South Dakota Named a Top Spot for Low-Cost Retirement

If you’re considering retirement but worry about the high cost of living and housing, you’re not alone.

“The fear of outliving one’s retirement savings is growing now more than ever due to a myriad of factors,” Insider Monkey reported in its new list of the best states to retire in the U.S. for affordability. “Social Security funds are expected to deplete less than a decade from now, people are living longer and need more to survive, and Americans can save less in general due to the high costs of living in the country.”

The company used its previous rankings as a starting point and updated data on factors like cost of living, housing affordability, local taxes, and access to health care. States received an Insider Monkey score based on their performance in each category, with the highest scores ranked as “more advantageous for retirees looking to stretch their income during retirement.” 

And South Dakota emerged once again as one of the most affordable states for retirees. 

“South Dakota has previously topped our list of best states to retire in the US in 2024,” Insider Monkey explained. “It remains one of the most tax-friendly environments for retirees, with no state income tax and a low cost of living. The median home price of $320,900, coupled with its scenic landscapes and outdoor activities, makes it a top choice for those seeking tranquility and affordability.” 

As the site previously noted in 2024, South Dakota is absolutely brimming with outdoor adventure spots, including the Black Hills, Badlands National Park, and numerous lakes and rivers ideal for a leisurely day of fishing or boating, or more active afternoons of hiking and wildlife viewing. 

Furthermore, retirees will be in good company here, as about 18 percent of the state’s population is 65 or over. Earlier this year, South Dakota was also named the best state for single seniors.

As for this year’s top spot, that honor went to Wyoming. “The state’s very tax-friendly status, with no state income tax and a median home price of $275,000, makes it the most affordable option on the list,” Insider Monkey explained. “Its low cost of living, coupled with stunning natural beauty and wide-open spaces, offers retirees a peaceful and financially secure retirement.” 

Other states to consider include Florida at No. 3, followed by Tennessee (fourth) and Delaware (fifth).

See the full list of financially responsible destinations for retirement at insidermonkey.com.