Trying to pick where to retire? It's not an easy decision. Personal preferences come into play, from climate to being near the grandkids. Money matters, too, perhaps even more so. That's where we can help the most. We ranked all 50 states for retirement based on financial factors, figuring that the best states for retirees will offer low living costs and light tax burdens, as well as affordable health care options. We also favored states that are economically healthy and home to fit, active and relatively prosperous residents age 65 and over. After crunching all of the numbers, South Dakota ranked first on our list of the best states for retirement.
South Dakota: #1 Best State for Retirement
Population: 851,058
Share of population 65+: 15.2% (U.S.: 14.5%)
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Cost of living: 4% below the U.S. average
Average income for 65+ households: $43,712 (U.S.: $53,799)
Average health care costs for a retired couple: Below average at $415,297 (U.S.: $423,523)
Tax rating for retirees: Most Tax Friendly
The Mount Rushmore State might not be the first place that comes to mind when you dream of where to retire, but it's first place on our list. Affordability is the main factor pushing it to the top spot. In addition to low living expenses, including for health care, South Dakota is one the 10 Best States for Taxes on Retirees. And you can be confident it'll stay that way. The state ranks third in the country for fiscal soundness, according to a recent report from George Mason University's Mercatus Center, which indicates high confidence that it can keep up with short-term expenses and long-term financial obligations.
Learn more about how we ranked all 50 states for retirement including our methodology and data sources.
-
403(b) Contribution Limits for 2024retirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
-
SEP IRA Contribution Limits for 2024SEP IRA A good option for small business owners, SEP IRAs allow individual annual contributions of as much as $69,000 a year.
-
Roth IRA Contribution Limits for 2024Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
-
SIMPLE IRA Contribution Limits for 2024simple IRA The maximum amount workers at small businesses can contribute to a SIMPLE IRA increased by $500 for 2024.
-
457 Contribution Limits for 2024retirement plans State and local government workers can contribute more to their 457 plans in 2024 than in 2023.
-
Roth 401(k) Contribution Limits for 2024retirement plans The Roth 401(k) contribution limit for 2024 is increasing, and workers who are 50 and older can save even more.
-
Is a Medicare Advantage Plan Right for You?Medicare Advantage plans can provide additional benefits beneficiaries can't get through original Medicare for no or a low monthly premium. But there are downsides to this insurance too.
-
What You Must Know About the Different Parts of MedicareMedicare Medicare can be complicated but we've got you covered. Here is a quick guide to the different benefits provided through each part.
