Exploring Retirement in Colorado: A Comprehensive Review

Whether you are considering moving to, staying in, or relocating from Colorado, Agemy Financial Strategies is here to help make your retirement planning easier. With offices in Denver, we provide personalized guidance to help you navigate this important phase of life.

In this blog, we’ll explore what makes Colorado such an appealing place to retire and discuss key factors to consider when planning your future in this beautiful state. Here’s everything you need to know.

Why Retire in Colorado?

Colorado is renowned for its vibrant arts scene and abundant outdoor activities year-round. The state offers a dynamic lifestyle that appeals to various interests and preferences. Here are a few compelling reasons why Colorado is a standout choice:

1. Stunning Natural Landscapes: Colorado is known for its breathtaking landscapes, making it a wonderful place for retirees to enjoy the outdoors at their own pace. Whether taking a stroll along scenic trails, marveling at the majestic mountains, or simply soaking in the serene beauty of places like the Great Sand Dunes National Park, there’s something for everyone. With an estimated 252 days of sunshine each year, Colorado provides a pleasant climate that allows retirees to enjoy nature comfortably, whether they prefer active adventures or more relaxed outdoor experiences.

2. Thriving Cultural Scene: Colorado offers a vibrant cultural environment with a rich tapestry of art, music, theater, and food. Denver, the state capital, is a hub of cultural activity featuring world-renowned museums, galleries, and music festivals. Boulder, another popular city among retirees, offers a unique mix of outdoor adventure and artistic communities. It is a perfect spot for those looking to immerse themselves in a dynamic cultural setting.

3. Popular Retirement Communities: Retirement communities offer an excellent opportunity to connect with like-minded individuals, fostering social interactions and shared interests. Colorado boasts over 240 retirement communities across the state, providing ample options for retirees seeking vibrant social environments. These communities allow you to have the best of everything with neighbors your age and loads of activities to keep you as social and busy as you want.

Things to Consider for Retiring in Colorado

While Colorado offers many benefits, there are also important factors to consider before deciding to retire in the state. However, there are several factors to consider when planning your retirement:

1. The Cost of Living 

Retiring in Colorado has many benefits, but being mindful of the cost of living is essential. According to the Colorado Office of Economic Development and International Trade, the state’s overall cost of living is about 12% higher than the national average. This elevated cost is primarily due to housing that tends to be more expensive in popular cities like Denver, Boulder, and Colorado Springs.

While the state offers a high quality of life, retirees should carefully assess their financial situation to ensure they can sustain their desired lifestyle. According to GoBankingRates, here is what you can expect in retirement:

• Total expenditures: $60,593
• 20% comfort buffer: $15,148
• Cost of a comfortable retirement annually: $75,742

Partnering with a fiduciary advisor can help you effectively plan and prepare for the financial demands of living in Colorado, helping you to enjoy your retirement to the fullest.

2. Healthcare Considerations 

Access to quality healthcare is crucial for retirees, and Colorado does not disappoint. The state is home to some of the top-rated hospitals in the U.S. UCHealth University of Colorado Hospital and Denver Health Medical Center are known for their excellent geriatric care services. This focus on quality healthcare helps ensure retirees have access to the medical care they need to maintain a healthy and active lifestyle.

However, even with access to excellent healthcare facilities, planning for the potential costs associated with medical care during retirement is important. Recent data shows a healthy 65-year-old couple might need over $395,000 for healthcare in retirement. It’s advisable to consider supplemental health insurance plans and long-term care insurance to cover these potential expenses.

3. Tax Considerations

When planning for retirement, making your money last throughout your golden years is essential. One crucial factor is how state-specific taxes can affect your retirement income. While Colorado does tax retirement income, it also offers several tax benefits that may work in retirees’ favor. Here are four common types of taxes to keep in mind:

• Income Tax: The state has a relatively low, flat income tax rate of 4.40%, which appeals to retirees looking to maximize their retirement savings.
• Sales Tax: Colorado has a 2.90% state sales tax rate and an average combined state and local sales tax rate of 7.81%. Although sales taxes are higher in Colorado, they do not apply to essential items like groceries or medications, helping to reduce overall living expenses.
• Property Tax: Colorado has a 0.45% effective property tax rate on owner-occupied housing value.
• Estate Tax: Another significant benefit of retiring in Colorado is the absence of an estate tax. This allows you to pass on your wealth to your loved ones without incurring additional taxes, which can be a substantial advantage for retirees who wish to preserve their legacy and provide for their families.

Working with a fiduciary advisor can help you navigate any questions regarding Colorado taxes. By understanding these considerations, you can better plan for a financially secure retirement in Colorado.

Planning Your Retirement in Colorado With Agemy

At Agemy Financial Strategies, we help guide individuals through the complexities of retirement planning, with a focus on those living in Colorado and Connecticut. Our team of dedicated fiduciary advisors offers personalized strategies tailored to your unique financial needs and goals, including:

• Retirement Planning
• Estate planning
• Long-term care planning
• Lifestyle Management 

We take an educational approach, helping you navigate Colorado’s financial landscape and understand its potential challenges and opportunities. From effective tax management to optimizing retirement income, we provide comprehensive guidance on every aspect of your financial plan, ensuring you are well-prepared for the future. To explore our full range of services, click here.

Final Thoughts

Colorado offers many opportunities for retirees, from stunning natural beauty and a vibrant cultural scene to tax advantages and quality healthcare. However, like any major life decision, retiring in Colorado requires careful planning and consideration of various factors, including cost of living, climate, and healthcare needs.

By partnering with Agemy Financial Strategies, you can confidently navigate these complexities and create a retirement plan that aligns with your goals and aspirations. Whether you envision a dynamic urban lifestyle in Denver or a peaceful retreat in Colorado Springs, we are here to help you achieve a secure and fulfilling retirement.

Contact us today and schedule a consultation with our experienced fiduciary advisors today.

Disclaimer: This content is for educational purposes only and should not be considered financial or investment advice. Please consult with the fiduciary advisors at Agemy Financial Strategies before making any investment decisions.