BUDGET TRAVEL PLAN FOR SENIORS

 

 

Retirement is the perfect time to explore the world, fulfilling those travel dreams you’ve nurtured throughout your working years. In fact, a recent survey by the Transamerica Center for Retirement Studies confirms my own post retirement plans. It suggests that 60% of retirees dream of spending their golden years traveling. And it's no wonder—travel can broaden our horizons, rejuvenate our spirits, and create lasting memories. But, retirement is also the time when your earnings are limited and concerns of big spending on health emergencies maximum. The good news is that with thoughtful planning and a few savvy strategies, retirees can satisfy their wanderlust without draining their savings. Let us see how we can make the most of our retirement travel dreams while keeping our savings intact.

 

1. Make a retirement travel budget

As a retiree, having a dedicated travel budget can help you afford the trips and experiences you've been looking forward to. Typically, retirees spend around 55-80% of their pre-retirement income each year. However, if you plan to travel often, you may need to budget more for the same. To create a realistic travel budget, research the costs of your desired destinations, including living expenses, food, and activities.

 

2. Try the 50/30/20 spending rule to budget for travel in retirement

A helpful way to plan for travel in retirement is the 50/30/20 rule. This rule divides your after-tax money into three parts: 50% for essentials, 30% for things you enjoy, and 20% for augmenting your savings. Travel falls under the "things you enjoy" category. Most retirees spend about 5% to 10% of their yearly budget on travel. Some retirees save up a lump sum each year for a big trip, like Rs. 500,000 for an overseas couple vacation. Others might plan on spending around Rs. 200,000 per year for the next decade or so travelling inland.

 

3. Plan your trip as far in advance as possible

The earlier you plan your trip, the better. Airlines usually open up their flight schedules about 11 months before the travel date. Instead of booking immediately, spend some time looking at prices for your trip. This way, you'll be able to spot a good deal when you see it. A good time to book domestic flights is usually one to three months before your trip, and two to eight months before for international flights.

 

4. Travel on Tuesdays

When booking flights, Tuesday is almost always the cheapest priced day of the week to travel, due to the low demand for flights on this day. If you’re willing and able to travel out and/or back on a Tuesday, this will save you some money.

 

5. Travel off-peak

The cheapest time to visit a place is when no one else wants to go. As retirees for you everyday is a holiday, so why do you want to compete with regular travelers and jostle with the crowd?  For some destinations, visiting in low season is not only more affordable, but far more pleasant given the lack of crowds. For other places, it might not be feasible: maybe the weather will be prohibitive, or the key attractions will be closed. If that's the case, opt for the shoulder seasons. Either way, you'll save.

I have a blog written on the benefits of off season travel, and you can read it by clicking: https://surajitbrainwaves.blogspot.com/2022/08/the-joy-of-off-season-travel.html

 

6. Be flexible with your destinations

Keep your holiday options open, in terms of both destination and timing. Watch for flight sales and accommodation discounts. Keep an eye out for great deals. Eventually, you'll be able to nab a trip to… somewhere, for a great price. Sometimes some of the most amazing destinations in the world aren’t on your radar yet but are totally worth the trip. Often they’ll even been cheaper too.

 

7. Save on Visa charges

Some countries don’t require visas for entry as a short term traveller, and others charge for the privilege of entering. Be aware what you’re getting into, as you can plan your journey around destinations with cheap visa processes.

 

 

8. Consider staying in Airbnbs / OYO accommodations

 Thanks to vacation rental platforms like Airbnb and OYO, travelers can skip traditional hotels and choose from various condos, apartments, or houses. Hosts on Airbnb often provide discounts for stays of 28 days or more, making longer visits more budget-friendly. Staying longer also allows for a smoother adjustment to a new city, reducing the pressure to see everything at once. If the weather isn’t favorable one day, there’s no rush to visit a tourist spot; you can wait for a nicer day.

 

9. Exchange currency wisely

Don't let currency exchange fees eat into your travel budget. Before you go, do some research to find the best exchange rates. Compare what banks, currency exchange booths, and ATMs are offering. The trick is to find a bank card that doesn't charge for foreign transactions or accessing foreign ATMs. It's also worth looking into cards that allow you to load up in a foreign currency, to take advantage of a strong exchange rate.

Using a credit card with no foreign transaction fees can be a good option for purchases, but double-check if there are any extra charges for converting currencies. Another tip is to withdraw larger amounts of local currency at once to minimize ATM fees. Just be sure to keep your cash safe! No matter where you are in the world always keep some US Dollars with you for contingency and emergency.

 

10. Use travel credit cards

Financial advisors suggest using credit card travel rewards. With more free time, retirees can learn how to get the best value from their daily expenses through these rewards. As they often spend time with family or purchasing gifts for grandchildren, using the right travel rewards cards can help them earn points for their trips without increasing their usual spending.

 

11. Get a sense of local prices before you arrive at your destination

Having a basic idea of what things usually cost in different destinations can help you avoid being overcharged, like a hidden "tourist tax." For example, check the average taxi fares before you go so you have a general idea of what to expect. Look up typical prices for things at the market so you can feel more confident when you're bargaining. Knowing how to buy official bus tickets ahead of time can help you avoid paying too much for a bus ride.

Tip: Websites like Numbeo or Expatistan can be useful for getting a sense of the cost of living in different destinations. They often have information on things like groceries, transportation, and dining out, which can help you plan your budget more accurately.

 

 

12. Use public transport

Save money on transportation by using buses, trains, and ferries instead of taxis. It's cheaper and a great way to experience the local culture. Many cities offer passes that give you unlimited rides for a few days, which can help you save you even more. Or, of course, you could save even more money and walk. You'll see far more of a city if you do this, plus work off a few of those buffet breakfasts.

You don’t always have to take a bus or a train. Try local fishing boats, kayaks, trams, scooters, rickshaws etc. There’s certainly no good reason not to do a little exploring to find a way of getting around that you wouldn’t find back home, and often it’ll be a lot cheaper.

 

13. Join free tours

In most major cities these days you'll find multiple options for free tours. These are usually government-funded walking tours that could be general introductions to a city, or quite focused special-interest tours, all hosted by passionate locals keen to share their city. The open top big red bus is very economical and has audio guides too.

 

14. Go to free attractions

Some of the world's most famous tourist attractions cost nothing to visit. Think Central Park in New York; pretty much all of the museums and galleries in London; the Grand Bazaar in Istanbul; the Smithsonian in Washington DC.

 

15. Visit free galleries and museums

Some cities like London and Berlin are full of free museums, including numerous collections of art and history that are free to the viewing public. Other cities charge a small fee for entrance into their museums, but even those places frequently offer discounts and even free days. Google it!

 

16. Shop and haggle like locals

Shop in local markets and not in tourist stores. Temple Bar in Dublin is home to 3 different types of markets all held over the weekend. They offer cheaper and more unique souvenirs than what you will find in the shops. In many cultures it’s the norm to bargain a price down from the asking price. It may not feel comfortable but it’s normal. But, also know when to stop and pay a decent price.

 

17. Cook food or eat where locals eat

If you are staying long in a Airbnb then buy fish, chicken, vegetables, pulses and rice and cook your own food. It cuts down your food bill drastically. Occasionally you can go to eateries where locals eat and avoid 5 star restaurents. Street food is great for breakfast and lunch and a quite home cooked dinner is usually just fine.

 

18. Claim the tax back

Each country has a different process but it is definitely worth investigating if you can claim the taxes of your purchases during your holidays. Look for the tax free logo in the establishments you visit. Some will require a minimal purchase expense and you will usually have to present the passport. Once at the airport back home, before checking in, introduce yourself at the tax return stand to complete the process.

 

Travel extensively and enjoy your golden retirement years. Don’t just hop from place to place but make it a long and languid vacation and enjoy the new place, the new culture and the new society. Nothing is more enjoyable and educational than this.