Is South Dakota a good place to retire

The Great Plains region is proud to include the richly diverse and stunningly gorgeous state of South Dakota. Throughout the state, retirees enjoy a lower cost of living compared to the national average, so you’ll get the joy of seeing your hard-earned retirement savings stretch further in South Dakota. That leaves more funds available for things you treasure the most, like fun experiences and entertaining outings with visiting grandchildren and family members.

Speaking of entertaining outings, South Dakota is overflowing with things to do. From outdoor seasonal activities such as fishing, hiking, boating, and more, to an abundance of creatively curated museums and art galleries, you’ll find something you love here. And if you can’t find it in your corner of the state, you can reach other areas in less than a day’s drive; from Edgemont in the southwestern corner to Sisseton in the northeast is less than an 8-hour trip by car.

Who wouldn’t love retiring to this lovely state? Well, if you’re not crazy about winter weather, you’ll probably want to look farther south, since most of South Dakota gets at least 30 inches of snow each year and some parts can reach 70 inches or more. What’s more, you can see some pretty extreme lows—below 10℉—between December and February. Finally, if you’re in love with the ocean or need at least a “great lake” nearby, you might want to look elsewhere, since South Dakota is truly landlocked.

But if you’re a fan of winter weather and you love the natural beauty of the Great Plains, check out the following top ten South Dakota cities to retire to this year.

Sioux Falls

CITY POPULATION: 196,528

SHARE OF POPULATION 65+: 12.9%

COST OF LIVING FOR RETIREES: 11.4% lower than national average

MEDIAN INCOME: $61,738

TAX RATING FOR RETIREES: Slightly better than national average

Located on the southeastern edge of the state, Sioux Falls is the state’s largest city and an outdoor lover’s paradise. With over 70 parks, you can indulge your passion for hiking, biking, and a host of outdoor sports (think baseball fields, tennis courts, and more) nearly year round. Other activities in Sioux Falls are as varied as the rock formations in the Big Sioux River. Check out the vibrant downtown sculpture walk that’s accessible all year long.

Winter weather may change the nature of your outdoor activities, but Sioux Falls only gets an average of 38 inches of snowfall each winter. That’s more than some cities, to be sure, but not so much that you’ll be housebound for weeks on end. The average area temperatures range from a July high of 84 to a chilly 6 degrees in January.

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Rapid City

CITY POPULATION: 76,184

SHARE OF POPULATION 65+: 18.3%

COST OF LIVING FOR RETIREES: 7.1% lower than national average

MEDIAN INCOME: $53,760

TAX RATING FOR RETIREES: Slightly better than national average

With its healthy population size and large population of retirement-age adults, Rapid City offers a lively yet suburban vibe and a variety of things to do to keep you active and involved in your new community. From the famous Mount Rushmore located about half an hour’s drive outside town to the collection of bronze life-size statues of the U.S. Presidents, Rapid City is a great place to meet American history in an up-close and more immediate way. Take the grandkids to visit the giant Aldabra tortoises who live at Reptile Gardens and the wide variety of Great Plains animals at Bear Country USA, a drive-through park where you can spot bison, wolves, reindeer, and elk in addition to brown and grizzly bears.

The weather in Rapid City is fairly similar to Sioux Falls, so anticipate a few winter weather events during the year, and a wide range in temperatures. All in all, most of South Dakota outside of the Black Hills region gets fairly seasonable weather, while the Black Hills area gets significantly more snow and lower temperatures throughout the year.

Mitchell

CITY POPULATION: 15,631

SHARE OF POPULATION 65+: 20.1%

COST OF LIVING FOR RETIREES: 12.3% lower than national average

MEDIAN INCOME: $45,318

TAX RATING FOR RETIREES: Slightly better than national average

Check out Mitchell’s Prehistoric Indian Village with a collection of relics and an active archaeological dig site to learn more about the region’s first inhabitants. Another great place to learn more about the northern Plains nations is at the Dakota Discovery Museum. Enjoy swimming all year long at the indoor Aquatic Center or go antiquing at the Second Impression Antique Mall. You can even practice your escape skills at Mitchell’s escape rooms. If you’re looking for more outdoor activities, check out Lake Mitchell. It’s a man-made reservoir located just outside the downtown area that provides the city with drinking water as well as a beautiful spot for outdoor recreation. Visit the Lake Mitchell campground, or explore the nearby hiking and biking trails. You can even rent bikes and boats seasonally (usually mid-May through mid-September) when weather permits.

Vermillion

CITY POPULATION: 11,802

SHARE OF POPULATION 65+: 9.7%

COST OF LIVING FOR RETIREES: 12.6% lower than national average

MEDIAN INCOME: $43,750

TAX RATING FOR RETIREES: Slightly better than national average

Situated on the banks of the Missouri River, Vermillion is a small town that delivers a large variety of artistic, cultural, and historical experiences for new residents and guests alike. Golfers will enjoy The Bluffs, an upscale 18 hole championship course with exceptional views. Explore the Vermillion River Trail as a hiker or biker; for especially breathtaking views, try it at sunrise or sunset.

Vermillion’s weather is roughly in line with the majority of the rest of the state, except that the temperatures stay a little warmer (up to an average high of 88 ℉ in July) and there’s not quite as much snow on the ground (30 inches, compared to 38 inches elsewhere). Still, winters get cold and windy, so prepare for some truly chilly days.

Aberdeen

CITY POPULATION: 28,324

SHARE OF POPULATION 65+: 17.6%

COST OF LIVING FOR RETIREES: 21.4% lower than national average

MEDIAN INCOME: $56,455

TAX RATING FOR RETIREES: Better than national average

Aberdeen is currently classified as the third largest city in South Dakota, which drives home the point that this Great Plains state isn’t about the bustling big city vibe. Rather, it embraces the beauty and intimacy of the smaller towns and cities. Aberdeen is a great example of that, boasting a strong city-wide sense of connection together with family-oriented activities, both indoors and outdoors, and some impressive amenities. With 14 public parks available to residents and their guests, one hospital bed for every 154 residents, and truly seasonable year-round weather, Aberdeen offers a stable, close-knit community for retirees and their visiting families to enjoy.

For outdoor activities even the grandkids will enjoy, check out Wylie Park and its theme park, Storybook Land, complete with medieval castle, miniature train, and even a balloon ride. If you’re looking for slightly more adult recreation, look at Richmond Lake, offering camping, swimming, boating, birdwatching, canoeing and fishing opportunities. Enjoy live music performances from local and regional musicians and bands through the city’s Summer Concert Series.

Pierre

CITY POPULATION: 14,000

SHARE OF POPULATION 65+: 17.2%

COST OF LIVING FOR RETIREES: 13.7% lower than national average

MEDIAN INCOME: $68.263

TAX RATING FOR RETIREES: Slightly better than national average

Even though it’s the second-smallest capital city in the U.S. in terms of total population (behind Montpelier, Vermont), Pierre has a lot to offer people who want to stay involved and active in community life after retirement. Explore the contemporary recreation of a Native American dwelling together with Sioux tribe artifacts and exhibits at the Cultural Heritage Center, which is built into the side of a large hill. Tour the Oahe Dam and power plant between Memorial Day and Labor Day, Wednesdays through Saturdays.

Walk through the Trail of Governors, showcasing life-size bronze statues of past South Dakota governors, and pay tribute to fallen first responders at the Flaming Fountain. You can also explore La Framboise Island, connected to the downtown area by a causeway for pedestrians only.

Watertown

CITY POPULATION: 22,722

SHARE OF POPULATION 65+: 17.8%

COST OF LIVING FOR RETIREES: 18.1% lower than national average

MEDIAN INCOME: $52,145

TAX RATING FOR RETIREES: Better than national average

Watertown is located between Lake Kampeska and Pelican Lake, and is the fifth largest South Dakotan city according to the 2020 census results. The Lake Kampeska shoreline offers great walking and hiking opportunities, as well as access to disc golf, two golf courses, beaches, fishing, boat landings and camping access.

If colorful history is your thing, you can dig into the city’s Mafia ties—Al Capone made use of the Watertown railway for his criminal enterprise, as bootleggers made use of Watertown’s underground steam heat tunnels to elude capture during Prohibition. Cap off your explorations with a visit to the Glacial Lakes Distillery or the Watertown Brewing Company for an adult libation of your choice.

Yankton

CITY POPULATION: 15,453

SHARE OF POPULATION 65+: 20.8%

COST OF LIVING FOR RETIREES: 15% lower than national average

MEDIAN INCOME: $54,278

TAX RATING FOR RETIREES: Slightly better than national average

Perched right across the state border from Nebraska, in the southeastern corner of South Dakota, Yankton’s name came from the Dakota word for “the end village.” It’s also sometimes called the “River City” since it’s situated on the banks of the Missouri. With a rich, exciting history to mine and access to water- and land-based outdoor activities, Yankton has a lot to offer retirees and their families. No matter what your preferences and hobbies, you’re sure to find something to keep you busy here.

The Yankton art community is robust and active, as well. Explore Yankton’s Downtown Public Art displays, including murals and sculptural pieces, or at the G.A.R. Hall Gallery. Catch a show at the Dakota Theater or Yankton Opera House. Explore the artifacts and curated displays at the Mead Cultural Education Center to learn more about the American West. You won’t run out of things to do and enjoy in this lively town.

Huron

CITY POPULATION: 14,231

SHARE OF POPULATION 65+: 18.1%

COST OF LIVING FOR RETIREES: 20% lower than national average

MEDIAN INCOME: $48,374

TAX RATING FOR RETIREES: Better than national average

Currently the eighth largest city in South Dakota, Huron was named after the Huron Indians and is currently home to the state fair, which is currently held about a week prior to Labor Day. The state fairground also plays host to a speedway with seasonally-held races and other events. You’ll also enjoy taking the grandkids to the local mini golf establishment or the Splash Central water park when weather permits.

Outside these facilities and events, Huron is somewhat quieter than other similarly sized towns and cities on our list, so it might not be the best choice for you if you crave a more active and socially oriented lifestyle. However, with a cost of living that’s significantly lower than the national average, you’ll enjoy seeing your hard-earned retirement savings work harder for you.

Brandon

CITY POPULATION: 10,950

SHARE OF POPULATION 65+: 10.4%

COST OF LIVING FOR RETIREES: 4% lower than national average

MEDIAN INCOME: $93,536

TAX RATING FOR RETIREES: Slightly better than national average

Only 17 minutes from Sioux Falls but over four hours from the nearest big city (that’d be Minneapolis), Brandon is located in the northern section of the state. As is true of much of South Dakota, it offers a wide variety of outdoor activities and sports to occupy your time when the weather permits. Explore McHardy Park and its 50-foot observation tower, softball field, volleyball court and fishing in the summer, or slide down some pretty fun hills in the winter—or just watch the grandkids do the sledding, then take them out for hot chocolate or some other treat at one of the area’s several restaurants or cafes.

If you like golf, check out the 18-hole, 71 par Brandon Golf Course. You might also enjoy cheering on one of the many baseball association teams, offering play for everyone from Little League through American Legion at Aspen Park. If racing appeals to you, you’ll appreciate Huset’s Speedway that also offers a fairly large campground.

Which City Should You Retire In?

South Dakota is ideal for retirees who are seeking a quieter, more outdoors-oriented way of life but still crave some excitement, history, and culture along the way. With its smaller cities, lower cost of living, and incredible natural beauty, many retirees will find at least a few places they’d enjoy as full-time residents.

The best bet is to pick a few towns that seem ideal to your interests and preferences, then schedule a trip to explore them in person. Once you get a feel for a city or town and what it has to offer, you’ll find it easier to make the right decision.

Final Thoughts

Consider carefully your retirement plan when you’re choosing a city or town for your retirement. Cost of living, tax considerations, and available resources should all bear on your decision to some extent, and how much you have saved for retirement bears strongly on each of these factors. And if you don’t have a retirement plan yet, let's build a workable retirement plan for you together.

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