Why This Missouri River Town Is Turning Into a Top Spot for Active Retirees in 2026

Key Takeaways

The cost of living in Pierre, South Dakota, is lower than the national average, with median home values and rents significantly less than those in other states.
South Dakota has no state income tax, making the state capital a great place to stretch your retirement dollars.
From hiking and hunting to museums and heritage centers, Pierre offers something for every retiree.

Pierre, South Dakota, lies in the center of the state, and is among Investopedia’s top places for retirees for 2026. Pronounced “peer,” Pierre is the second-smallest state capital in the United States. This small city is located in Hughes County on the eastern bank of the Missouri River, nestled within the Great Plains near the Missouri Plateau and the Cheyenne River Reservation. If you’re a retiree who wants to scale down to small-city life in a tax-friendly locale with access to different outdoor activities, Pierre can be a great option.

Small-City Living and Community

Pierre has a population of about 14,000, making it a very small, tight-knit community. It’s also a fairly young city—the median age was 39.8 in 2023, according to Data USA. Other findings as of 2024, according to the U.S. Census Bureau: The median household income was $74,053.

Pierre is described as a “friendly community” with tree-lined streets, making it a great place to find a sense of belonging for retirees. Being in the state capital, the city’s local government says it cares about its residents because it “listens to their concerns, and acts on those concerns to improve the city for everyone.”

It’s pretty easy to get around Pierre with a compact downtown, with the state capitol right in the center. But you will need a car, as public transportation is limited. You can find some private transport companies offering services in Hughes County.

Pierre has a regional airport with scheduled commercial flights. It provides the state capital and residents with access to flights for retirees with wanderlust, and is especially important for visitors during hunting season. You can connect to or drive to busier South Dakota airports in Rapid City or Sioux City for larger and long-haul flights.

How Affordable Is Pierre?

The cost of living in Pierre is about 11% lower than the national average. Here’s a breakdown of some of the most important costs you can expect:

The average home value in the city was $286,723 as of Dec. 31, 2025, compared to the national average value of $357,275. The median listing price was $303,333 in Pierre and $396,267 in the U.S.
Renters can expect to pay 40% less than the national average: $1,195 in Pierre compared to $1,995 nationally.
Families tend to spend 19% less on groceries than the national average.
The average electric bill is $98.90 per month, which is lower than the national average of $147.16.
Gas costs the same in Hughes County as the national average, $2.84 per gallon, as of Jan. 15, 2026.

South Dakota doesn’t have a state income tax, so all of your retirement income stays in your pocket. Any retirement accounts with taxable withdrawals, including 401(k)s and traditional individual retirement accounts (IRAs), aren’t taxed by the state. The same applies to your Social Security benefits.

Sales and Property Taxes

The sales tax in South Dakota is 4.2%. Property taxes were slightly higher in Hughes County, at a rate of 1.1425%, than the average state rate (0.99%).

Living an Outdoor Lifestyle

If you’re looking for recreational activities to enhance your time during retirement, Pierre has a lot of outdoor activities. The city has nine public parks and over 50 miles of trails and pathways to explore. These include LaFramboise Island Nature Area, Lewis & Clark Trail, and Farm Island Recreation Area.

You can also take advantage of the two outdoor swimming pools and two ice skating rinks, along with the golf and disc golf courses in the area. There are plenty of opportunities to kayak, paddleboard, camp, fish, hunt, and scuba dive.

Culture and Local Attractions

For a small city, there are a lot of things to do in and around Pierre. Visit the state capitol in the heart of downtown. The building is Neoclassical with statues, artwork, and stained glass. The grounds also have memorials for World War II, the Korean War, and the Vietnam War.

Local attractions include the South Dakota National Guard Museum, which houses relics, memorabilia, and historical documents from the guard’s activities and missions. Explore the area’s history by visiting the South Dakota Cultural Heritage Center, interactive displays at the Lewis & Clark Family Center, and science exhibits at the South Dakota Discovery Center.

If you’re looking to whet your palate, the city has more than 30 restaurants and bars, including a few national chains and locally owned establishments.

Healthcare Options for Residents and Retirees

Because access to healthcare is important for folks in retirement, it's important to note that there is one main hospital in Pierre. Avera St. Mary’s Hospital is the largest in a 100-mile radius, offering inpatient and outpatient services. There’s also an Access Health clinic, provided through Rural Health Care Inc., for underserved rural communities in neighboring Fort Pierre. The clinic provides different services, including telemedicine, radiology, immunizations, and acute and chronic disease care. You can also access additional services in Sioux City, which is 240 miles southeast of Pierre.

Climate and Seasons

You’ll find hot summers in Pierre, while the winters are typically freezing. Snow and wind are common during the winter months. The temperatures range between 12 and 90 degrees, so you’ll need a good mix of winter and summer clothing.

The hottest months of the year run from June to September. Expect the cold season to last between November and March. June typically sees the most rain, and December experiences the most snowfall during the year.

The Bottom Line

Retiring to a small city like Pierre, South Dakota, can offer many benefits. The cost of living is lower than the national average, and the lack of a state income tax can help you keep more money in your pocket. With its small population, Pierre can give you the small, tight-knit community you may be seeking if you’re looking to get away from big-city crowds and congestion. If you’re an outdoor enthusiast, you’ll love the recreational activities, and the attractions will give you good insight into the region’s culture and history. Make sure you have a car, though, because it can be challenging to get around with very few public transit options.