How to Affordably Travel in Retirement

Retirement offers the exciting opportunity to travel. You’ve worked hard, saved your money, and now wish to enjoy it. The world awaits, brimming with cultural immersion, historical exploration, and natural wonders, all things you may have visualized for your retirement. But navigating travel in this phase of life raises an important question: how can you embark on these amazing experiences without exceeding your retirement budget?

Our goal with this blog is to empower you to see what may be possible when it comes to your traveling dreams in retirement. That’s why retirement planning is so important. By adopting a strategic approach that blends planning with flexibility, you'll unlock a world of affordable travel opportunities. We even talked with a financial advisor to give us his two cents into how you can best travel affordably.

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Plan Your Budget

Your budget depends on the type of travel you’re looking for, says Sam Williams, a Financial Advisor with Premier Financial Consultants. This could include flying domestic or international, how long you’ll be at your destination, and whether you’re seeking luxury or budget-friendly accommodations. The activities you choose to book also play a major role in budgeting. 

You may assess your income and estimate your expenses to come up with a realistic travel budget. It’s important to know that your expenses will change depending on your final vacation destination.

“As a general answer, a single individual should budget between $5,000 to $10,000, and a married couple should plan for $7,500 to $15,000,” says Williams. “This should cover one to a few trips in a year, depending on some of the aforementioned factors.”

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Find Affordable Destinations

Everyone’s preference is different when it comes to traveling and finding destinations you may wish to explore. But considering travel is often expensive, destinations with a favorable exchange rate are often more desirable. Your money may stretch farther in countries with a weaker currency than the United States dollar.

If there is an expensive destination you’re dying to get to, consider traveling during the shoulder season, the period between peak and off-seasons. You may find lower airfare and hotel rates.

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Save on Transportation

In regards to flying, try to be flexible with your travel dates. Airlines and other transportation providers often offer cheaper fares on weekdays. If you're flying domestically, check prices for flights from smaller airports in your area, as these may be slightly cheaper than larger hubs.

Once at your destination, consider public transportation (depending on where you are, of course). Trains, buses, and ferries are often cheaper options than renting cars or paying for ride-sharing services. 

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Seek Affordable Accommodations

You may qualify for a senior discount at select hotels or resorts, but don’t be afraid to look beyond traditional hotels. Vacation rentals through platforms like Airbnb or Vrbo often allow you to save money and give you amenities you won’t find at a hotel, like a full kitchen (to save on some dining expenses while you're there.)

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Find Affordable Travel Insurance

You don’t want to be stuck overseas without some sort of coverage, especially in the case of an emergency. Williams suggests checking your current insurance policy for what is covered, and also checking with the credit card company used to book your trip as they may offer coverage for certain unexpected expenses, like trip cancellation or rental car insurance.

“Once you know what your current health insurance and credit card company covers, consider what other areas you’re looking to cover, like emergency medical treatment or hospitalization,” he says. “Research different comprehensive travel insurance to fill in any gaps and plan to spend five to ten percent of what your total trip costs.” If your trip costs $2,000, then you can expect travel insurance to be roughly $100 to $200, adds Williams.

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Top 3 Travel Tips From a Financial Advisor

There’s a lot that goes into traveling, whether in retirement or not. But you’ve worked for years and now deserve some time to relax and explore. Plus, you want your retirement to last. We asked Williams his top three tips for traveling in retirement. 

1. Start with a plan. “Determine what places you want to see, activities you want to do, and what your estimated costs will be,” Williams says. “Prioritize the more physically demanding or longer trips in your early years of retirement when your health can match your determination.”

2. Budget and save. “You may create a separate bank account for your vacation fund and set up monthly deposits,” Williams says. When you find your next big vacation, you already have money set aside to cover the travel expenses without disrupting your normal monthly budget. “Another fantastic budget hack is using credit card points and miles,” says Williams. “This is not for everyone but this can help pay for your vacations.”

3. Be flexible. “You can save a lot of money by traveling during off-peak seasons,” he says. “Track your next flight and take advantage of a good deal when there is a random price drop.” Regarding places to stay, look at other options instead of hotels, like Airbnb, VRBO, hostels, and campsites, says Williams. “All these options can save you money if you’re willing to be flexible,” he says.

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‍Interested in learning more about traveling in retirement? Consider attending one of our retirement seminars or webinars, hosted by experienced financial advisors who may be able to help you.