8. Iowa City, Iowa
If you want to retire to the Midwest, Forbes says Iowa City is the place to be. As home to the University of Iowa, the community has enough college kids and amenities to keep you feeling young. It has been named a UNESCO City of Literature, a plus particularly if you’ve been meaning to write the great American novel when you retire. The cost of living here is average, and Iowa exempts Social Security from state income tax while offering a state income tax break for pension income.