Free retirement calculator tailored for Illinois (IL). Calculate instantly with state-specific rates and rules.
Despite Illinois's well-publicized pension funding problems, retirees actually benefit from the state's complete exemption of retirement income from state income tax. However, high property taxes — among the highest in the nation — can significantly impact retirees who own homes.
| Data Point | Value |
|---|---|
| Average Retirement Savings (55-64 age group) | $155,000 |
| Median Household Income | $72,205 |
| Illinois Tax on Retirement Income | Illinois is one of the most retirement-friendly states for taxes. |
Illinois is one of the most retirement-friendly states for taxes. All pension income and Social Security are completely exempt from Illinois state income tax. Illinois has a flat 4.95% income tax rate, but retirement income is entirely excluded.
The average Illinois household nearing retirement (ages 55-64) has approximately $155,000 in retirement savings. Financial planners commonly recommend having 10-12x your final salary saved by retirement age. For the median Illinois income of $72,205, that suggests a target of roughly $722,050 to $866,460.
Use CalcuWealth's retirement calculator to model your specific situation — including your expected Social Security, any Illinois pension, and your investment portfolio — to find your personal retirement number.
Data: US Census Bureau ACS 2023, Zillow (2024), Vanguard How America Saves (2023), NCES. Updated 2024–2025. Figures reflect state averages — consult a licensed financial advisor for personalized guidance.
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