Colorado Is One of the Best Places to Retire in the U.S. for Low Taxes, Mental Health, and Quality of Life

The best place to live in retirement should tick a lot of boxes, but, above all, it should be affordable. In 2023, the average retired household spent approximately $5,000 per month on living expenses, including housing and health care, according to data from the Consumer Expenditure Surveys. So if you’re looking for an affordable retirement destination in the U.S., WalletHub has a few suggestions. 

“Living in the right place after you retire can make your money go a lot further. That’s important considering the fact that 66 percent of non-retired adults say their retirement savings aren’t on track,” WalletHub reported in its list of the top spots to retire in the U.S. for 2025.

The company compared all 50 states across 46 metrics, which it said act as “indicators of retirement-friendliness,” including retirement tax rates, cost of living, access to health care, and the number of daily recreational activities.

After analyzing the data, WalletHub named Colorado the No. 3 best place for retirement this year.

Colorado won high praise thanks to its “taxpayer-friendly conditions with no estate or inheritance taxes. In addition, it has the seventh-lowest poverty rate for residents ages 65+ and the 10th-lowest percentage of seniors who have faced hunger in the past 12 months.” 

WalletHub added that the Centennial State is a fantastic spot for retirees looking to stay in great physical and mental health. “It has one of the lowest rates of social isolation for seniors, and it boasts the 10th-best geriatric hospitals in the country,” it noted. “It also has the fourth-highest percentage of seniors who are in good health and the third-highest percentage who are physically active.” 

And beyond all this, Colorado is ideal for those who want to stay socially engaged, as it has the sixth-most volunteer opportunities in the nation, as well as the ninth-most scenic byways and the 11th-most theaters per capita.

Joining Colorado at the top of the list is Minnesota, which secured second place due to its high number of healthcare facilities, good quality of life, and favorable financial outlook for seniors. WalletHub noted that “Minnesota has the 10th-lowest share of residents ages 65+ who are in poverty and the fifth-lowest percentage who went hungry in the last 12 months.” 

However, Florida, the gold standard for retirement destinations, outranked them all, coming in first thanks to its low taxes for retirees, including no estate, inheritance, or income taxes, as well as available funding from the Older Americans Act, which funds transportation, homemaker assistance, and nutrition programs for seniors across the state.

“Florida provides an ideal environment for retirees. It has the second-most shoreline miles of any state, allowing for plenty of relaxing at the beach. It also has the second-most adult volunteer activities, the fifth-most theater companies, and the seventh-most golf courses and country clubs,” WalletHub added. “There are plenty of ways for seniors to stay healthy and happy, which is reflected in the fact that Florida has the third-lowest death rate in the country for people ages 65+.” 

See the full rankings and where your state stands at wallethub.com.