Should you retire in Colorado? You can probably think of a few reasons why you might want to do so. Permit me to review some -- along with some caveats.
For starters, there's a lot to like about Colorado as a place to live. It features a lot of natural beauty -- well beyond the impressive Rocky Mountain National Park. There are lots of state and national parks, ski resorts, forests, and lakes, offering a plethora of outdoor recreational activities -- such as skiing, hiking, biking, camping, fishing, and golf. Those looking for culture can enjoy live theater, film festivals, and museums.
Image course: Getty Images.
The climate is a plus, too. Summers can get hot, but evenings tend to cool down a lot, and many winter days are not that cold. Colorado averages 300 sunny days per year and low humidity. Retirees are likely to be satisfied with healthcare offerings. Per MedicareGuide.com, Colorado was recently ranked the eighth-best state for elderly healthcare. The economy is strong, too, and the locals are friendly.
It's not all mountain peaks and rainbows, though. Colorado has a relatively high cost of living -- roughly 120% of the national average, per BestPlaces.net. Of course, costs may also depend on where in Colorado you live, but in general, expect housing costs to be notably higher than average, though healthcare costs and utilities can be below average.
Other downsides include heavy traffic in some urban areas, and occasional natural disasters such as wildfires and floods.
Taxation can be an important factor for those choosing a retirement locale. On that score, the news is mixed. The state has a flat 4.4% income tax rate, but those 55 and older can deduct between $20,000 and $24,000 of retirement income. Distributions from retirement accounts such as IRA and 401(k) are taxable, and pensions are partially taxable. Social Security benefits are fully exempt from Colorado state taxes once you're 65.
As you plan for retirement -- and we all need a good retirement plan -- consider Colorado, if you're open to relocating. And if you already live there, good for you!
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