Average Illinois state pensioner collects over $93K – nearly $25K more than working Illinoisans

Average Illinois state pensioner collects over $93K – nearly $25K more than working Illinoisans

Over 31,000 Illinois retirees earn six figures per year in retirement

CHICAGO (June 26, 2025) – As new career state workers enter one of the state’s five retirement systems next month, they are poised to join the average Tier 1 Illinois retiree in taking home $93,558 annually in retirement benefits.

According to new research from the Illinois Policy Institute, this is 36% higher, or $24,538 more, than the average working Illinoisan who earns $69,020.

Over 13% of the more than 239,000 retirees in Illinois’ five statewide government pension systems collect $100,000 or more in retirement, about 31,900 retirees last year. There were 327 retirees paid $250,000 or more.

“Illinois’ retired career state workers are on track to collect millions in lifetime benefits from generous state pension plans that neither the government nor public sector workers can afford. As a result, Illinois taxpayers have been forced to cover the difference, further straining Illinoisans’ budgets and threatening the security of the pension systems on which these state retirees rely,” said Patrick Andriesen, writer for the Illinois Policy Institute.

What to know about the state’s pensioners:

Retired career state employees will collect $2.48 million on average over the course of their retirement, despite contributions of just $128,840 by them and their employers – or getting $19 for every $1 contributed while they worked.
The average retired state pensioners retired at 58 and will recoup the contributions they and their government employer made during at least three decades in just 17 months at 2024 benefit rates.
Members of the State Employees Retirement System are estimated to collect the largest average return on their lifetime contribution – nearly $29 for every $1 invested.
The top 50 Illinois pensioners across the five state systems collected more than $18.3 million of the $13.2 billion in retirement benefits paid last year.
The average Illinois worker had saved only $609,230 for retirement as of 2022.

“State workers aren’t to blame for participating in a pension system they were promised. The real problem lies with politicians who traded overly generous benefits for political support, creating a system the state can’t afford,” said Bryce Hill, director of fiscal and economic research for the Illinois Policy Institute. “This kind of special-interest politics has put the retirement security of hundreds of thousands at risk and is undermining the government’s ability to serve the public. Illinoisans need change. It’s time lawmakers end the backroom deals and build a pension system that is fair, affordable, and sustainable for Illinois pensioners and taxpayers.”

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Experts at the institute recommend a hold-harmless pension reform plan that would protect earned benefits while allowing for changes in benefits not yet accrued. This would help eliminate state and local unfunded pension liabilities and achieve retirement security for government pensioners.

To read more about Illinois’ top pensioners, visit illin.is/sixfigurepensioners.