Can You Really Live on Social Security in Colorado? Yes, in These 5 Mountain Towns
Breaking Retirement News (January 17, 2026): While Colorado's average home value climbed to $529,754 (down 2.4% from 2025), retirees receiving average Social Security benefits of $1,976 monthly can still afford comfortable mountain living—if they know where to look.
The Social Security Reality Check
The Social Security Administration reports that 2026 benefits average $1,976 per month for individual retirees, with married couples receiving approximately $3,289 combined. After the 2.5% cost-of-living adjustment (COLA), these fixed incomes face significant challenges in Colorado's Front Range cities, where Denver households spend an average of $102,635 annually.
However, five mountain towns offer substantially lower costs while delivering the outdoor lifestyle Colorado is famous for.
1. Canon City: Gateway to the Royal Gorge
Population: 17,000 Median Home Price: $285,000 Average Rent: $950/month (1-bedroom)
Why It Works for Social Security: Cañon City's housing costs run 46% below the Colorado state average, making it the most affordable mountain-adjacent community for retirees. Located at 5,332 feet elevation along the Arkansas River, this historic town offers four-season mild weather and proximity to Royal Gorge Bridge & Park.
Monthly Budget Breakdown:
- Housing (rental): $950
- Utilities: $150
- Groceries: $350
- Healthcare: $300
- Transportation: $200
- Total: $1,950
With average Social Security benefits of $1,976, singles can cover essentials with room for modest entertainment and savings.
Retiree Perks: Property tax exemption for seniors 65+ on first $200,000 of home value, free senior center activities, and Royal Gorge Route Railroad senior discounts.
2. Pueblo: Colorado's "Banana Belt"
Population: 112,000 Median Home Price: $245,000 Average Rent: $875/month (1-bedroom)
Why It Works for Social Security: Pueblo boasts Colorado's lowest overall cost of living—18% below the national average. At 4,695 feet elevation, it enjoys 300+ days of sunshine annually with milder winters than high-altitude towns. The Arkansas Riverwalk, Historic Arkansas Riverwalk of Pueblo (HARP), and Pueblo Weisbrod Aircraft Museum provide entertainment without breaking the bank.
Monthly Budget Breakdown:
- Housing (rental): $875
- Utilities: $140
- Groceries: $340
- Healthcare: $290
- Transportation: $180
- Total: $1,825
Couples receiving $3,289 monthly Social Security can comfortably afford homeownership in Pueblo, with median payments around $1,600/month.
Retiree Perks: Pueblo County offers 50% property tax reduction for seniors 65+ earning under $16,000 annually. Free Pueblo Transit for riders 60+.
3. Salida: The Heart of the Rockies
Population: 5,600 Median Home Price: $485,000 Average Rent: $1,200/month (1-bedroom)
Why It Works for Social Security: While Salida's home prices reflect its growing popularity, rental costs remain manageable for retirees willing to downsize. This vibrant arts town at 7,083 feet offers world-class mountain biking, fishing on the Arkansas River, and hot springs access. Salida's walkable downtown reduces transportation costs significantly.
Monthly Budget Breakdown:
- Housing (rental): $1,200
- Utilities: $160
- Groceries: $380
- Healthcare: $320
- Transportation: $150 (walkable downtown)
- Total: $2,210
Best suited for couples with combined Social Security benefits of $3,289, leaving $1,079 for discretionary spending.
Retiree Perks: Heart of the Rockies Regional Medical Center provides quality care. Salida Hot Springs Aquatic Center offers senior memberships at $45/month.
4. Alamosa: San Luis Valley Gem
Population: 9,800 Median Home Price: $265,000 Average Rent: $850/month (1-bedroom)
Why It Works for Social Security: Alamosa, at 7,544 feet in the San Luis Valley, offers affordable mountain living with stunning Great Sand Dunes National Park just 35 miles away. Housing costs are 35% below Colorado's average, and the town's small size keeps daily expenses low.
Monthly Budget Breakdown:
- Housing (rental): $850
- Utilities: $135
- Groceries: $330
- Healthcare: $280
- Transportation: $190
- Total: $1,785
Singles on Social Security can live comfortably with $191 monthly cushion.
Retiree Perks: Adams State University provides cultural events and senior audit programs. San Luis Valley Regional Medical Center serves the community. Seniors 60+ receive discounts at Splashland Hot Springs.
5. Trinidad: Historic Mountain Town
Population: 8,300 Median Home Price: $198,000 Average Rent: $725/month (1-bedroom)
Why It Works for Social Security: Trinidad, at 6,025 feet near the New Mexico border, offers Colorado's most affordable mountain town living. Historic downtown features Victorian architecture, and nearby Purgatoire River provides outdoor recreation.
Monthly Budget Breakdown:
- Housing (rental): $725
- Utilities: $130
- Groceries: $320
- Healthcare: $270
- Transportation: $175
- Total: $1,620
Singles can live on Social Security with $356 monthly surplus for entertainment, healthcare copays, or savings.
Retiree Perks: Mt. San Rafael Hospital provides local care. Trinidad History Museum offers free senior admission. Property taxes among Colorado's lowest.
Making It Work: Essential Strategies
1. Choose Rentals Over Homeownership: With Colorado's $529,754 median home price, renting eliminates property taxes, maintenance, and insurance costs.
2. Leverage Senior Discounts: Colorado Parks and Wildlife offers Aspen Leaf Annual Pass ($70) for seniors 64+, granting free state park access.
3. Consider Part-Time Work: Many retirees supplement Social Security with seasonal tourism jobs (average $15-18/hour) without jeopardizing benefits (earn up to $22,320 annually if under full retirement age).
4. Utilize Medicare Savings Programs: Colorado's Old Age Pension (OAP) provides $931 monthly for seniors 60+ with limited income, stacking with Social Security.
5. Join Community Resources: Senior centers in all five towns offer free meals, activities, and transportation assistance.
Colorado vs. National Comparison
While Colorado's overall cost of living runs 5% above the national average, these five mountain towns offer affordability comparable to Midwest states—without sacrificing mountain views, outdoor recreation, or quality healthcare.
Denver Comparison: Living costs in these towns run 40-50% below Denver's $102,635 annual household spending, making mountain retirement accessible on Social Security alone.
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The Bottom Line
Yes, you can live on Social Security in Colorado—if you choose the right mountain town. Cañon City, Pueblo, Salida, Alamosa, and Trinidad offer affordable living ($1,620-$2,210 monthly) while delivering the outdoor lifestyle retirees crave.
Key Takeaways: Singles receiving $1,976 monthly can comfortably afford Cañon City, Pueblo, Alamosa, or Trinidad. Couples with $3,289 combined benefits can live well in any of these five towns, with Salida offering the most amenities at higher cost.
Action Steps: Visit during shoulder seasons (April-May or September-October) to experience weather and crowds. Connect with local senior centers for housing leads and community resources. Consider renting first to test affordability before committing to homeownership.
With Colorado's 300+ days of sunshine, world-class outdoor recreation, and these five affordable mountain towns, Social Security retirement doesn't mean sacrificing mountain dreams.
Your Colorado mountain retirement awaits.
Information based on 2026 Social Security Administration data, Zillow Colorado housing data, U.S. Bureau of Labor Statistics cost of living reports, and local municipal resources. Individual expenses vary. Consult a financial advisor for personalized retirement planning. Last updated: January 17, 2026.