Every so often, a headline pops up claiming to know exactly how much money you need to retire. Maybe you’ve seen one recently and immediately wondered, “Am I anywhere close?”
Investopedia’s article, The Real Cost of Retirement for a Single American in Every State—And the Nest Egg Needed to Afford It, is a prime example. While I’m sure it got a lot of clicks, one article can never tell the whole story for each individual investor.
With that in mind, there are numbers that can give you a rough idea of what it takes to retire in Colorado, or at least things you should keep in mind as you’re making plans.
Colorado Retirement Is Likely to Cost More Than the National Average
According to Investopedia’s analysis, the average single American needs about $898,000 in retirement savings to support a comfortable retirement after accounting for Social Security. But where you live matters. States with higher costs of living require significantly larger nest eggs, and Colorado falls into the above-average cost category because of housing expenses and overall living costs.
One recent estimate put Colorado’s annual cost of living at $61,807, compared with the national average of $57,818. That same analysis estimated that a 20-year retirement in Colorado could require about $804,814 in savings, with higher targets for 25- or 30-year retirements.
That kind of number definitely grabs your attention, but it isn’t a magic number everyone needs to hit. Two people could retire with exactly the same amount saved and have completely different experiences. Someone with a paid-off home in Pueblo may need far less than someone renting in Boulder, traveling often, and making the most of Colorado’s outdoor lifestyle.
Housing Is Only Part of the Story
A big reason retirement costs are higher in Colorado is housing. In data cited by GOBankingRates, housing costs in the state were 17.1% above the national average, while groceries and transportation were also somewhat higher than average.
That matters because housing affects so much more than your monthly budget. Whether you’re still paying a mortgage or covering property taxes, insurance, HOA dues, maintenance, or rent, those costs can take a bigger bite out of your retirement income than you might expect. The more you spend on keeping a roof over your head, the less flexibility you may have for the things you were looking forward to: traveling, golfing, skiing, trying new restaurants, or just saying “yes” to more experiences.
Colorado Retirees Tend to Stay Active
One thing that makes Colorado unique is its lifestyle. Many retirees don’t picture themselves sitting at home. They want to ski, hike, bike, golf, travel, volunteer, visit grandchildren, explore national parks, or finally take those bucket-list trips they’ve postponed while working.
That’s wonderful, but it also means retirement spending often looks different than the national averages.
Many retirees naturally experience three phases of retirement spending:
- The “Go-Go Years” (roughly the first 10-15 years): More travel, hobbies, recreation, and dining out.
- The “Slow-Go Years”: Activity levels gradually decrease, and discretionary spending often declines.
- The “No-Go Years”: Healthcare and assistance may become larger expenses while travel and recreation decrease.
For many Coloradans, those first active years are exactly what they’ve been looking forward to. Planning for that period – not just assuming spending stays level for 30 years – is one of the most important parts of retirement planning.
The Real Goal Isn’t Hitting a Number
It’s easy to become fixated on articles that say you need $900,000, $1.2 million, or even $1.5 million to retire comfortably. Those numbers are helpful as reference points, but they aren’t personal financial plans.
For Colorado retirees, the real takeaway is that retirement will likely cost more than the national average, but the bigger issue is personal fit. Someone who owns a home outright and wants a simple lifestyle may need far less than a household still paying for housing and active travel. Someone else may need substantially more because they want to stay in the mountains, stay mobile, and stay busy.
If you’re wondering whether you’re on track, let’s create a retirement plan that’s based on your goals, not someone else’s statistics. Schedule a conversation today, and let’s start planning for the retirement that will fit your Colorado lifestyle.
Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities. Maia Wealth’s website and its associated links offer news, commentary, and generalized research, not personalized investment advice. Nothing on this website should be interpreted to state or imply that past performance is an indication of future performance. All investments involve risk and unless otherwise stated, are not guaranteed. Be sure to consult with a tax professional before implementing any investment strategy. Investment Advisory Services offered through Maia Wealth, a Registered Investment Advisor with the U.S. Securities & Exchange Commission. Registration does not imply a certain level of skill or training.
