If you’re looking to retire, there are plenty of places to do so, and each of them has its own pros and cons. But when it comes down to it, some places are better for retiring than others, and Colorado is one of the best. Here are seven reasons to retire in Colorado — and one drawback to consider before settling down in the Centennial State.
1. Retirement Income Taxes Are Low
In many states, retirement income is taxed the same way earned income is, or on a level that’s slightly lower but still very similar. Colorado, on the other hand, has a pension/annuity subtraction that includes Social Security, retired military pay, and military disability pay, as well as a homestead exemption for qualifying seniors.
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. Those 65+ also qualify for a homestead exemption, which excludes 50% of the value of a primary residence that has been lived in for 10+ years. Altogether, this means Colorado has one of the highest senior citizen tax deductions in the United States, making it great for retirement.
2. A Lot of Retirees Already Live in Colorado
Being the only retiree in a neighborhood could be alienating, but this isn't an issue in many Colorado communities. Not only do many people choose to retire here, but retirees contribute over $4.75 billion to the economy every year. You won’t just be welcomed in Colorado; you’ll be an essential part of the state.
3. Gorgeous Areas Are Accessible to All
When you’re looking for somewhere to retire, obviously the landscape is going to be important. There’s nothing like sitting outside and seeing the beautiful sunset or taking an afternoon trip to the lake for a bit of fishing. Colorado is full of beautiful scenery. Sunsets are gorgeous, and the hills and mountains that cover much of the state make for an even more unforgettable experience. If you’re one for more athletic pursuits, hiking those hills and mountains will give you an even nicer view.
4. Colorado Has Places to Retire for All Income Levels
You may sometimes see that Colorado has a higher cost of living than other states (more about that below). However, that tends to hold true only for specific cities. If you choose to retire in Denver, for instance, the cost of living is 12% higher than the national average. So, while it’s true that major cities will often be expensive, there are hundreds of suburbs and smaller cities that are much cheaper. You’ll still have plenty of things to do and beautiful sights to see.
5. Health Care Is Strong in Colorado
There are more than 100 hospitals in Colorado, and a range of doctors’ offices that take many kinds of insurance. For those who need assistance, Colorado provides its own Medicaid program.
6. Many Rural Areas Are Close to Cities
If you’re looking for a more rural area to live, there are several affordable rural or at least suburban communities that are just a short drive from a major city. These areas have all the amenities you need without the high price tag. You might, for instance, look into Fort Collins or Loveland, which are within range of Denver. Or go just a little farther south to Colorado Springs, which has an abundance of retirement communities.
7. Great Retirement Communities Exist All Over
Retirement communities make it easier to socialize with those who have similar interests, and Colorado is home to more than 240 retirement communities across the state. If you want to stay active like so many Coloradans, you might want to look at active adult communities in the Denver or Colorado Springs areas.
One Downside to Retiring in Colorado
As noted above, Colorado living expenses are higher than the rest of the nation. On the cost of assisted living, the average for a month of care in Colorado is between $3,800 and $6,200 per month, which is higher than the national average. In Denver, the average cost is about $5,000 per month. Even some rural and suburban areas can have a slightly higher cost of living. Or, in the case of mountain towns like Aspen, much higher than the national average. If you’re on a tight budget, you’ll want to carefully consider the cost of living as you look at cities in Colorado.
Where to Retire in Colorado
The Denver metro area is the most popular place to retire in Colorado on After55.com. You’ll find the most retirement communities in Denver, as well as in Aurora. The Colorado Springs area also is increasingly popular for retirement, with most communities in the city.
