{"id":160333,"date":"2025-09-22T05:24:09","date_gmt":"2025-09-22T05:24:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/160333\/"},"modified":"2025-09-22T05:24:09","modified_gmt":"2025-09-22T05:24:09","slug":"can-you-afford-to-travel-every-year-in-retirement","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/160333\/","title":{"rendered":"Can You Afford To Travel Every Year In Retirement?"},"content":{"rendered":"

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For many people, travel is one of their retirement goals.<\/a> However, it\u2019s one of the largest expenses in retirement. And if you\u2019re not careful, it can drain your savings <\/a>faster. <\/p>\n

So, can you afford to travel every year once you retire<\/a>? According to finance experts, yes, you can, but only if you plan early. Here\u2019s what they recommend doing to make this happen.<\/p>\n

Build a Travel Fund Before You Retire<\/p>\n

Don\u2019t wait until you\u2019re already retired to figure out how you\u2019ll pay for travel. Start early and treat travel like any other essential retirement expense.<\/p>\n<\/p>\n

\u201cYour retirement plan should include travel expenses as an essential financial commitment. Think ahead and allocate funds for your dreams,\u201d said Trevor Houston, CEO at ClearPath Wealth Strategies<\/a>. \u201cCreating a separate travel fund with small monthly deposits allows you to establish a budget that can help eliminate travel expenses.\u201d<\/p>\n

By setting aside money for travel during your working years, you can avoid dipping into your retirement savings<\/a>.<\/p>\n

Know What Kind of Travel You Want and Plan Accordingly<\/p>\n

Knowing what kind of travel you want in retirement can help you budget<\/a> for it. There\u2019s a huge difference between quarterly weekend getaways and two international luxury trips per year.\u00a0<\/p>\n

\u201cPeople should be clear about where they\u2019d like to travel to and what heights of luxury they want to experience,\u201d said Lukendric Washington, owner of Manifest Wealth Management<\/a>. \u201cSome people simply want a Caribbean cruise each year, but there are others who want to travel to Switzerland and Japan, and they want to do it in style.\u201d\u00a0<\/p>\n

Washington also suggests thinking about how many active travel years you might realistically have in retirement.<\/p>\n<\/p>\n

Estimate How Much You\u2019ll Need To Save<\/p>\n

Once you know the kind of travel you want and how often, it\u2019ll be easy to estimate the amount you need to save before retirement.\u00a0<\/a><\/p>\n

According to Jay Zigmont, founder of Childfree Wealth<\/a>, \u201cIf you want to spend $10k per year traveling, you will need an extra $250k saved before you retire. This estimate is based on the 4% safe withdrawal rate. To calculate how much extra you need to save, take your annual travel goal and multiply it by 25.\u201d<\/p>\n<\/p>\n

This number will vary depending on your travel goals, but it can help you figure out a realistic budget.<\/p>\n

Consider Slow Travel To Maximize Your Budget<\/p>\n

If you\u2019re open to changing the way you travel, you can stretch your budget without sacrificing the experience.\u00a0<\/p>\n

\u201cSpending more time in fewer locations can sometimes cost less than rushing and hopping between different destinations,\u201d said Houston. \u201cThe cost of living as a local in a vacation home for a month can be far cheaper than moving between resorts and flights.\u201d<\/p>\n

Think Beyond Yourself<\/p>\n

You also want to consider who else might be on your travel plans. Will you bring your spouse, children, or grandchildren along? These added costs can affect your budget, and you should plan for them in advance.\u00a0<\/p>\n

\u201cYou should be intentional about the details. Before you do it, ask yourself. Where are you going? Who are you going with? What do you want to do when you\u2019re there? And how well do you want to do it?\u201d said Washington.<\/p>\n","protected":false},"excerpt":{"rendered":"goodluz \/ Shutterstock.com Commitment to Our Readers GOBankingRates’ editorial team is committed to bringing you unbiased reviews and…\n","protected":false},"author":2,"featured_media":160334,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,186,9549,184,185,13558,1793],"class_list":{"0":"post-160333","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-au","9":"tag-australia","10":"tag-business","11":"tag-finance","12":"tag-gobankingrates","13":"tag-personal-finance","14":"tag-personalfinance","15":"tag-planning","16":"tag-retirement"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/160333","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=160333"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/160333\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/160334"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=160333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=160333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=160333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}