Retiring in Montana: a complete guide
Learn about top locations, age-related benefits, and important financial considerations for retiring in Montana. You can also match with a financial advisor by answering a few simple questions below.
Summary
Montana has a large retirement population, with over 65s making up approximately 17% of the population.
Bozeman, Missoula, and Helena rank high on the list of best places to retire in Montana.
While Montana has a great cultural scene and stunning natural environment, it has limited job opportunities for those seeking part-time work in retirement.
Unbiased can match you with a financial advisor who can help you plan and save for retirement.
Where is the best place to retire in Montana?
If Montana is your chosen retirement state, here are some of the best places to retire:
Is Montana a good place to retire?
According to data from the U.S. Census Bureau, in 2023, Montana had a population of approximately 1.1 million people. Over 20% of the population was over the age of 65, making it a state with a relatively large retirement population.
Located in the western region of the United States, Montana offers a unique retirement experience for those seeking a peaceful and natural environment with access to outdoor activities, cultural events, and a four-season climate.
With its stunning landscapes, mountains, and small towns, Montana is a popular destination for retirees who enjoy a slower pace of life.
Unlike other states, however, Montana taxes retirement income. Which could be a drawback for those looking to retire in the state.
What are the pros and cons of retiring in Montana?
When deciding where to retire, it's vital to weigh up all of the advantages and disadvantages to ensure you make the right decision.
Here are some key pros and cons to get you started:
The pros of retiring in Montana:
Natural environment: Montana is known for its natural beauty, with breathtaking landscapes, national parks, and forests. Retirees can enjoy living in a peaceful environment that offers plenty of opportunities for outdoor activities such as hiking, camping, fishing, and skiing.
Small towns: Montana is home to many small towns that offer a friendly and tight-knit community feel. Retirees can enjoy a slower pace of life while still having access to amenities such as shops, restaurants, and medical care.
Cultural scene: Montana has a vibrant cultural scene, with numerous museums, galleries, and performing arts venues. The state hosts several festivals and events throughout the year, including the Montana Folk Festival, the Montana Shakespeare in the Parks, and the Montana Cowboy Poetry Gathering.
Cost of living: Montana's cost of living is generally lower than the national average, but it can vary depending on the location. Housing and healthcare costs, in particular, may be higher in certain areas.
The cons of retiring in Montana:
Limited job opportunities: Montana's economy is largely based on natural resources and agriculture, which may limit job opportunities for retirees seeking part-time work or second careers.
Harsh winters: While the snowy winters may be appealing to some retirees, they can also be a challenge for others who may not be accustomed to the cold weather.
Taxes: Montana taxes retirement income and Social Security income. It has also recently repealed a number of retirement-related tax deductions.
How much tax will you pay in Montana when you retire?
Montana has a graduated state income tax rate ranging from 4.70% to 5.90%.
Income from your retirement accounts, such as your 401(k) or IRA, is taxable.
As stated in Kiplinger, Montana repealed several tax deductions for the 2024 tax year. These included the partial pension, annuity, and IRA deduction.
Retirees can now deduct up to $5,500 of qualified retirement income.
It’s also important to note that Social Security income is partially taxable in Montana.
What age can you retire in Montana?
Montana doesn’t mandate a specific retirement age, allowing individuals to retire whenever they can financially support themselves. Here are some key points for retirees in Montana:
Social Security benefits: You can start receiving Social Security benefits as early as age 62. However, if you delay taking benefits, your monthly payments will increase. The full retirement age (FRA) is between 66 and 67, depending on your birth year. Delaying benefits until after your FRA can result in even higher monthly payments.
Medicare eligibility: Medicare eligibility begins at age 65, regardless of whether you are retired. If you choose to retire before age 65, you will need to find alternative healthcare coverage until you become eligible for Medicare.
Retirement savings: It is important to start saving for retirement as early as possible. Many financial experts recommend saving at least 15% of your income for retirement.
Get expert retirement advice
Montana offers a diverse range of retirement options, from picturesque mountain towns to bustling cities.
It's important to seek expert financial advice to weigh up all of the costs associated with retiring in Montana, including property taxes, insurance, and living expenses, in order to make an informed decision about whether the state is the right choice for your retirement.
Content writer
Kate has written for leading publications and blue chip companies over the last 20 years.