Most couples retiring in Evanston need between $1.4 million and $2 million in savings, depending on their lifestyle, whether they own their home outright, and when they claim Social Security. Evanston's cost of living runs roughly 18% above the national average, driven primarily by Cook County property taxes (typically $10,000-$18,000 annually on a median home) and Illinois's above-average healthcare costs. Social Security and any pension income meaningfully reduce the savings required.
Evanston is where our firm was founded and where we have served clients for nearly 50 years, so we know the cost of retiring here better than any spreadsheet. The city offers genuine walkability, world-class healthcare at NorthShore University HealthSystem, and a cultural richness that makes it an exceptional place to spend retirement. But it isn't a low-cost option.
The largest variable in an Evanston retirement budget is property taxes. Cook County property taxes on an Evanston home assessed at $400,000 typically run $10,000-$14,000 per year, and on higher-value properties, $16,000-$22,000. This is a non-negotiable fixed expense that doesn't go away and historically increases faster than inflation. Factoring this in before your retirement date is essential.
Healthcare costs are the second largest wildcard. Evanston has excellent access to NorthShore's hospital system and Northwestern Medicine nearby, but quality access costs money. Between Medicare Part B, a Medigap supplement, and Part D drug coverage, a couple should budget $6,000-$10,000 per year in healthcare premiums alone, rising over time.
The good news: Illinois doesn't tax Social Security benefits, pension income, or retirement account distributions. This makes the after-tax retirement income calculation significantly better than the headline number suggests, a $100,000 gross income in Illinois retirement carries a much lower tax burden than the same income in states like Wisconsin or Minnesota.
Key facts
- Evanston cost of living: approximately 18% above the national average, per CMAP 2024 data
- Cook County property taxes on a median Evanston home ($380,000-$500,000): typically $10,000-$16,000/year
- Illinois doesn't tax Social Security, pension income, or IRA/401k distributions
- NorthShore University HealthSystem (Evanston Hospital) is one of the top-rated hospital systems in the Midwest
- Metra/CTA access makes Evanston one of the most transit-accessible retirement communities in the Northern Suburbs
- Median home value in Evanston: approximately $420,000-$500,000 (varies significantly by neighborhood)
Should I stay in Evanston or move somewhere cheaper in retirement?
This is one of the most common questions we hear, and the answer is deeply personal. The financial case for relocating is real, leaving Cook County or Illinois entirely can save $15,000-$30,000+ per year in property taxes and state income tax (on non-retirement income). But most Evanston clients who genuinely love their community and have built their lives here, near family, near healthcare, near their social network, find the intangible cost of relocating isn't worth the financial savings. We model both scenarios with real numbers so you can make the decision clearly.
How do property taxes affect my retirement plan in Evanston?
Property taxes are treated as a fixed essential expense in your retirement budget, they must be covered before any discretionary spending. We account for Cook County's historical property tax growth rate (roughly 2-3% per year on average) when projecting 20-30 year retirement budgets, which means the $12,000 you pay today may be $18,000-$22,000 by the time you're 85. Homeowners who have paid off their mortgage often underestimate this ongoing cost.
