The instructions for Form 104NR say:
Income from Arizona sources includes the following:
• wages;
• rental income;
• business income;
• the sale of Arizona real estate;
• interest and dividends having a taxable or business situs, in this state; and
• any other income from an Arizona source.
I'm not specifically familiar with AZ taxes, but but the source state of retirement income is generally your state of residence, not the state where the retirement plan is established, so I would expect that any retirement income received while a resident of SD would be SD income, not AZ income. Therefore, if the retirement income is the only income for which you are considering filing an AZ nonresident tax return, I don't think you are required to file Form 104NR.
