Your guide to retiring in Minnesota

Is Minnesota a good state to retire in?

Minnesota has it all for retirees: big cities, small towns, outdoor activities, and perhaps surprisingly diverse communities. It’s perched in the Upper Midwest, bordering North Dakota and Wisconsin, and is rife with beautiful lakes, scenic parks, and thriving cities. 

Accordingly, Minnesota offers a retirement experience that attracts many retirees every year. 

Minnesota had a population of approximately 5.8 million people as of 2024, per Census data, with nearly 18% of them age 65 or older.  making it one of the top states with a large retirement population.

Is there a mandated retirement age in Minnesota?

There’s no mandated retirement age in Minnesota or any other state. So, you can retire at any time. However, there are some age-related benefits and considerations for retirees in Minnesota: 

• Social Security benefits: The earliest age at which you can begin receiving Social Security benefits is 62, but if you delay taking benefits, your monthly payments will increase. Full retirement age (FRA) is between 66 and 67, depending on your birth year. Delaying benefits until after FRA can result in even higher monthly payments. 

• Medicare eligibility: Medicare eligibility begins at age 65, regardless of retirement status. However, if you choose to retire before age 65, you will need to find alternative healthcare coverage until you become eligible for Medicare. 

• Age discrimination: It is illegal for employers to discriminate against employees or job applicants based on age. 

• Retirement savings: Regardless of retirement age, it is important for individuals to start saving for retirement as early as possible. Many financial experts recommend saving at least 15% of your income for retirement. 

Why do people retire to Minnesota?

There are some compelling reasons to retire in Minnesota:

• Diverse environments: Minnesota is known for its diverse population and cultures, from its bustling cities to its beautiful parks and lakes. Retirees can enjoy living in a diverse environment that offers plenty of opportunities for exploration and experiences. 

• Outdoor activities: Minnesota is home to numerous lakes, forests, and parks, providing ample opportunities for outdoor activities such as hiking, camping, fishing, and boating. It’s the Land of a Thousand Lakes for a reason!

• Things to do and see: Minnesota has a lot to do and see, with numerous museums, galleries, and performing arts venues. The state hosts several festivals and events throughout the year, including the Minnesota State Fair, the Twin Cities Jazz Festival, and the Art-A-Whirl festival. 

• Health care: Minnesota is home to many highly rated hospitals and healthcare systems, making it an attractive destination for retirees who value access to quality healthcare. That includes the renowned Mayo Clinic.

What puts people off retiring to Minnesota?

You should also consider the potential drawbacks of retiring in Minnesota, too:

• Cold weather: Minnesota's climate is known for its long, cold winters, which could be a concern for retirees who prefer warmer climates. But if you like hockey? You’re in luck.

• Cost of living: Minnesota's cost of living is generally higher than the national average, which could be a concern for retirees on a fixed income. Housing and healthcare costs, in particular, are higher than in many other states. 

• Natural disasters: Minnesota is prone to natural disasters such as tornadoes, blizzards, and floods, which could be a concern for retirees living in certain areas. 

Best places to retire in Minnesota

If Minnesota is ticking all of your boxes, here are some potential cities to consider retiring in:

• Minneapolis: Minneapolis is the largest city in Minnesota, and thus, a cultural hub, with numerous parks and lakes, and a variety of housing options. It also has a strong healthcare system, making it an ideal location for retirees seeking easy access to medical care. 

• Rochester: Rochester is a small city located in southeastern Minnesota, home to the world-renowned Mayo Clinic. The city boasts a low crime rate, affordable housing, and a variety of recreational activities, including golfing, hiking, and biking. 

• Duluth: Duluth is a scenic city located on the shores of Lake Superior in northeastern Minnesota. It offers stunning views of the lake and surrounding forests, as well as a variety of outdoor recreational activities, including fishing, kayaking, and skiing. 

• St. Cloud: St. Cloud is a mid-sized city located in central Minnesota, offering a low cost of living, a strong healthcare system, and a variety of activities. It's also home to St. Cloud State University, which offers a range of lifelong learning opportunities for retirees. 

• Mankato: Mankato is a small city located in southern Minnesota, offering a low cost of living, a strong healthcare system, and a variety of recreational activities, including golfing, hiking, and biking. The city is also home to Minnesota State University, which offers a range of lifelong learning opportunities for retirees. 

Considering retiring in Minnesota?

Minnesota has a lot to offer retirees, including big cities and small towns, great health care, and more. But consider the brutal winters before making a move, and the cost of living.

It's important to seek expert financial advice to weigh up all of the costs associated with retiring in Minnesota, 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. 

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