Each year, retirement payments to former public employees quietly boost local economies across the state of Colorado.

A June 2026 report by Pacey Nehls Economic Consulting shows Colorado PERA paid $4.78 billion in benefits to more than 119,000 state residents in 2025. As retirees spent those dollars on everyday needs like groceries, housing, and healthcare, that money flowed through local businesses to produce $7.32 billion in total economic activity, with $3.71 billion added to Colorado’s state economy.

A Multiplier Effect Across the State

The impact doesn’t stop with the first purchase. Businesses that receive retiree spending turn around and spend that money on their own supplies, payroll, and other needs. That sets off round after round of new spending, multiplying the impact of every pension check.

Pacey Nehls estimates that for every $1 paid out in PERA benefits, $1.53 in economic activity is generated in Colorado, which has helped to sustain 26,500 local jobs and $1.84 billion in wages for workers statewide.

Retiree spending also yields $406.6 million in taxes back to state and local governments. Retirees help pay for the things Colorado communities consistently rely on, from county roads to emergency services.

Where the Money Stays and Why It Matters

According to the report, consumer-facing sectors like real estate, healthcare, finance, and retail businesses see the biggest benefit, accounting for nearly two-thirds of what retirees spend.

A major reason these dollars circulate so effectively across local businesses is that most of the money stays in Colorado. More than 85% of total benefit distributions are paid directly to retirees who continue to live in the state, and those funds repeatedly change hands as retirees pay taxes and frequent local shops.

And although over half of total distributions go to the Metro Denver region, PERA payments carry an outsized impact in rural communities. In regions like the Pueblo-Southern Mountains and the San Luis Valley, pension distributions account for more than 10% of total local payroll — compared to less than 2% in the Denver metro area.

Because the PERA Defined Benefit Plan provides retirement income for life, these monthly distributions remain fixed and predictable regardless of market volatility. For rural towns, that steady spending helps keep local businesses and tax revenue stable, even when the broader economy slows down.

Two Decades of Growth

Statewide PERA distributions have climbed 95% since 2009, when annual payments totaled $2.45 billion.

Over the past decade, PERA’s pooled investments have returned an average of 9.5% annually, well above the fund’s 7.25% target rate of return. Those investment gains, not just contributions from employers and employees, have made up more than 60% of all additions to the fund since 1987.

Every dollar paid to a retired teacher, trooper, or local government employee keeps moving through Colorado’s economy long after it lands in a bank account. And behind these statewide figures are individual stories of retirees who’ve chosen to stay rooted in the communities where they built their careers and continue to support their neighbors.

For more information and access to detailed breakdowns by region and county, download the 2026 Economic and Fiscal Impacts report.

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