Retiring in Lake Forest

Lake Forest makes a real, data-driven case for retirement: a genuinely elevated senior population share, Illinois's substantial statewide exemption of all retirement income, in-city hospital access, and a genuine large-lot estate character.

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A real, genuinely elevated senior population share

Lake Forest's senior (65+) population share is real and sourced in a 24.3%-26.7% range depending on source -- meaningfully above the roughly 16.8% national average -- with a median age of 46.1 years, at least as high as Highland Park's, its North Shore sibling documented alongside it in this buildout.

Illinois's real, substantial retirement-income exemption

Illinois taxes NONE of a retiree's Social Security, pension (public or private), or 401(k)/IRA income, with no age or income threshold -- a real, substantial benefit that applies identically in Lake Forest as anywhere in the state (see illinois.js).

In-city hospital access and a genuine estate-community character

Lake Forest hosts a Northwestern Medicine-system hospital within city limits, and its large-lot, lakefront-estate character gives retirees genuine space and privacy distinct from a denser downtown-anchored community.

The real cost trade-off retirees must budget for

Lake Forest's genuinely high home values and its high dollar property tax bill (median $16,682/year, even at a comparatively low 1.87% rate) are a real, substantial cost retirees on a fixed income should budget for directly, even with Illinois's retirement-income tax exemption offsetting income-side taxes.

Key takeaways

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Last reviewed: 2026-08-25. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.