Saving Advice - I caught the travel bug early and started working on my bucket list much earlier in life than most people. But after living and working overseas for more than a decade, I came back to the U.S. to be closer to family. Although I’m currently living here, my husband and I take opportunities to get away whenever we can. We are also considering retiring to another country. However, it can pose some unique challenges, especially if you’re traveling internationally. If you have similar ideas for your golden years, here are 7 things you need to know about traveling in retirement.
7 Things You Should Know About Traveling in Retirement
1. You must be realistic with your budget. The reality is that traveling gets expensive. And, the price goes up if you have a taste for luxury or exotic locales. Even the best budgeters can’t negate all the costs of traveling. Therefore, you need to be realistic with your budget to avoid overspending. This becomes even more critical when you are living on a fixed income.
While it can make traveling more difficult, that doesn’t mean it’s impossible. If you research the costs, start saving early, and choose a destination that won’t break the bank, you can still enjoy traveling in retirement. But if you still find it difficult to finance your trips, you may consider partially retiring or taking on consultant work to help you afford the lifestyle you want.
2. Be mindful of your health restrictions and physical limitations. I’ve always been an adventurous spirit and had the chance to explore far corners of the world. While it has taken me to some amazing places, some of them were extremely remote and not easily accessible. And if it was hard at 25, I can only imagine how much more difficult it will be at 65.
Even now, I have to be aware of my physical limitations and factor them into our travel plans. So, we always leave room in our itinerary for downtime after strenuous activities and long travel days. And, I expect we will need even more flexibility the older we get.
Although illness and injury become more common with age, there is also a greater chance you will develop disabilities or physical limitations. While the United States has many accessibility laws, other countries may have different ones, or none at all. If you discover that a particular place doesn’t have the accommodations you need, then you may want to adjust your travel plans.
3. Your health insurance may not extend to foreign countries. While we’re on the topic of health, it’s also wise to review your current health insurance policy before you travel. Private plans usually provide some level of international coverage. But, they may require you to pay the costs upfront and turn in receipts for reimbursement.
If you have a basic Medicare plan, it won’t be much help if you need medical care in another country. You may need to purchase gap coverage if you plan to spend a lot of time outside the U.S. This will ensure you can get medical attention no matter where you are. However, you will also have to add the expense to your budget and adjust accordingly.
4. Travel insurance is worth the extra expense. When you become a frequent traveler, you soon realize the value of purchasing travel insurance. Each reservation creates more opportunities for canceled flights, missed connections, lost reservations and luggage, service failures, and other unforeseen complications. Having travel insurance gives you financial protection and flexibility when things go wrong.
From my experience, paying a little extra is well worth the money. Rather than remain at the mercy of service providers, you can avoid the fees when plans change or issues arise. Although you won’t need it for most trips, travel insurance provides a safety net for when you do.
5. Many people have the same plans for traveling in retirement. Many people dream of the day when they can leave the daily grind behind and embrace a life of travel. Unfortunately, these plans often include the same places. So if you choose a popular vacation destination or time to travel, you will have to deal with large crowds, limited accommodations, and higher prices.
The good news is that you are no longer bound to a work schedule, so you can enjoy top tourist spots whenever you like. And if you still prefer to travel around holidays and peak season, you just need to plan ahead and book early. However, you may also consider other places that have the same appeal but take you off the beaten path. Not only will this give you the chance to get away from the bustling crowds, but you can fully immerse yourself in your surroundings as well.
6. There are ways to make traveling more affordable. In the past, I’ve purchased packages through third-party websites because it’s fast and convenient. But, I later learned that they don’t always give you the best deals. There have been times I booked and then found lower rates after it was too late to cancel or make changes.
If budget is your top concern, there are better ways to save money. I start my search with these sites to compare prices and set alerts. However, I make my reservations directly through the service provider. First off, it makes it easier to manage and change your reservations. Secondly, many companies will match and beat competitors’ prices if you find cheaper rates.
Here are a few more ways you can make traveling more affordable:
- Ask about discounts. They offer better rates for senior citizens and memberships like AARP, AAA, and Costco (NASDAQ:COST).
- Travel in the off-season.
- Be flexible with travel dates.
- Join a loyalty program and use reward points and miles.
- Consider other types of accommodations.
- Get familiar with public transportation.
- Plan free activities and visit free attractions.
- Look at countries with favorable exchange rates to stretch your budget even further.
7. Prepare all your paperwork and documentation before you go. I’ve always been a planner, so I always check our reservations and ensure all our paperwork is in order well before the departure date. I’ve witnessed situations of people being denied departure because they failed to plan ahead.
Therefore, I run through a checklist to remove some of the stress during the planning stages.
- Confirm your reservations. Then, download them to your phone or print them out for later reference.
- Check your IDs. If your ID is expired, they will refuse to let you travel. If you are due for a new one, renew in person or online months in advance.
- Apply for entry visas. Americans get landing visas in many countries. However, some still require you to apply for an entry visa. It can be a hassle if you are unable to complete it online. But, you can fill out the forms and have them ready when you arrive.
- Notify your credit card company. This is important to ensure they don’t flag international charges as fraudulent and freeze your account while you’re in another country.
- Take inventory of your medications. As you pack, compile a list of all your medications in case the customs officer asks. Your traveling companions and medical staff will also appreciate this if there is a healthcare emergency.
Traveling to the remote corners of the world has been a dream come true. But, it takes significant time and planning if you are doing it on a fixed budget. While these factors can make it more difficult, it isn’t impossible. If your heart is set on traveling in retirement, do your research so you know what to expect and how much it will cost. This will greatly reduce the chances of unexpected and expensive surprises.