Moving from Illinois/Midwest to San Diego 55+

The Illinois Retirement Trap (Why You Actually SHOULD Move)

Illinois secret: Illinois taxes are brutal. Property tax is among highest in nation (2–2.5%). BUT Illinois exempts all retirement income (Social Security, pensions, IRAs).

Result: If your income is 100% retirement-sourced (Social Security + pension), Illinois taxes are minimal. But if you have investment income, property taxes kill you.

Cost Comparison

Key insight: If pure retirement income, Illinois property tax (2.2%) is MORE expensive than San Diego (1.20% property + 1–3% income tax on pension/investments).

The Real Illinois Trap

Illinois property tax is deceptively high: On a $800K home, you pay ~$17,600/year. On same home in San Diego, ~$10,000/year (property + estimated income tax).

Over 20 years: $150K+ difference in property tax alone.

Illinois "retirement exemption" only helps if you have zero investment income. Most retirees have some IRA/investment income, which means Illinois income tax kicks in.

Weather Reality

Illinois: Brutal winters (below freezing 5 months), humid summers, spring/fall changeable.

San Diego: Perfect year-round (70°F), no winter.

For 65+ body, brutal winters are medical risk (fall risk on ice, seasonal depression, HVAC stress).

Why Move to San Diego

• Property tax relief: 2.2% Illinois → 1.20% San Diego = real savings.
• Winter elimination: No ice, no heating bills, no seasonal depression.
• Weather = health: Year-round outdoor living reduces medical issues.

Why Some Stay

• Family in Midwest (grandkids, friends).
• Paid-off home with high equity (no mortgage helps with property tax burden).

Bottom Line

Illinois retirees have surprisingly strong incentive to move to San Diego: Property tax savings alone ($5K–$8K/year) = $100K–$160K over 20 years. PLUS perfect weather PLUS winter elimination.

Move if you can afford the home price ($1M+ range). Illinois property tax trap makes San Diego's costs rational.