Retiring in Denver, CO: What You Need to Know
Denver's housing costs have doubled since 2015, making it one of the priciest mid-size cities. However, Colorado offers a unique FIRE advantage: a flat 4.4% state income tax with generous retirement income deductions after age 55. Social Security and up to $24,000 of pension/retirement income is exempt. For FIRE retirees drawing from traditional IRAs, this can save $2,000–5,000/year versus a state like California. Many Denver FIRE seekers use a house-hack strategy — buying a duplex or adding an ADU — to offset mortgage costs.
What Does $1,400,000 Get You in Denver, CO?
With a FIRE number of $1,400,000, you can safely withdraw $56,000 per year ($4,667/month) to cover living expenses in Denver, CO. This follows the 4% rule — the widely-used benchmark that says a diversified portfolio can sustain a 4% annual withdrawal rate indefinitely.
How to Reach FIRE for Denver, CO
- Know your real expenses. The $56,000 average may not match your lifestyle. Track every dollar for 3 months to get your true number.
- Optimize for local taxes. State income tax, property tax, and sales tax vary enormously and directly impact how much you need.
- Factor in healthcare. If retiring before 65, budget $400–$800/month for ACA marketplace insurance in Denver, CO.
- Run your own numbers. Use the FIRE calculator to enter your actual income, spending, and investments for a personalized timeline.