Though trips for retirees are indeed common—with at least 25 percent of those 65 and older leaving the country annually—sometimes, finances play a factor. That’s why it’s smart to not only start thinking about where you’ll go when you travel in retirement but also how you’ll pay for it. And, of course, how to save on costs. We spoke with money and travel experts to map your retirement world tour, geographically and financially. But how much money will you actually have when you do retire? According to data from the Federal Reserve, the average 65- to 69-year old has $206,819.53 in retirement savings. When you tally up a mortgage, utilities, and other expenses, that may not last as long as you’d like. That’s why financial therapist Erika Wasserman suggests a separate fund for retirement travel—and, more importantly, a budget to give you the wiggle-room you need to make it a reality. “First, define how you want to retire,” Wasserman says. “For example, how many trips you would like to take a year. Create a realistic budget to live that lifestyle.” RELATED: How to Make Your Money Last Through Retirement But hey, since you’re retired, you should also treat yourself. After burning the midnight oil for so long, it’s time to enjoy at least some fine things in life, Mackin says. “Even with the right financial planning, no trip is complete without a last-minute indulgence,” Mackin adds. “Allow for wiggle room to account for an unexpected shopping spree, a last-minute excursion, or the realization that you must dine at the Michelin star restaurant on your final night.” That’s why it’s essential to narrow down your travel wishes into what Virtuoso travel advisor Sandy Pappas calls a wanderlist. Once you’ve determined what you absolutely have to see, you can start to plan based on your age. For example, you might not want to take a four-day flight when you’re 80, but at 67, you’ll be fine. “I work with my clients to prioritize these bucket list trips,” Pappas says. “For example, if Africa, Australia, or New Zealand are on their wish list, I suggest that they take these types of trips sooner rather than later, due to the long-haul flights. Longer flights take more out of people, so I always suggest that they do those earlier in their retired life. Australia is a huge country requiring flights between destinations, so it is an active trip.” “Say you’re hiking in the Swiss Alps or on a walking tour on Santorini in Greece, and you fall and break your hip,” Pappas explains. “Traditional policy coverage will provide medical evacuation to the nearest hospital in the destination. But if you would prefer to be flown back to the United States to rehab, then you must have coverage for medical evacuation to the hospital of your choice.” Make sure to read the fine print and ask friends for the type of policies they trust. You don’t want to get caught in an expensive debacle abroad that’s already stressful enough with a language barrier, but that could also cost your travel budget for the year, Pappas says. For retirement travel, Mackin says renting a home is a cost-effective and comfortable way to travel. You can also travel slower and stay longer since many vacation rental companies, like Airbnb, will offer monthly discounts for extended bookings. This way, you can enjoy all there is to love about the beaches in Mexico in a home without steps, blowing cold air conditioning, and stocked with all the kitchen essentials you need to make your signature dishes. This is becoming a popular way for people in the 60 or older crowd to travel, and in 2018, Airbnb reported this group as their fastest-growing demographic. “It may be a motorcoach tour or a river cruise through Europe or the U.S.,” Friedman says. “Well-traveled [people] are interested in more exotic experiences like Antarctic cruises or African safaris. Many active retirement communities set up travel clubs so that people can travel together.” Friedman also sees a growing trend in skip-generation trips, where retirees bring their grandchildren along for trips. Since you may not have had the opportunity to jet-set at their age, you now have the chance to witness a new destination or country through their eyes, spurring a new cycle of wanderlust.
