What is the one thing you can buy that makes you richer and not poorer? Retirement travel. Whether you are planning a weekend trip to visit family or around the world expedition, travel enriches our lives.
Hitting the road after retirement, whether by car, plane, or cruise ship, is the goal of many people thinking about their work-free future.
Both retirees and those years away from retirement look forward to relaxation, travel, family time, and leisure activities. In a study by Bank of America indicated that 95 percent of retirees would prefer to have enjoyable experiences over buying things. Travel is a way to achieve this — whether visiting out-of-town relatives or vacationing together.
Travel Options for Retirees
Cruises offer many choices, from river cruises in Europe, Asia, and South America, to ocean cruises just about anywhere in the world. Nearly all-inclusive with most details planned ahead, the ability to visit many places easily, on-board entertainment, quality dining, and specialized themes, cruises are attracting more travelers each year.
Train travel takes passengers away from highway traffic and airport crowds, while allowing them to enjoy the surrounding scenery in comfort. Domestic and international routes cover many popular destinations, and for long trips, private sleeping quarters are available. Lounges, restaurants, bar cars, and room to move around make train travel a desirable alternative for travelers.
Many retirees want the total freedom and access to out-of-the-way places that road trips offer. Recreational vehicle sales are increasing each year as more retirees are getting on the road in this relatively low-cost mode of travel. If rolling through the country in an RV sounds appealing, a good way to start is with a rental. Before investing in a vehicle, it’s important to be sure it meets one’s needs and capabilities.
Volunteer vacations offer travel along with an opportunity to contribute skills and experience to others both domestic and abroad. Many are finding these trips to be rewarding, and they can also fulfill the desire to interact with locals and broaden cultural experiences. Others enjoy “learning vacations,” traveling for workshops, conferences, cooking schools, cultural programs, or music festivals.
Older travelers are increasingly tech savvy, and many still prefer to book their own trips through airline and hotel websites. They buy tickets online to avoid lines at museums and attractions, and they shop for the best fares, room rates, and last-minute deals. Their flexibility allows them to take advantage of off-season and shoulder season rates, longer stays, and mid-week airfares.
Financing Retirement Travel
Funding your retirement travel along with basic living expenses on a fixed income is a concern for many retirees. In this age of increased longevity, costly health care, and declining availability of pensions, many retirees find that their savings and investments are not adequate.
If you are still in the workforce, it’s important to prepare for retirement – take full advantage of savings options including catch-up contributions to IRA and 401(k)s. Travel expenses will need to be funded with those savings in retirement. Retirement planning advisers also suggest paying off as much debt as possible to create breathing room in your retirement budget.
Although it makes sense to travel early in retirement when health and mobility are still on your side, pulling too much money from savings early in retirement can cause budgeting issues down the line. The risk is taking withdrawals in a falling market during those early years will make it difficult to recover.
Running out of finances in retirement can cause retirees to wonder how they will be able to comfortably support themselves. Even while using money saving techniques, it can still be a challenge to fund an active retirement in today’s economy. Many people imagined they could rely on their 401(K) savings and their investment portfolio to finance retirement long enough to delay claiming Social Security and maximize benefits. However, rising costs of living are making it difficult to reach financial security with this plan. Fortunately Finance of America Reverse, LLC (FAR) has proven retirement funding solutions that may work for you. If you have home equity then reverse mortgage funding may be an ideal solution to supplement your retirement income.
If you are one of the tens of millions of baby boomers who don’t feel financially prepared there may be a real solution for you. A reverse mortgage puts your hard-earned equity to work so you can maintain or elevate your lifestyle during retirement. Contact a FAR representative today to learn more about the benefits of reverse mortgages and how they may help you secure long-term financial freedom and fund your retirement adventures.
This article is intended for general informational and educational purposes only, and should not be construed as financial or tax advice. For more information about whether a reverse mortgage may be right for you, you should consult an independent financial advisor. For tax advice, please consult a tax professional.
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