So you want to become a world traveler in retirement, but you’re also a responsible person who knows they need to support themselves for the next 30 years. You can take advantage of your newfound free time in retirement and rethink your destinations to maximize value. With careful planning and some creativity, you could fulfill your dreams of travel in retirement without overspending.
Setting a travel budget is important even if you’ve saved a lot of retirement: There are reasons why $1 million in savings may not be enough, especially if you want to take advantage of your abundance of free time and make multiple, or extended trips. You can look at your retirement income, subtract essential expenses, then decide how much of the left over funds you want to put towards travel.
Consider the cost of vacations, as well as visits to family, and travel to special events like graduations and reunions you want to attend. If you look beyond Western Europe for a vacation, you’ll find that travel is much less expensive. Museums, food, and hotels in major cities in Western Europe can break the budget, while the cost of living, amenities, and entertainment in Southeast Asia and South America is much lower.
Just as important as choosing where to travel is choosing when to travel. You might want to push your ultimate dream vacation back a year or two in order to budget for it properly, or wait until you’ve sold your house. Alternatively, you can reduce the cost of a trip by scheduling it for the offseason. Airlines may offer deals, hotel rates tend to be lower, and as an added bonus, destinations tend to be less crowded.
Once you’re retired, your schedule will be more flexible. You can use this to your advantage by traveling on Tuesdays and Wednesdays, which tend to be the best days for saving money. Stretching out your vacation and living more like a local by renting a room instead of staying in a hotel, and making your own food instead of eating out can also help you get the most for your money. You don’t have to schedule vacation days in advance, so consider remaining on the lookout for sudden flight price drops. Make a list of places you would like to visit, and then look out for deals.
Enjoying your retirement doesn’t have to mean overspending. Planning and creativity can go a long way towards maximizing the value of your travel budget. Traveling in the offseason or in the middle of the week, and considering new destinations can help you fulfill your travel goals without overspending.
Before your plan your dream vacation, you have to plan for your retirement. The professionals at ILG Financial can help you create a retirement plan that accounts for your individual retirement goals. Click here to schedule your no cost, no obligation review today.