7. Peoria, Illinois

Perched along the beautiful Illinois River, Peoria is a classic Midwestern city offering big-city amenities at a fraction of the cost. The city boasts a beautiful riverfront, an impressive park district, a zoo, and numerous cultural institutions including a symphony orchestra and museums.

While Illinois generally has high property taxes, Peoria’s housing prices are so deeply affordable that your overall monthly housing payment remains very low. More importantly for your retirement budget, Illinois is one of the few states that exempts nearly all retirement income—including Social Security, 401(k) distributions, and pensions—from state income tax.

OSF Saint Francis Medical Center anchors the local healthcare system, providing excellent medical infrastructure for aging residents.