This article looks at the 15 best places to retire in Michigan. If you wish to skip our detailed analysis of retirement in Michigan and ideal savings for retirees, you may skip ahead to 5 Best Places to Retire in Michigan.
Your idea of a perfect retirement might have been somewhere to the south, with plenty of sunshine and outdoor activities all year round. You wouldn’t be surprised to find out that many Americans share this ambition. According to Redfin Corporation (NASDAQ: RDFN), between December 2023 and February 2024, the top 5 states home-buyers looking to relocate searched on their platform were Florida, North Carolina, Arizona, South Carolina, and Tennessee.
Currently, Consumer Affairs reveals that over a quarter of the seniors in the US live in California, Florida, or Texas. In fact, Florida is such a popular retirement destination that 20.9% of the state’s population is comprised of seniors. However, given the popularity of the sunshine state among retirees, it’s possible that a dream retirement in Florida might be out of your budget, or soaking up the sun might not be your cup of tea. Updates from Redfin Corporation (NASDAQ: RDFN) note that median home price in Florida increased to $407,700 in February 2024, a 4.6% increase from the period in 2023.
Retirement in Michigan
In contrast, the state of Michigan remains one of the most affordable places in terms of median home prices. Per Redfin Corporation (NASDAQ: RDFN), the median home price in Michigan in February 2024 was 236,300, just 57% of the national median. Moreover, according to the Michigan Economic Development Corporation, Michigan is the 4th most affordable state in the US, with an average cost of living 10% below the national average.
Starting in 2024, the state of Michigan is set to repeal its retirement tax which was introduced in 2011. The law is said to take effect in March 2024, and will be phased-in over the 2023 – 2026 tax years. Once in place, retirement benefits such as pension, 401Ks, and IRA withdrawals will be exempt from Michigan state’s personal income tax rate. According to The Gander, this rollback will yield savings of $1,000 for over 500,000 households in the state.
Furthermore, if you are one of many Americans who feel they lack the savings to support a comfortable retirement, you might be enticed by Michigan’s new Working Families Tax Credit rates. Beginning in tax year 2023, the state has increased this rate from 6% to 30% meaning that working individuals with incomes below a certain threshold will be eligible for five times the tax credit in comparison to previous years. Thus, rather than being forced to live off retirement benefits, people who haven’t been able to save for retirement have an increased chance of accumulating some amount by the time they retire.
Michigan is also a great choice for retirees looking to extend their careers. According to Retirement Survey & Insights Report 2023 by The Goldman Sachs Group, Inc. (NYSE: GS), more than 60% of American workers say they expect to put back their retirement by at least a year, with 21% saying they expect it to be at least four years. Extending the date on which you start claiming your retirement benefits allows you to claim higher monthly payments and increase your savings in the process. Moreover, The Charles Schwab Corporation (NYSE: SCHW) recommends that increasing the age of retirement to 65 (when you will finally be eligible for Medicare) can help sustain savings which would otherwise be expended in favor of medical care. Furthermore, our article on 20 Best Places to Retire in the US highlights several benefits associated with retiring beyond the age of 62, including decreased death risk, regardless of the state of your health before retirement.
Ideal Savings for Retirees
Whilst there is no single value that defines the ideal amount for retirement savings, The Charles Schwab Corporation (NYSE: SCHW) recommends that the generic rule should be to retire with 25x your annual withdrawal for the first year of retirement. Since many people would be unsure of what this amount could be, The Charles Schwab Corporation (NYSE: SCHW) states that the average retiree can expect to spend 75% to 80% of their pre-retirement income to maintain their standard of living. However, this amount is variable depending on your propensity for savings as well as your retirement destination.
For many Americans, pooling savings for retirement isn’t panning out they way they would have envisioned. There are many reasons people struggle to save up enough money to fund their retirement dreams. According to The Goldman Sachs Group, Inc. (NYSE: GS), competing life priorities are a major reason for failure to accumulate retirement savings. Research from The Goldman Sachs Group, Inc. (NYSE: GS) has found that competing life priorities can reduce an average worker’s retirement savings by up to 37%. Furthermore, with increasing interest rates, higher mortgage rates, and growing inflationary pressures, it is possible that this impact might get worse.
Americans dealing with competing life priorities such as student loans or medical bills might be better off considering alternative retirement destinations once they retire. Michigan, with its status of being a top tax-friendly state for retirees, cheap housing and living costs, and a variety of bustling cities and tranquil lake towns, is an extremely alluring alternative to the likes of Florida and Nevada. Join us as we look at the best places to retire in Michigan. Alternatively, you might be interested in exploring our article on 20 Best Places to Retire in the US.
15 Best Places to Retire in Michigan
Methodology
To develop our list of best places to retire in Michigan, we initially picked out the most recommended places to retire in Michigan on the internet. We used 10+ sources including our own lists such best cities to retire in 2024 and Most Affordable Places to Retire in the U.S. in 2024, as well as external sources such as CBS, Wealth Tender, and Movoto to develop a shortlist. Further research was narrowed down to these places only. Among these best places to retire in Michigan, we developed a scorecard using metrics such as livability scores, cost of living, and median home prices. Livability scores were sourced from Area Vibes while Median home prices were obtained from Best Places. By standardizing these metrics on a linear scale, each place was scored, based on which we sorted our list in a descending order. The top 15 places were chosen as the best places to retire in Michigan.
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Here are 15 Best Places to Retire in Michigan.
15. Grosse Pointe Woods
Insider Monkey Score: 11.75
Livability Score: 84
Median Home Price: $302,500
IM Cost of Living: 95.9
Grosse Pointe Woods is a more rural alternative to the rest of the Grosse Pointes. The city has a very cheap cost of living and affordable home prices in comparison to other cities in the region. Thus, for retirees interested in owning their homes, Grosse Pointe Woods offers a peaceful and comfortable lifestyle and is one of the best places to retire in Michigan. Its proximity to Detroit allows residents to have access to major healthcare centers as well as recreation, whilst still being able to savor the benefits of being in a close-knitted community.
14. Kalamazoo
Insider Monkey Score: 11.81
Livability Score: 76
Median Home Price: $193,100
IM Cost of Living: 85.4
Kalamazoo is a very youthful retirement destination. The city is home to 6 colleges, meaning that the streets are bustling with a lively atmosphere. Moreover, there are also opportunities for seniors to engage in academic and intellectual pursuits, along with museums, galleries, and shopping spaces in the city center. Its cost of living and home prices are well below the US and the state averages, making it one of the best places to retire in Michigan.
13. Grand Rapids
Insider Monkey Score: 12.43
Livability Score: 83
Median Home Price: $247,900
IM Cost of Living: 96.8
Grand Rapids is one of Michigan’s largest cities in terms of population and also happens to be one of the most diverse. It offers plenty of hospitals, parks, and is home to the Gerald R. Ford Presidential Museum. Its low cost of living and dynamic lifestyle makes it one of the best places to live in Michigan, especially if you’re interested in a city lifestyle.
12. Ann Arbor
Insider Monkey Score: 12.46
Livability Score: 89
Median Home Price: $455,500
IM Cost of Living: 105.8
Ann arbor has the highest median home price out of all the places in our list, however, it is still one of the best places to retire in Michigan. Home to the University of Michigan, it is one of the most lively and youthful places in the state. It also has excellent healthcare facilities, courtesy of Michigan Medicine Hospital. There are also plenty of cultural and nature-oriented excursions for retirees to engage in.
11. Pleasant Ridge
Insider Monkey Score: 12.57
Livability Score: 90
Median Home Price: $404,400
IM Cost of Living: 104.9
Despite having more expensive housing and real estate in comparison to the rest of the state, Pleasant Ridge is one of the best places to retire in Michigan. There are many retirement communities in the city, allowing retirees to settle into a vibrant and interactive senior community. Although it is a suburb of Detroit, Pleasant Ridge is regarded as a much safer and comfortable alternative to the city of Detroit.
10. Holland
Insider Monkey Score: 12.98
Livability Score: 83
Median Home Price: $292,700
IM Cost of Living: 90.7
Holland has plenty of recreation and adventure for retirees to engage in. Apart from its Dutch heritage sites, the town hosts the Tulip Festival each spring, wherein visitors from neighboring counties visit acres of freshly bloomed Tulip gardens. Residents can also enjoy the sights and sounds of numerous state parks in the area and Lake Michigan. Thus, Holland is one of the best places to retire on the great lakes.
9. Petoskey
Insider Monkey Score: 13.27
Livability Score: 84
Median Home Price: $346,000
IM Cost of Living: 88.3
Petoskey is one of the most scenic destinations to retire in. Although home prices are higher than the state average, they are still significantly lower than the national average. In return, the city offers plenty of excursions for retirees to enjoy their golden years. Even though the city lacks the contemporary attractions and bustling lifestyle of a metropolitan, it makes for it through its picturesque hilltop views.
8.Lansing
Insider Monkey Score: 13.45
Livability Score: 79
Median Home Price: $127,100
IM Cost of Living: 87.3
Lansing is the capital of the state of Michigan and has a wealth of attractions for retirees. Home prices and the general cost of living in the city are much lower than the state average. It is also in close proximity to Michigan State University, owing to which the area has a vibrant and youthful energy.
7. Okemos
Insider Monkey Score: 13.71
Livability Score: 84
Median Home Price: $326,500
IM Cost of Living: 86.8
Okemos is located in the suburbs of Lansing and offers a dynamic lifestyle. The city has a rich local history and plenty of family-friendly recreation. At the same time, the Harris Nature Center has plenty of trails for hiking, camping, and wildlife watching. Although home prices in Okemos are higher than Lansing, they are still cheaper than the US average, making Okemos an affordable retirement destination.
6. Traverse City
Insider Monkey Score: 14.90
Livability Score: 91
Median Home Price: $394,900
IM Cost of Living: 93.9
Traverse City is located on the shores of Lake Michigan and is one of the best places to retire in Michigan. The city is famous for boasting many wineries, art galleries, and bistros, making it one of the most vibrant destinations in Michigan. It also hosts the Cherry Festival, an annual eight-day carnival in the harvest season during which people from around the region visit the city.
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Disclosure: none. 15 Best Places to Retire in Michigan is originally published on Insider Monkey.