Guest commentary: Turning retirement dreams into travel realities
By Sarah Reznick
For many people, retirement represents something they have been working toward and dreaming about for decades: having more control over their time.
They imagine spending more time with family, pursuing long-delayed interests and hobbies, or simply sleeping in with nowhere to be on a Tuesday. For many retirees, that freedom also means traveling to well-loved destinations and discovering places they’ve long wanted to see.
A bucket list is an excellent place to start. But turning those travel dreams into reality takes some planning. Travel can become one of the largest discretionary expenses in retirement, particularly during the early years when many people are healthy and eager to make the most of their newfound freedom.
That makes travel worth considering as part of a retirement strategy, rather than expecting to use whatever money happens to be left over.
THINK ABOUT WHEN YOU WANT TO TRAVEL
Retirement spending isn’t necessarily going to look the same from one decade to the next. Someone who wants to take an extended European trip every year at age 65 may have very different priorities at 75 or 85.
That doesn’t mean you need to predict the future. It means recognizing that your spending may change over time.
If travel is especially important to you, you may want to plan for higher discretionary spending in the early years of retirement. Building that into your financial plan can give you more confidence to take the trips you’ve been waiting for instead of continually telling yourself you’ll do it next year.
GET SPECIFIC ABOUT WHAT TRAVEL MEANS TO YOU
“Travel” can mean very different things to different people.
Maybe it’s an annual trip overseas. Maybe it’s several weeks in Europe, an extended RV trip through the West, or more frequent visits to see children and grandchildren. Maybe it’s simply having the flexibility to take a spontaneous long weekend.
Those choices have very different price tags.
Before estimating what you will need, think about how you actually want to travel. How often? For how long? Where? What kind of accommodations? Are you willing to travel during the off-season? Would you rather spend more on a few memorable trips or take more frequent, less expensive ones?
The more clearly you can answer those questions, the easier it becomes to build a travel budget that reflects your actual plans.
MAKE FLEXIBILITY WORK IN YOUR FAVOR
One advantage retirees often have is something that was in short supply during their working years: flexibility.
If your schedule isn’t tied to a vacation calendar, you may be able to travel during less busy periods. Staying longer in one destination can sometimes make a rental more economical than paying nightly hotel rates. And planning well in advance can give you more choices when it comes to flights, lodging and activities.
The goal isn’t to make every trip as inexpensive as possible or skip the treats, tours and excursions that make a trip special. It’s to decide where you want to spend your money, and to make room for experiences that matter most to you.
DON’T OVERLOOK THE LESS EXCITING DETAILS
The financial side of a trip doesn’t end when you book the plane ticket.
Health insurance coverage, travel insurance and cancellation policies can become particularly important in retirement. Medicare generally doesn’t cover health care outside the United States, so international travelers should understand what coverage they have and whether additional protection makes sense for their circumstances.
It is also worth considering the financial consequences of an unexpected event that forces you to cancel a trip or return home early. A little preparation can prevent an expensive surprise from overshadowing an otherwise memorable experience.
BUILD THE RETIREMENT YOU ACTUALLY WANT
Retirement planning is often framed around a number: How much do I need to retire?
That’s an important question, but it isn’t the only one. A more personal question is: What do I want my retirement to look like?
There is no single right way to spend retirement. The important thing is to build a plan around the life you want to live, act on it and then permit yourself to enjoy it.
• Sarah Reznick is a financial advisor with Sherfina Advisors, a financial advisory practice of Ameriprise Financial Services, LLC.
