How Much to Retire in Chicago, IL (2026)
Cost-of-living index 107 (US avg = 100). Comfortable retirement costs ~$55,640/yr · Nest egg target ~$1.4M.
Retirement spending tiers
National baselines adjusted for Chicago's COL index (107 vs 100 US average). Nest egg uses the 4% safe withdrawal rule (annual × 25).
Small apartment, cook at home, public transit, minimal travel
1BR apartment, dining out occasionally, one modest vacation/year
2BR home, regular dining out, two vacations/year, newer car
Owned home, frequent travel, generous entertainment budget
Upscale home, luxury travel, golf/clubs, full-time help
Monthly budget breakdown by tier
Estimated monthly allocation across spending categories
| Category | Modest | Comfortable | Premium | Affluent | Luxurious |
|---|---|---|---|---|---|
| Housing | $941 | $1,530 | $2,207 | $3,237 | $5,149 |
| Food | $428 | $696 | $1,003 | $1,471 | $2,341 |
| Healthcare | $399 | $649 | $936 | $1,373 | $2,185 |
| Transport | $342 | $556 | $803 | $1,177 | $1,872 |
| Leisure | $399 | $649 | $936 | $1,373 | $2,185 |
| Misc | $342 | $556 | $803 | $1,177 | $1,872 |
| Total / month | $2,853 | $4,637 | $6,688 | $9,808 | $15,604 |
Nest egg targets
How much you need saved to fund each lifestyle, using the 4% safe withdrawal rule
| Tier | Annual spend | Monthly spend | Nest egg (4% rule) |
|---|---|---|---|
| Modest | $34,240 | $2,853 | $856K |
| Comfortable | $55,640 | $4,637 | $1.4M |
| Premium | $80,250 | $6,688 | $2.0M |
| Affluent | $117,700 | $9,808 | $2.9M |
| Luxurious | $187,250 | $15,604 | $4.7M |
Chicago retirement context
Frequently asked questions
How much money do you need to retire in Chicago?
For a comfortable retirement in Chicago, plan on roughly $55,640/year ($4,637/month). That requires a nest egg of about $1.4M using the 4% safe withdrawal rule. A modest lifestyle costs ~$34,240/year, while a premium lifestyle runs ~$80,250/year.
Is Chicago a good place to retire?
Chicago has a cost of living close to the US average (index 107). Retirement budgets here are fairly typical — neither a bargain nor a budget-buster.
How is the retirement cost calculated for Chicago?
Each tier starts from a US national baseline and is scaled by Chicago's cost-of-living index (107 vs 100 US average). Nest egg targets use the 4% safe withdrawal rule (annual spend × 25). The budget allocation assumes roughly 33% housing, 15% food, 14% healthcare, 12% transport, 14% leisure, and 12% miscellaneous.
Deep-dive by tier
Spending estimates adjusted by BLS cost-of-living data · 4% safe withdrawal rule (Bengen 1994) · 2026 estimates · For general guidance only