortably: $84,073
Total cost to live comfortably, 15 years: $1,261,102
Total cost to live comfortably, 20 years: $1,681,469
Total cost to live comfortably, 30 years: $84,073
Wisconsin
Total population: 5,892,539
Annual cost to live comfortably: $84,885
Total cost to live comfortably, 15 years: $1,273,281
Total cost to live comfortably, 20 years: $1,697,708
Total cost to live comfortably, 30 years: $2,546,561
Methodology: For this study, GOBankingRates found the cost of living for each Midwestern state as sourced from the Missouri Economic Research Information Center. For each state, the average expenditure costs for residents aged 65 and over were calculated using the national average expenditure costs (sourced from the Bureau of Labor Statistics Consumer Expenditure Survey). The average single-family home value was sourced from the Zillow Home Value Index. By assuming a 10% down payment and using the national average 30-year fixed mortgage rate (sourced from Federal Reserve Economic Data), the average mortgage was calculated. Using the average mortgage and expenditure costs, the total monthly and annual cost of living was calculated. These costs were doubled to determine numbers for “living comfortably” and figured for 15-, 20- and 30-year periods. An inflation rate of 2.53% was used (sourced from USInflationCalculator.com). An expected annual rate of return of 10.52% was used (sourced from Vanguard’s How America Saves). All data was collected on and is up to date as of September 16th, 2024.
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