The Complete Guide to Retiring in Colorado
Written by Ari Parker — Updated: Wednesday, September 25, 2024
Learn about retirement in Colorado, from taxes and income to lifestyle choices
If you’re considering retiring in Colorado, there are several factors to consider, including your lifestyle preferences, taxes, retirement communities, and the big pros and cons of Colorado retirement. Below, we’ll explore all of these details and more to help you understand what retiring in Colorado looks like!
Key Takeaways:
With beautiful mountain ranges and a diverse landscape, Colorado is a great place to enjoy a large variety of outdoor activities.
The cost of living in Colorado is higher than the national average.
Some people with heart or lung conditions may not do well with the high altitudes found in many parts of Colorado.
Pros and cons of retiring in Colorado
Colorado’s large population of retirees is a sign that it’s a great place to retire—but that doesn’t make it the best place for all retirees. Like all states, Colorado retirement has its pros and cons. We’ll outline the biggest pros and cons below and explore specific details in the following sections.
Pros of retiring in Colorado
With beautiful mountains, lakes, and forests, Colorado is a great place to spend time outside.
You’ll only be taxed on retirement income if your income is higher than a certain amount.
Colorado’s senior healthcare system is rated as one of the best in the country.
Cons of retiring in Colorado
The cost of living in Colorado is higher than the national average.
Extreme temperatures and severe weather conditions are a problem across the state.
Colorado’s high altitude areas can cause issues in people with heart or lung problems.
Retirement taxes in Colorado
Your income level and age determine if you pay taxes on retirement income in Colorado. If you’re between the ages of 55 and 64, you won’t owe taxes on retirement income unless your income is higher than $20,000. If you’re 65 or older, you won’t owe taxes on retirement income unless your income is higher than $24,000. This includes income from Social Security, pensions, and 401(k)s. Any income over the set amounts will be taxed at the Colorado income tax rate, which is 4.4%. If you’re married, each individual can claim the income tax deduction.
Retirement communities in Colorado
Colorado currently has 128 retirement communities. Most are located near major cities, where most of the population is located. A few can be found in more rural areas.
Popular cities to retire to in Colorado
Some cities in Colorado have gotten a reputation as being especially good to retire to. These include:
Montrose, located in western Colorado, has many outdoor activities and a large community of senior citizens.
Fountain, CO, which is located near Colorado Springs, has lower housing costs than many other parts of Colorado.
Pueblo, which is also near Colorado Springs, is located close to a large lake. Like Fountain, CO, it has relatively low housing costs.
Climate and outdoor recreation in Colorado
Colorado’s location in the Rocky Mountains, far away from any oceans, leads to a dry climate with hot summers and cold winters. Temperatures can change drastically during the day, the lack of rainfall can lead to wildfires, and tornadoes sometimes appear in the flatter, eastern part of the state.
The average elevation in Colorado is 6,800 feet, the highest of all the states. If you or anyone in your family has heart disease or lung issues, it’s important to understand how this altitude can affect your condition. The higher the elevation is, the more oxygen your heart needs. This means high altitudes can cause strain on your heart and various complications, even heart failure.
If altitude isn’t a concern and you enjoy the outdoors, Colorado could be a great place to retire to! Colorado has 43 state parks across the mountains, desert, and plains. You can hike in the mountains in the summer and ski on them in the winter. Colorado is also popular for people who like to camp or participate in river activities, like rafting.
Housing and cost of living in Colorado
Housing costs in Colorado are higher than the national average of $362,481. The average home in Colorado goes for $529,219. Some areas of Colorado have lower housing costs. For example, the city of Sterling’s average housing cost is $239,590. Property taxes in Colorado are relatively low. The average property tax rate in the state is 0.48%.
Resources for seniors in Colorado
The Colorado Department of Human Services offers services for older adults. Among these are adult protective services and the Lifelong Colorado program, which is a group of communities that have banded together to make themselves more senior-friendly. The State Unit on Aging offers several additional services, including nutrition services, legal assistance, and a program that helps seniors find jobs.
Quality of healthcare in Colorado
The United Healthcare Foundation rates Colorado 2nd for senior healthcare. Only Utah scored higher. This, along with a number of great hospitals in Colorado, makes the state attractive from a healthcare perspective. One hospital of note is the Swedish Medical Center in Englewood, which has won awards for cardiac care, stroke care, orthopedic surgery, and 12 other categories.
Medicare in Colorado
Around one million people in Colorado are currently on Medicare. 91% of enrollees are over 65, and the remaining others qualify for Medicare because they have a disability or qualifying medical condition.
Most people age into Medicare. If you’re one of the majority, then there’s a seven-month period around your birth month in which you can first enroll in Medicare. This is called your Initial Enrollment Period (IEP). It starts three months before your birth month and ends three months after.
When you first enroll in Medicare, you’ll enroll in Original Medicare, which is made up of Part A and Part B. Once you sign up, you have additional coverage options, including Medicare Part D (prescription drug coverage), Medicare Supplement plans, and Medicare Advantage plans. You can learn more about these different options in our overview of Colorado Medicare plans and via the links below.
Retiring in Colorado
Colorado is a great place to retire if you enjoy the outdoors. It’s great for adventurous spirits, but you can also sit back and enjoy the beautiful scenery. High-quality healthcare for seniors adds to Colorado’s appeal. Before you make the move, though, consider the high altitude and how it may affect your health. We also recommend visiting for an extended period before making the jump!