“I want to travel the world.” It’s a common answer to the oft asked question of what one plans to do when they retire. Whether it is an achievable goal or just an unrequited fantasy depends a lot on your finances. Since our mission statement is providing “budget travel advice for the over 50 crowd” it is a topic we have spent a lot of energy researching. I am also one to plan so the financial aspect of our travels have become an essential part. That does not mean we are experts, far from it, but we will share some of what we have learned. So, for your consideration, here are our top 5 debunked financial myths about retirement travel.
- It will be a once in a lifetime opportunity.
You may think that all your travel dreams will be realized after that one trip, but from experience I can tell you that is rarely the case. Travel is an expansive experience that opens your eyes to different cultures, art, history and cuisine. Whether you travel within your own country or expand your sights to an international market the world has so much to offer that will broaden your viewpoint. If you are like us, travel is addictive and every trip ends with us wanting to go abroad again.
- The money will be available when I need it.
Perhaps you have a windfall pending that will give you the money you need to travel, but for many of us that is not the case. Unless you consider going into debt as the solution then it is important to find a better way to finance your travels.
- I do not need to budget anymore.
Many people look to retirement as the time when they can relax their stringent attention to budgeting limited income. Regardless of your retirement plans a budget remains a good idea. When you want to incorporate travel than it needs to be as much a part of your budget as your cell phone bill and property taxes. Even those on a limited budget can find travel opportunities that they can afford, however it will take some pre-planning. We started putting money aside each month into our travel account, and purchase foreign currency on a regular basis in order to dollar cost average the fluctuations in value. Some banks offer pre-paid foreign currency VISA cards that allow you to buy and store currency in a chip and pin protected format.
- I cannot get travel insurance.
There is no doubt that travel insurance increases in price as you age, even more so depending on your health. As a result this should be part of your budget planning. Get quotes from various carriers, including the add-on coverage from such sources as your credit card. Layer up your protection from these sources until you are comfortable with both the coverage and the cost. Keep in mind that some pre-existing conditions, such as high blood pressure, if treated and under control are fine. Make sure you are spending the money on what you really need. Out of country emergency medical is essential but lost luggage may not be.
- I can figure this out on my own.
With experience you probably can, but until then you need the help of a trained professional. Contact a financial advisor to help you plan your retirement and as part of that conversation ask about budgeting for travel and what that will look like based on your financial situation. A good financial advisor will give you different options on how you can use your assets and get the most from what you have. They are also a source for travel insurance. Use a travel agent to get quotes on different travel options and as an easy and safe way to make your travel arrangements. Remember however that an agent can represent or support a specific travel provider or cruise line, so get competitive quotes from a variety of sources. There are luxury hotels, cruise lines and tour operators and lower-priced options of the same. Find the one that suits your needs and budget.
Whether you stay at a 5 star hotel or an efficiency apartment, take a taxi or figure out the subway system, enjoy being pampered or roughing it with the locals, all of your travel dreams can come true. You may just need a more realistic plan to go along with “when you wish upon a star…”.