When you plan your retirement, do you imagine yourself staying put all the time? Of course not. Retirement travel is a priority for most people, whether it’s visiting family in another state or globetrotting. You’ve earned this time, so you want to make sure you can make the most of it. Let’s see how you can be financially prepared for retirement travel.
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Plan your trips when saving for retirement
The best place to start planning a retirement trip is to factor it into your retirement plan. Many people consider relying on a fixed income retired. Retirement travel can be financially difficult if the extra costs are not factored in. Especially if you have big goals, the sooner you start saving, the better.
Usually, starting to save 5-10 years before retirement is a good time to plan. At this point, you will have an idea of your health status, as well as your appetite for travel. You can even create a separate fund just for travel instead of bundling everything with your retirement plan.
Reduce and reduce your daily expenses
Reckless spending added. Over time, the money you could have saved for travel is eaten up by dining out and impulse buying. Determine your needs vs wants is an excellent starting point. There are many ways to live frugally and get the most out of your dollar.
Another place you can look for savings is through discount programs. Grocery stores, restaurants and more offer discounts for people 60 and older. Consider joining AARP and taking advantage of membership benefits.
One way to increase your travel savings is to reduce the size of your house. This is especially true if you own your home. By selling your current home and buying a smaller, cheaper property, you can deposit the difference into your savings. In addition to the income from the sale, small houses are generally less expensive. You could have lower property taxes and lower utility bills.
Budget for your trips
Having a personal budget is helpful, but having a plan of how much you will spend on retirement travel is essential. You have to be prepared for the cost of things, and these days the cost can change. If you want to go to Greece, for example, tickets can cost you more or less depending on the season and when you book the tickets.
If you want to make the most of your trip, you might want to plan things aside from transportation, food, and accommodation. Many travelers take excursions to visit ancient ruins, fish or scuba dive, for example. Do your research and consider every element of the trips you want.
Consider extended stays
Since you are retired, you are more likely to be without responsibilities at home. If so, consider extending your retirement journey. According to a 2018 report by Airbnb, seniors are the fastest growing demographic group. Moreover, they are more likely to stay longer than other travellers.
On a per night basis, extended stays may be cheaper than shorter stays. This type of travel can also help you save in other ways. For example, if you are staying in a house, you can take advantage of the kitchen, which saves you the cost of restaurant food. These types of stays allow you to settle in more and soak up your surroundings, which can help you enjoy the trip better and avoid tourist traps.
And even if you’re not traveling, when you’re home, hosting through an app like Vrbo or Airbnb is a great way to earn extra cash for travel. You will also be able to meet other travelers and learn about their experiences, which can be great information when planning your next trip.
Insure your retirement trip
Unexpected things happen all the time. When you buy your plane tickets or book your hotel, remember to insure your purchases. For a small fee, you can have peace of mind knowing that if you need to cancel, your fees can be refunded.
If you are traveling abroad and have health insurance, it is a good idea to take out travel health insurance. Medicare only covers medical costs in the United States, so if you leave the country, you must be medically covered.
You will also want to have room in your budget for emergencies. For example, if you are injured while travelling, your travel health insurance will cover medical costs, but may not cover additional costs. If you want to go home early, you may have to do so at your own expense.
Work while you travel
Just because you’re retired doesn’t mean you have to stop making money. In fact, there are a lot of great hustles for retirees, many of which you can do while traveling. If you have an internet connection and a laptop, a job like business consulting or accounting can easily be done to earn more while traveling.
If you are staying somewhere long term, you may consider finding work locally. For example, many countries where English is not the main language have a great need for English tutors. Or if you’re staying in a tourist area, you might be able to find a part-time job at an amusement park.
Conclusion
Some retirees may see retirement as an opportunity to travel the world nonstop. Others may just want to take a few short trips a year, but mostly stay home.
No matter where you are on the spectrum, it’s important to plan a retirement trip if you want to.
Find savings where you can and put them in a investment account is an excellent starting point.
Retirement Planning Tips
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Consider contacting a financial advisor to find out if you should work in retirement. SmartAsset’s free tool connects you with up to three financial advisors who serve your area, and you can interview your advisors at no cost to decide which one is best for you. If you’re ready to find an advisor who can help you achieve your financial goals, start now.
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It’s important to make the most of your retirement. After all, you have earned it. To take full advantage of benefits like Social Security, The SmartAsset Social Security Calculator and our retirement guide can help you.
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