This article takes a look at the 15 best places to retire in Montana. If you wish to skip our detailed analysis of the impact that climate change has on US retirement, you may go to 5 Best Places to Retire in Montana.

Climate Change and the Impact on American Retirement

$16,972 – that’s the average amount invested by The Procter & Gamble Company (NYSE:PG) employees in fossil fuel bonds and stocks. Right behind them are Verizon Communications Inc. (NYSE:VZ) employees with an average investment of $13,085. These figures, attributed from the AtmoSphere tool, are investments made via employees’ 401(k) plans. At a time when the conversation surrounding climate change and its atrocious consequences is at an all-time high, future American retirees need to add another concern to their already overflowing plates – is their retirement planning destroying the planet?

The short answer is yes. According to Sphere founder and CEO Alex Wright-Gladstein, US retirement plans invest an estimated $1 trillion in fossil fuel companies. That’s roughly 14% of the total amount that Americans have saved in 401(k) retirement plans. Considering that the road to achieving net zero emissions by 2050 calls for a yearly investment of $4 trillion according to the International Energy Agency, a redirection of 401(k) money could go a long way.

So, why is the average American worker investing so heavily in fossil fuels? And what is the outcome? For the former, it’s mostly a lack of awareness, and then a lack of options. Many companies simply branch out and utilize companies such as Vanguard, BlackRock, Inc. (NYSE:BLK), and Fidelity to set up their employee retirement plans. With companies such as BlackRock, Inc. (NYSE:BLK) taking on the initiative, not only are employees separated from the factor of accountability, but they are also not given much information about the company stocks included in their 401(k) plans.

Worse yet, many individuals face a lack of environmentally-friendly options when it comes to selecting their retirement plans. For instance, 14 Republican states have made it legally difficult for state pension funds, state agencies, and municipalities to conduct business with financial companies that account for climate change factors, reports GreenQueen. In fact, Plan Sponsor Council of America research indicates that less than 5% of 401(k)-type plans have climate change-cognizant funds available. So, it is very well likely that employees at the likes of Verizon Communications Inc. (NYSE:VZ) and The Procter & Gamble Company (NYSE:PG) either do not have access to climate-friendly retirement plans or are not aware of the harmful nature of their current plans.

When we look at the outcome of all this, the situation is dire. In 2023 alone, the US suffered over $93 billion worth of damage at the hands of climate change-related weather disasters, according to the National Centers for Environmental Information. Senior citizens themselves are particularly susceptible to climate change, with their often compromised health being more exposed to its effects. The United States Environmental Protection Agency states that senior citizens are at greater risk of heat illnesses and respiratory illnesses – among others – when climate change occurs.

Additionally, climate change also makes it more difficult for people to decide where they want to live in the long term, making retirement planning unpredictable. Is the place where they currently live safe enough from natural disasters? If not, then should they continue renting and hold off on purchasing a property that could potentially be their retirement home? Furthermore, many individuals are also facing problems obtaining renter’s or homeowner’s insurance, with premiums either being increased or insurance being denied altogether. All this makes the looming threat of climate change and its negative consequences even more severe for senior citizens.

When deciding where to retire, individuals often consider different states, and it’s important to think about how these states fare in the face of climate change. Take Montana, for instance. According to the United States Environmental Protection Agency Montana is warming up. The state has witnessed a two-degree rise in temperature over the past century, with heat waves and droughts becoming more of a commonality. Despite this, Montana does comparatively well in regard to climate change when compared to other US states. The state takes the tenth spot on SafeHome’s Climate Change Risk Index with a higher ranking indicating lesser danger.

Of course, there are other matters to consider for a Montana retirement – particularly financial ones. The rental market is favorable to retirees with Zillow Group, Inc. (NASDAQ:Z) stating the median rent for one-bedroom properties in Montana to sit at $1,250 – 22% lower than the national median. However, Montana is among the few states that tax Social Security in 2024. Single and joint filers have a respective income threshold of $25,000 and $41,000, above which benefits will be taxed at a rate of 5.9%. On the plus side, the state is one of the few without a general sales tax.

To facilitate present and potential retirees in navigating the move to Montana state, we have compiled a list of the 15 best places to retire in Montana.

Methodology

To compile this list of the 15 best places to retire in Montana, we consulted several sources including Unbiased, NewHomeSource, Niche, Empower, Movoto, WorldAtlas, Ramsey Solutions, and AZ Animals.

Once a list of places was compiled, we ranked them across multiple factors, namely, cost of living, livability scores, and median house price. For this article, livability scores were taken from Area Vibes, median house prices were taken from Redfin Corporation (NASDAQ:RDFN) and Realtor, and the cost of living index was our own. To ensure that the recommended places were of a suitable living standard and not overly expensive, we removed places with a livability score below 65 and a cost of living index higher than 120. A cumulative score was then assigned – livability scores were given a double weightage – with the 15 highest-scoring places making our list of the 15 best places to retire in Montana. For places that gained an equal score, their cost of living index was used as a tie-breaker. The resulting list is presented in ascending order.

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Here are the 15 best places to retire in Montana:

15. Kalispell

Insider Monkey Score: 65

Livability: 70

Cost of Living Index: 102.6

Median House Price: $507,450

A gateway into nature, there’s no better pick to kick off our list of the best places to retire in Montana than the magical city of Kalispell. Serving as an entryway into Glacier National Park, Kalispell residents can immerse themselves in the surrounding alpine trails and wildlife along with the beauty of Flathead Lake. Retirees will find the city to be according to their preferences, with activities such as golfing, skiing, hiking, and fishing being resplendent in the area.

14. Lewiston

Insider Monkey Score: 68

Livability: 69

Cost of Living Index: 89.5

Median House Price: $557,500

With a cost of living that is 10.5% lower than the national average, a Lewiston home makes Montana a good place to retire financially. Located in Fergus County, the city held a small population of just over 6,000 residents at the time of the last United States Census. Despite its size, Lewiston packs a punch. Retirees can busy themselves with the Snowy Lanes bowling alley, the Lewiston Art Center art gallery, or the Charlie Russell Chew Choo premier dinner train attraction – to name a few.

13. Hamilton

Insider Monkey Score: 72

Livability: 74

Cost of Living Index: 102.6

Median House Price: $599,000

One of the best places to live in Montana is the Ravalli County city of Hamilton. With a population count that is below the 5,200 mark, the city is the perfect retirement destination for senior citizens who are craving the quiet and peace of slower living. Retirees will feel at ease in the surrounding nature as they enjoy their days visiting the local farmer’s market, art studio, and even a private golf course.

12. Livingston

Insider Monkey Score: 74

Livability: 77

Cost of Living Index: 105

Median House Price: $625,000

Located in southwestern Montana, the city of Livingston is set by the Yellowstone River. Initially known as Clark’s City, the name was later changed to Livingston in honor of a railroad executive by the name of Crawford Livingston. Nowadays, residents can step into the outdoors at the Sacajawea Park and Tennis Courts, relax at the Katabatic Brewing Company Brewery, and catch a performance at the Blue Slipper Theatre. The city is also located near Yellowstone National Park, making it easy for residents to visit on a day trip.

11. Dillon

Insider Monkey Score: 74

Livability: 70

Cost of Living Index: 87

Median House Price: $469,000

The city of Dillon is one of the most affordable places to retire in Montana as it carries a cost of living that is 13% lower than the national average. Not only does this make it an ideal choice for financially struggling retirees, but also for those who want to limit their spending on necessities and save up for more fulfilling retirement experiences – such as travel. Located in Beaverhead County, Dillon also serves as a popular tourist location with activities such as fishing, hiking, and skiing being common in the area.

10. Havre

Insider Monkey Score: 80

Livability: 70

Cost of Living Index: 86.4

Median House Price: $276,500

Taking its name from the French city of Le Havre, Havre in Montana takes the tenth spot on our list of best places to retire in Montana. With a low cost of living and high livability score, senior citizens who choose to retire in the city will be able to experience the best of both worlds. The city, despite being small, contains a hospital and post office as well as a couple of grocery stores and shopping malls, making life convenient for retirees.

9. Libby

Insider Monkey Score: 81

Livability: 72

Cost of Living Index: 91

Median House Price: $347,500

Next up is the Lincoln County city of Libby. The city gets its name from the family of a miner by the name of Stephen Allen. Allen’s daughter, Elizabeth, was the individual after whom the city of Libby was named. Today, residents can play at the Cabinet View Golf Club, try their luck at the Gold Pan Casino, or plan a staycation at the Venture Inn and Restaurant.

8. Bozeman

Insider Monkey Score: 83

Livability: 87

Cost of Living Index: 118.2

Median House Price: $720,000

While the city of Bozeman’s high cost of living may be a discouraging factor for some retirees, it is among the most livable cities in Montana which earns it a spot on our list. One of the larger cities on our list with a population of over 56,000 at the time of the last United States Census, Bozeman is a mountain town by way of the Rocky Mountains. Residents can visit the Museum of the Rockies which includes a T-Rex exhibit, the Ellen Theatre, and the Bridger Bowl Ski Area for a day out on the snow.

7. Missoula

Insider Monkey Score: 83

Livability: 80

Cost of Living Index: 107.4

Median House Price: $585,000

Located in western Montana, our next pick is another big city. With a population of almost 77,000 at the time of the last United States Census, Missoula is a great choice for senior citizens who want to experience big-city living during their retirement years. Residents can visit the ‘A Carousel for Missoula’ amusement park, the Missoula Farmer’s Market, and the Missoula Art Museum.

6. Deer Lodge

Insider Monkey Score: 83

Livability: 71

Cost of Living Index: 90

Median House Price: $265,000

The Powell County city of Deer Lodge is one of the best places to retire in Montana for retirees. Not only is it an affordable retirement destination with a cost of living that is 10% below the national average, but it also provides residents with all the amenities that they would require for a content life. A small city, Deer Lodge is known to be friendly and welcoming – perfect for senior citizens who are making a retirement time move and looking to socialize in their new home.

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Disclosure: none. 15 Best Places to Retire in Montana is originally published on Insider Monkey.