The Golden Age of Travel
For many retirees, travel sits at the very top of their retirement wish list. Whether it’s exploring ancient ruins in Greece, relaxing on pristine beaches in the South Pacific, or taking the grandchildren to theme parks, retirement can offer the time and flexibility to pursue these adventures.
However, transforming travel aspirations into reality requires more than just enthusiasm. A well-structured approach to funding your adventures can help ensure you enjoy memorable experiences whilst maintaining your long-term financial security.
Understanding the True Cost of Travel in Retirement
Before booking your first post-retirement trip, it’s worth considering the full scope of travel expenses. Beyond flights and accommodation, travellers typically encounter costs such as travel insurance (which may increase with age), dining and entertainment, local transportation, activities and excursions, and currency exchange considerations.
Health-related expenses deserve particular attention. As we age, comprehensive travel insurance becomes increasingly important — and potentially more expensive. Many retirees find that factoring in these costs early helps avoid unwelcome surprises.
Creating a Dedicated Travel Fund
One strategy that many successful retiree travellers employ is establishing a separate travel fund. This approach can offer several advantages:
- Clear boundaries: A dedicated fund helps separate travel spending from essential living expenses
- Guilt-free enjoyment: Knowing your adventures are funded from a designated source may allow you to relax and enjoy your experiences more fully
- Flexible timing: Building a travel fund allows you to take advantage of opportunities as they arise
Consider working with your financial adviser to determine an appropriate allocation for travel within your overall retirement budget. This figure will depend on your total retirement assets, income sources, other financial goals, and desired travel frequency and style.
Timing Your Adventures Wisely
Many financial planners suggest that the early years of retirement — often called the ‘go-go years’ — may be the optimal time for more ambitious travel. During this period, retirees typically enjoy better health and higher energy levels for adventurous experiences.
This doesn’t mean travel stops later in retirement, but the nature of travel often evolves. Understanding this pattern can help you prioritise which experiences to pursue first.
Stretching Your Travel Budget
Retirement offers flexibility that working life rarely permits. Consider these strategies to maximise your travel experiences:
- Shoulder season travel: Visiting destinations just before or after peak season often means lower prices and fewer crowds
- Extended stays: Longer trips to fewer destinations can reduce overall costs whilst providing deeper experiences
- Loyalty programmes: Accumulated points and miles from your working years may fund significant portions of your travels
- House swapping or home rentals: These alternatives to traditional hotels can offer cost savings and more authentic experiences
Protecting Your Travel Investment
Appropriate insurance coverage is essential for retiree travellers. Beyond standard travel insurance, consider whether your policy adequately covers medical emergencies abroad, trip cancellation or interruption, and existing health conditions.
Review your coverage carefully before each trip, as policies can change and your health circumstances may evolve.
Balancing Dreams with Security
The key to sustainable retirement travel lies in balance. Your travel plans should complement — not compromise — your broader financial security. Regular reviews with your financial adviser can help ensure your adventures remain affordable whilst protecting your long-term wellbeing.
With thoughtful planning, your retirement years can be filled with enriching experiences that create lasting memories. The world is waiting — and with the right preparation, you can explore it with confidence.
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Ronald J. Briggs Jr., FIC, CRPC®, is an industry veteran with more than four decades of experience and the founder of Briggs Financial Group, Wealth Advisors (BFG). Alongside his team of tax and risk mitigation specialists, Ron serves clients across the U.S. from dual national headquarters in Brighton, Michigan and Bonita Springs, Florida.
BFG grew out of a firm Ron founded in late 2010: Caitlin John Private Wealth Management, a fiduciary Registered Investment Advisor named for the middle names of his and his wife Kristin's two children. His vision was to build a fiduciary-based advisory practice capable of serving his clients and the generations that follow them.
The boutique feel and personalized experience Ron's clients came to expect drew the attention of other advisors, both locally and nationally, and the firm grew accordingly. Each of those advisors joined Caitlin John to practice under a truly independent, fiduciary RIA while keeping the individual brand and identity they had built in their own community.
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