Best States For Military Retirement: Why South Dakota Stands Out

The Challenge of Choosing a Place for Military Retirement

Military families are pretty used to moving from community to community. But when it comes to retiring, it can be difficult to decide where you want to live the rest of your life. For many military retirees, it has everything to do with job opportunities and state tax policies on military benefits.

Many retirees are also looking for the best medical care, because they may be dealing with post-traumatic stress disorder or physical disabilities. Other military retirees are dealing with homelessness and may need a strong social services net to rely on.

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Top-Ranked States Supporting Military Retirees

All of these factors and more were taken into account by WalletHub in its latest study on the Best and Worst States for Military Retirees.

The states that ranked higher made the adjustment to military retirement much easier and more supportive than the states at the bottom. That means financially as well as caring for retirees' mental and physical needs.

South Dakota rounded out the top 10 with many things pointing to positives as far as military retirees choosing our state as a place to put down roots.

No state income tax. South Dakota is one of a small number of states with no personal income tax at all, meaning military retirement pay, pensions, Social Security, and many other forms of retirement income are not taxed by the state.
Property tax relief for disabled veterans. South Dakota offers significant property tax exemptions for permanently and totally disabled veterans and certain other disabled veterans. Surviving spouses may also qualify in some cases.
No estate or inheritance tax. That can help retirees with long-term financial and estate planning.
Lower cost of living. Housing prices and everyday living costs are generally lower than in many coastal or Sun Belt retirement destinations.
Outdoor lifestyle and quality of life. Hunting, fishing, hiking, the Black Hills, and wide-open spaces appeal to many retirees seeking quieter communities and recreational opportunities.

The Top 10 Best States for Military Retirees:

South Carolina
North Dakota
Wyoming
New Hampshire
Maryland
Alaska
Florida
Massachusetts
Minnesota
South Dakota

For many military retirees, the combination of tax savings, affordability, and veteran-friendly policies makes South Dakota stand out nationally.

Sources: Wallet Hub and Military.com

Here's my list of Not-So-Typical, but Awesome Things to See in Sioux Falls.

Dives Worth a Drive in South Dakota, Iowa and Minnesota

Almost every small South Dakota town has a watering hole. It’s where the locals go to kick back a few brews and engage in conversation.

Some of these establishments are located in buildings almost as old as the town itself. There might be a fresh coat of paint on the walls or new vinyl on the booth seats, but the ambiance is still reminiscent of a good ol’ dive.

If you think a "dive" is all about the sketchy clientele, the smell of the Devil’s lettuce, and stale Grain Belt, you’d be wrong. Not every dive has a bad reputation.

What makes a dive, a dive?

A dive has character. Neon beer signs and local memorabilia adorn the walls.

You might find a pool table, dart board, and a few video lottery machines.

The bartender knows the regulars by name and they know what you drink.

Some dives don't even serve food except for bags of chips and pickled eggs that sit in a jar of brine on the bar.

Dives aren't fancy. You might see 70's-style wood panels on the walls and wobbly tables leveled with a folded napkin.

Finally, the bathrooms. The bathrooms in dives are in a class by themselves and could be a whole topic on its own.

There are several small-town dives in our area with friendly faces, cheap booze with a burn, and even really good food! We use the term "dive" in the most affectionate way.

Here are some of the best and why you should go there.

Gallery Credit: Karla Brown