This cold Midwestern city was ranked third-best in the US for retirees — but it has a major drawback, and it isn’t the weather

What could possibly possess a retiree to choose to spend their Golden Years learning to ice fish and prepare hotdish, all while the average wintertime low drops to an average of 8 degrees (and the average high is only about 24)?

Here’s what’s got the post-work set flocking to the Twin City region — and why it may never replace Florida as the go-to retirement destination.

What makes a city great for retirees

Deciding where you want to live when you retire can feel overwhelming. From weather to work and taxes to transit, there’s a whole host of factors to weigh when planning where to set your next chapter. And money is often one of the biggest considerations for older Americans.

“It’s important to choose wisely when picking where to retire, as many retirees are on a fixed income,” Chip Lupo, a Wallethub analyst said in the report.

But it’s not the only factor to consider. As Lupo adds, the top cities for retirees also provide high-quality health care, along with plenty of options for retirees to occupy their suddenly open schedules.

What makes Minneapolis so attractive

So what makes Minneapolis so great for retirees? Life there simply costs less. In fact, according to Payscale, the city is 6% more affordable than the national average.

The savings run across the board — housing is 14% below the U.S. average and utilities are 5% lower — making it more attractive for older adults on a fixed income compared to, say pricier beach towns in Florida.

As for how you’d spend your time in Minneapolis — or as it’s sometimes known, the City of Lakes — from hiking to swimming, there are plenty of options for retirees looking to stay active and outdoorsy. It doesn’t suffer for culture either with the Minneapolis Sculpture Garden and the Minneapolis Institute of Art, which hosts tens of thousands of pieces in its collections.

And of course you can’t forget the Mall of America — the country’s second-largest shopping mall — also makes its home in Minneapolis.

What’s the catch then?

But there are downsides

Sure, Minnesota can be chilly in the weather, but you know what they say — if you don’t like the weather, just wait an hour. And you can always get used to bad weather if you’ve got the right kind of clothing.

One thing many seniors may never get used to though, is how much of your nest egg ends up going to the state. While Florida has no state income tax and Arizona has a flat income tax of 2.5%, Minnesota has four state income tax brackets for all residents on top of federal income tax from 5.35% to 9.85%.

Retirees in Minnesota could also face state taxes on their Social Security benefits, though the state has significantly cut the controversial levy. As of 2023, the Minnesota government says 75% of retirees in the state pay no tax on Social Security benefits.