Settling Down in the Heartland: Your Guide to Retiring in Iowa

A Bankrate survey ranked Iowa to be the top state to retire in last year. This had many wondering, ‘Why Iowa?”

When it comes to choosing a retirement destination, wealthy individuals often have a plethora of options at their disposal. From bustling cities to exotic locales, the choices can seem endless.

However, amidst the array of possibilities, there’s one hidden gem that stands out as a surprisingly perfect choice: Iowa. While it may not boast the glitz and glamor of some other destinations, Iowa offers a unique blend of charm, affordability, and quality of life that makes it an ideal retirement destination.

Learn more in our comprehensive guide to retiring in Iowa.

Why Is Iowa the Best State to Retire In?

In 2023, Iowa ranked 20th nationwide in the percentage of the population age 65 and older, at 567,581 people. Here are the top four reasons why.

1. Affordability

One of the most compelling reasons for wealthy individuals to retire in Iowa is the state’s affordability. Iowa offers a 5% lower cost of living than the national average, without compromising on quality. Housing prices are also notably affordable, at 17% lower than the national average, allowing retirees to stretch their dollars further and enjoy a higher standard of living.

Additionally, Iowa has a very favorable tax environment. Iowa has lenient inheritance tax laws which are set to be fully repealed by Jan. 1, 2025, with gradual annual decreases until then. Lineal descendants are exempt, but siblings face 1-2% rates and other relatives face 2-3% rates, with amounts over $100,000 facing the highest rate. Estates under $25,000 are exempt, and gifts made within three years of death may be subject to the tax.

2. Quality of Life

Beyond affordability, Iowa boasts a high quality of life that’s sure to appeal to wealthy retirees. The state is renowned for its friendly Midwestern hospitality, tight-knit communities, and a strong sense of civic pride.

Iowa is known for its natural beauty, with many parks, forests, and lakes for retirees to explore. The state is home to more than 70 state parks and recreation areas, including the popular Maquoketa Caves State Park. Iowa is also home to several scenic rivers and lakes, such as the Mississippi River, which provides opportunities for fishing, boating, and other water activities.

Whether you’re exploring charming small towns, attending cultural events and festivals, or simply savoring the natural beauty of the countryside, Iowa offers a fulfilling and enriching retirement experience.

3. World-Class Healthcare

For wealthy retirees, access to high-quality healthcare is a top priority. Fortunately, Iowa is home to some of the best medical facilities in the nation and healthcare providers renowned for their excellence and innovation.

From top-ranked hospitals to cutting-edge research institutions, Iowa offers comprehensive healthcare services that rival those found in larger urban centers. Whether you’re seeking routine medical care, specialized treatments, or preventive services, you can rest assured knowing that Iowa has you covered.

4. Retirement Communities

Retirement communities can be an ideal option for retirees seeking a more active and social lifestyle. Iowa has numerous retirement communities, each offering unique amenities and services to help meet the needs of its residents. Depending on your needs, certain retirement homes will provide various social activities. Some may offer swimming pools, and golf courses to keep residents engaged and entertained.

For retirees who require specialized care, Iowa offers retirement communities that cater to their unique needs as well. These communities provide personalized care and support while helping to ensure that residents continue to enjoy an active and engaging lifestyle. With a variety of retirement community options available in Iowa, retirees can choose the perfect place that meets their specific requirements and preferences to make their golden years comfortable and fulfilling.

Where Are the Best Places in Iowa to Retire?

When it comes to the best cities in Iowa to retire in, several stand out for their unique combination of amenities, affordability, and quality of life. Here are some top contenders:

- Des Moines: As the capital city of Iowa, Des Moines offers retirees a vibrant urban lifestyle with a small-town feel. It boasts a thriving arts and cultural scene, including museums, theaters, and galleries, as well as numerous parks and outdoor recreational areas. Des Moines also has excellent healthcare facilities, a low cost of living, and diverse housing options, making it an attractive choice for retirees seeking an active and engaging retirement.
- Iowa City: Home to the University of Iowa, Iowa City is known for its dynamic intellectual and cultural environment. Retirees can take advantage of lifelong learning opportunities, cultural events, and recreational activities tailored to a diverse range of interests. Iowa City also offers a strong sense of community, with numerous volunteer opportunities and social gatherings. Additionally, the city’s low crime rate and high-quality healthcare services make it a safe and desirable place to retire.
- Dubuque: Situated along the Mississippi River, Dubuque offers retirees a picturesque setting with historic charm and modern amenities. The city boasts a thriving arts and cultural scene, including museums, galleries, and theaters, as well as numerous outdoor recreational opportunities, such as hiking, boating, and fishing. Dubuque also offers affordable housing options, access to top-quality healthcare services, and a strong sense of community, making it an appealing destination for retirees seeking a relaxed and scenic retirement lifestyle.
- Ames: Home to Iowa State University, Ames offers retirees a vibrant college-town atmosphere with a strong sense of community. The city presents a wide range of cultural and recreational amenities, including museums, theaters, and parks, as well as numerous shopping and dining options. Like most other Iowa cities, it has a low crime rate, affordable housing, and excellent healthcare services, Ames provides a safe and welcoming environment for retirees to enjoy their golden years.
- West Des Moines: This suburb of Des Moines is known for its safe and family-friendly environment, as well as its low cost of living. West Des Moines offers numerous parks and trails, a variety of shopping and dining options, and a strong sense of community.
- Humboldt and Clear Lake: OK so these destinations weren’t listed on the survey, however, we aren’t ashamed to say we love our two humble towns. Nestled between the east and west forks of the Des Moines River, Humboldt offers a family aquatic center, Recreation Center, Carnegie library, hometown theater, harness racing, golf and 17 area parks. Bike, hike or ride snowmobiles on the Three Rivers Trail system or enjoy the Des Moines River water trail. The residents and visitors enjoy the unique events found in Clear Lake. Whether you’re a local resident or planning for an upcoming vacation, never miss out on the fun events in Clear Lake, Iowa! Enjoy fun all year long, from 5K races and car shows to the Color the Wind kite festival, 4th of July festival, Harvest Festival, Thursdays on Main, Christmas by the Lake, and more.

Planning for Your Retirement in Iowa with Johnson Wealth and Income Management

Starting your retirement journey can be both exciting and daunting, especially when considering where to spend your golden years. For those eyeing Iowa as their retirement destination, having professional financial guidance can make all the difference in helping ensure a smooth transition and a secure financial future.

At Johnson Wealth and Income Management, we specialize in helping individuals plan for retirement in Iowa, offering tailored strategies and personalized advice to help you navigate this important life milestone with confidence. Here are some of the strategies we can assist you with:

Tailored Retirement Planning: At Johnson Wealth and Income Management, we understand that each retiree’s financial situation is unique, requiring a customized approach to retirement planning. Our team of experienced financial advisors takes the time to get to know you, your financial goals, and your vision for retirement in Iowa. Whether you’re dreaming of downsizing to a cozy home in the countryside or enjoying the amenities of an active retirement community, we work closely with you to develop a comprehensive retirement plan that aligns with your aspirations and priorities.
Maximizing Your Retirement Income: One of the key challenges retirees face is ensuring they have enough income to sustain their desired lifestyle throughout retirement. At Johnson Wealth and Income Management, we help you maximize your retirement income by leveraging a range of investment strategies tailored to your risk tolerance, time horizon, and income needs. From managing investment portfolios to creating sustainable withdrawal strategies, our financial advisors are dedicated to helping you make the most of your retirement savings.
Navigating Tax and Estate Planning: Tax planning and estate planning are critical components of retirement preparation, and our team at Johnson Wealth and Income Management is well-versed in navigating these complex areas. We work proactively to minimize tax liabilities, maximize tax-efficient investment strategies, and help ensure your estate plan reflects your wishes and provides for your loved ones. Whether you’re exploring tax-saving opportunities unique to Iowa or establishing a comprehensive estate plan, our financial advisors are here to guide you every step of the way.
Ongoing Support and Guidance: At Johnson Wealth and Income Management, we understand that retirement planning is an ongoing journey, requiring consistent review and adaptation. Our dedicated team of advisors is committed to offering continuous support, proactive portfolio management, and personalized guidance to keep you on course toward your financial objectives. We’ll schedule regular check-ins to assess your progress, address any shifts in your circumstances or goals, and refine your retirement strategy as needed. Whether you seek assistance with investments, tax planning, or retirement income, our team is readily available to help provide the tailored support and peace of mind you deserve.

Final Thoughts

Retiring in Iowa offers a wealth of opportunities for retirees seeking a peaceful and fulfilling lifestyle, and with the guidance of Johnson Wealth and Income Management, you can approach this new chapter with confidence and peace of mind. From personalized retirement planning to helping you maximize income and navigating tax and estate considerations, our team is committed to helping you achieve your retirement goals and enjoy the best that Iowa has to offer.

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