7 Reasons to Retire in Colorado

If you’re looking to retire in a state that offers sunshine, unbeatable views, and affordable rental options, look no further than Colorado. In Colorado, retirees enjoy lower income tax, strong healthcare access, and cities with large retirement communities. Here are seven reasons why Colorado is a good state to retire.  

1. Colorado’s Tax Breaks

In many states, retirement income is taxed similarly to earned income. Colorado, on the other hand, offers several tax benefits for retirees, including an age-based pension and annuity subtraction, favorable treatment of Social Security benefits, and a Senior Homestead Exemption for qualifying homeowners.   

The pension/annuity subtraction allows those 55 to 64 years old to exclude $20,000 of qualified retirement income and those 65+ to exclude $24,000. Colorado also offers a Senior Homestead Exemption, which excludes 50% of the first $200,000 of a qualifying primary residence’s actual value. Altogether, this means Colorado is one of the more tax-friendly states for many retirees.

2. A Large Retirement Community

While retirement can feel isolating, communities in Colorado embrace this next phase of life. Because Colorado is such a popular place to retire, there are large communities of retirees spread across the state. In fact, retirees in Colorado contribute more than $4 billion to the economy annually, making them an essential part of the state’s population and economic success.

3. Mountain Views in Your Backyard

Whether you’re drawn to Colorado for the sunshine or sweeping mountain views, the state offers beautiful natural scenery. Iconic destinations like Rocky Mountain National Park and Grand Mesa are found throughout Colorado. If you’re looking to pick up a new hobby during retirement, Colorado offers endless opportunities for hiking, sightseeing, and enjoying the outdoors.

4. Cities for Every Budget

Colorado is home to a wide variety of cities, each offering different lifestyles and living perks. The average rent in Colorado is lower than the national average, but the cost of living differs depending on the city. For example, the cost of living in Denver is 9.9 percent higher than the national average, while the cost of living in Pueblo is 8.1 percent lower than the national average. Depending on your budget, Colorado has cities suited for a variety of income levels.

5. Strong Healthcare Access

Colorado has more than 100 hospitals, ranging from large medical centers to pediatric and psychiatric facilities. With healthcare providers located throughout the state, retirees have access to a wide range of medical services. Plus, Colorado offers its very own Medicaid program for qualifying residents.

6. Small-Town Living with Big-City Access

Whether you’re looking for suburban or urban living, Colorado has plenty of neighborhoods to choose from. Cities like Arvada, Lakewood, and Golden are within a short drive of Denver, while Colorado Springs, Aurora, and Boulder offer big-city amenities of their own. Each city offers unique housing options, amenities, and senior living opportunities, allowing retirees to choose the community that best fits their lifestyle.  

7. Active Retirement Communities Across the State

Retirement communities help retirees connect with others who share similar interests and lifestyles. There are several senior living communities throughout Colorado, but Denver, Boulder, and Aurora offer some of the state’s most active options.

Where to Retire in Colorado: 5 Best Cities for Retirees

If you’re struggling to decide where to retire in Colorado, start with these five cities. With several senior living communities to choose from, plus convenient amenities and comfortable lifestyles, these five cities are worth considering. 

1. Colorado Springs

• Average Rent in Colorado Springs: $1,297/month
• Renter Mix in Colorado Springs: 41%

Colorado Springs offers a suburban getaway from the hustle and bustle of Denver. Sitting at the foot of Pikes Peak and the Rocky Mountains, the city offers everything from garden-style apartment communities to spacious townhomes with mountain views. Colorado Springs has 78 senior living apartments available for rent, making it easy for retirees to find a rental that fits their lifestyle.  

2. Aurora

• Average Rent in Aurora: $1,378/month
• Renter Mix in Aurora: 40%

Located east of Denver, Aurora features more than 100 parks and 6,000 acres of open space for recreation. Aurora and Quincy Reservoirs offer fishing, boating, and hiking opportunities, making the city a great place to enjoy an active retirement. Aurora has 22 senior living communities with over 300 available rentals, making it one of the most available cities for retirees in Colorado.  

3. Fort Collins

• Average Rent in Fort Collins: $1,656/month
• Renter Mix in Fort Collins: 50%

Set along the Cache la Poudre River, Fort Collins is known for its preserved historic landscape and distinct neighborhoods. In the Old Town Historic District, renters can find Craftsman-style houses, townhome-style apartment communities, and historic loft conversions. Fort Collins is home to 13 senior living communities and 28 rentals across the city, offering modern amenities and comfortable living.  

4. Boulder

• Average Rent in Boulder: $1,885/month
• Renter Mix in Boulder: 54%

Boulder is set against the backdrop of the Flatirons in the Rocky Mountains and combines outdoor access with city amenities. The city features over 45,000 acres of open space and mountain parks for hiking, biking, and other outdoor activities. Boulder currently has six senior living communities in the city, ranging from apartment communities to townhomes.

5. Pueblo

• Average Rent in Pueblo: $1,021/month
• Renter Mix in Pueblo: 42%

Pueblo is one of the more affordable cities in Colorado and offers a relaxed setting near the Arkansas River. Local attractions include the Historic Arkansas Riverwalk, the Union Avenue Historic District, and City Park. There are seven senior living communities in Pueblo with 20 rentals available, making it a strong option for retirees looking to keep housing costs lower.  

Find Your Colorado Home on Apartments.com

With plenty of cities to choose from, Colorado is one of the most popular states in the country for retirees. Whether you’re looking for a suburban townhome or a senior living apartment in Boulder, Apartments.com has all the tools to make your apartment search easy and effortless. Browse senior living communities in Colorado on Apartments.com today.