Retirement is a great time to go travelling and explore the world. However, travelling can take a huge chunk out of your retirement fund if you do not budget carefully. Of course, travelling the world will always come with a certain amount of expense – but you can decide how much luxury you include in your retirement travelling plans.
Make a list of the places you would like to visit in your retirement and the attractions you’d like to see. Your trips should be planned carefully, far in advance, to ensure you’re getting the most bang for your buck. Here are a few finance tips to bear in mind when planning your travel plans.
You need to create a budget that is realistic for everything you need to pay for. You need to factor in flights, accommodation, food, activities and much more. You should also consider the price of long-distance transportation and whether you can group a few places into one trip. For example, if you spend a lot of money on a long-haul flight to California, make sure to visit a few places within the area to get the full experience.
You might have slept in hostels and random couches when you were travelling in your 20s. But you will probably want a little more luxury and comfort in your retirement travel years. So, consider renting a home, instead of just a hotel room, to give you a little more space and room to relax. Just remember to factor comfort into your budget so you can plan accordingly.
Give yourself wiggle room
Other expenses will crop up when you are travelling, and you may find yourself exceeding the original budget. Remember to leave yourself a little flexibility so that if there’s an attraction you want to see, you can splash out on it. You may need to cut back on accommodation costs at the next destination or tighten your belt when you get home. Adjust your budget accordingly and try to stick to your estimated numbers.
Most of us will have a pension to use when we retire – whether this is a private or state pension. You can use this cash to fund your travelling and support your lifestyle back home. Get an equity release from your home to gain access to more funds and financial flexibility.
Carry on working
If you don’t have the funds to travel as widely as you would like, then you may have to continue working throughout your retirement. You could carry on working after you are of retirement age or set up a small income revenue on the side for a little extra cash. Some people set up a dog walking business, ironing service, or selling items they no longer use.
Retirement is a time to have fun and see the world – look at your finances, and plan for the future!