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Many retirees dream of spending their retirement traveling to destinations they didn't have time to visit while they were working.
You may have time to travel after retirement, but it's not cheap, and if you don't plan carefully, it could end up costing you a lot more than you had anticipated.
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Travel experts explain the best ways to travel comfortably in retirement without draining your savings.
Budgeting for Retirement
“A retirement travel budget is important,” says Jay Ternavan, founder of JayWay Travel. “Retirees should expect to spend 5% to 10% of their annual budget on travel, with some spending as much as $50,000 a year on longer trips. Using a tool like the U.S. Department of Labor's planning worksheet can help you outline your expenses and set a realistic travel budget.”
Jason Hull, a former CFP and owner of J&J Cash Home Buyers, retired at the end of 2019 and has been traveling internationally with his wife since 2021. Due to the nature of expenses incurred while traveling, Hull suggests retirees consider adopting the 50/30/20 budget rule: Money spent on travel should come from the 30% of money set aside for wants.
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Buy insurance
Insurance is also an important factor, Ternavan says. “Because Medicare has limited coverage outside the U.S., it's wise to purchase travel insurance that includes medical evacuation/repatriation coverage, medical expenses not covered by Medicare, trip cancellation/interruption coverage, and other related insurance,” he explained.
Long-term stays with Airbnb
Hull explained that Airbnb hosts often offer discounts for stays of 28 days or more, so he and his wife take advantage of longer stays, which offer better value.
“Also, staying longer allows you to get used to the city and there's no need to rush. If the weather is bad, you don't feel like you have to go see the tourist attractions. You can always go when the weather is better,” he said.
Buy your own ingredients and cook your own food
The benefit of staying in an Airbnb with a kitchen is that you can cook more often.
“I've recently cooked in Manchester, England, Cologne, Germany and Sydney, Australia. This has given me more opportunities to eat out in places with a lower cost of living, such as Chiang Mai, Thailand, Mexico City, Mexico and Madrid, Spain, but it's balanced out well,” Hull said.
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Take a free walking tour
Once you arrive in your new location, Hull suggested taking a free walking tour.
“We often use an app called GuruWalk to book a free walking tour on the second or third day after arriving somewhere,” he says. “The guides work on tips, so we usually pay $30 to $40 and hang out with locals who are very motivated. Nearly all of the free walking tours we've been on have been great.”
Find a balance between expensive and inexpensive places
If you're planning on visiting somewhere expensive, Hull suggests trying something cheaper next time.
“Instead of staying in Sydney, I stayed in Chiang Mai. Instead of staying in Manchester, I stayed in Istanbul,” he said.
Cruise instead of fly
Another way to keep costs down, Hull said, is to take a cruise rather than a flight, especially when traveling internationally.
“I took a transatlantic cruise from New York to Rome in 2022. The total cost was just a little more than the cost of two plane tickets, and I arrived without jet lag and ready to begin my adventure,” he said.
Plus, many cruises stop in beautiful locations and offer dining and entertainment all in one.
Take advantage of schedule flexibility
Travel blogger Jeni Franklin of Traveling Franklins says retirees already have the advantage over other travelers of schedule flexibility.
“They don't have to worry about taking paid time off or traveling during school holidays when the rest of the world must. They're in a position to travel while everyone else is at work or school,” she said. “This strategy alone can save you a lot on hotel and lodging costs, plus you'll enjoy fewer crowds.”
Take advantage of travel credit cards
Franklin also urged people to take advantage of credit card travel rewards. “Retirees have more time to learn how to maximize their day-to-day spending through credit card travel rewards,” she said.
Because retirees often spend a lot of time visiting family and buying gifts for their grandchildren, “using the right travel rewards credit card to earn points can help pay for travel without having to spend more than you would normally,” she said.
Consider house sitting
If your trip doesn't require a luxury hotel, Layne Tisdel Martin, travel agent and owner of Wanderluxed, a luxury travel agency and luxury travel blog, suggests house sitting through joining the TrustedHousesitters network.
She explained that people can stay in different locations around the world for free by helping their owners with chores like feeding the animals, picking up the mail and watering the houseplants.
But competition for popular spots is fierce: “Prepare a well-crafted application and be one of the first five sitters to put your name forward to a handful of happy options. Homeowners are very happy to receive applications from mature couples,” she explained.
RV Relocation
If you want to enjoy a fun trip in an RV but don't want to pay rental fees, you could consider RV relocation. “There are services that can connect you with car rental and RV rental companies who need to move your vehicle from one branch to another, and if you're moving intercountry, you can use your car or RV for free for a period of time,” Martin says.
You might also be able to add more days at a discount. “The highest price I've ever seen to move a camper in Canada was $25 a night, but if your dates work out, you can still get a good discount. Plus, retirees have more flexibility in their schedules,” says Martin. She recommended a site called Transfercar.
Fly with United MileagePlus miles
Martin’s favorite airline loyalty program is United MileagePlus because of its industry-leading reward availability and ease of earning miles.
“With loyalty programs like Alaska Airlines MileagePlan, you have to call a year in advance to find award seats to faraway or more exotic locations. With United MileagePlus, you can log online and book a flight from Chicago to Delhi, India this Friday for just 49,500 miles,” she said.
There are plenty of Chase credit cards that earn you up to 1.5 United miles for every dollar you spend, she says. She recommends the Chase Sapphire Preferred and Chase Freedom Unlimited. “With the sign-up bonuses, you can rack up enough miles for a long-haul round-trip flight in just a few months.”
As long as you factor in retirement travel costs up front, there are plenty of creative ways to save money and travel the world.
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This article originally appeared on GOBankingRates.com: 12 Ways to Travel in Retirement Without Draining Your Savings
