Colorado's Beauty and Activities Lure Retirees, But Risks and Costs Persist
Colorado, renowned for its breathtaking landscapes and mild climate, is luring retirees with its myriad outdoor activities. However, potential residents should contemplate various factors, including wildfire risks, cost of living, and taxes.
Colorado's natural beauty and mild climate make it a desirable retirement destination. Retirees can indulge in a wide array of outdoor activities, from hiking and skiing to fishing and golfing. However, some regions face wildfire risks, and high-altitude living may necessitate adaptability.
The cost of living in Colorado is 13% above the national average. Housing is particularly pricey, with an average home value of about $570,492, compared to the recent U.S. median of $410,800. Car insurance is also more expensive, with full coverage averaging $3,171 annually, higher than the national average. Conversely, the eastern plains region offers lower living costs than the urban Front Range area around Denver.
Colorado's tax situation may impact retirees' budgets. The state taxes Social Security benefits and distributions from 401(k) and IRA accounts. It has a flat income tax rate of 4.4%. Additionally, while the state sales tax is 2.9%, the overall average sales tax is 7.8% due to local taxes.
Colorado's natural beauty and outdoor activities attract retirees, but potential residents should balance the risks and costs. Wildfire risks, higher living expenses, and taxes are factors to consider. However, the state's diverse living options, from urban cities to rural areas, may help retirees find a suitable equilibrium.
