Rathandeep – Finance Coach for Women

Budgeting For Adventure: Financial Planning For Travelling The World After Retirement

You may have always wanted to travel across the world but earning a living and diverse responsibilities put a pause in your plans. Not to mention, the various expenses involved in travelling around the world that would have burnt an irreversible hole in your pocket. From the beautiful canals of Venice to the hot springs in Iceland, the wildlife safaris in Tanzania, and the Machu Picchu Citadel in the Andes Mountains of Peru, there’s a world yet to explore.

However, it’s probably challenging for young or even middle-aged professionals to take a vacation and spend lavishly on their travel adventures. People over 60 in India are expected to reach 323 million people by 2050, according to the Ministry of Tourism, Government of India. From data published in 2021, active agers account for 10.7% of holiday-related outbound travel from India.

Also, contrary to a trend of the past where the upper class were world travellers, the middle class is the largest spender. By 2030, India is expected to become the 4th largest spender on travel. That said, let’s explore how one can navigate their expenses and build a budget for travelling the world until they reach the age of retirement.

A financial Roadmap For Exploring The World After Retirement

While not everyone is a traveller or wishes to be, there are still many people who want to travel the world and experience its beauty. So, let’s go through this step-by-step guide on how to save up for that everlasting adventure:

  • Step 1: Plan the places you wish to travel

Create a list of dream destinations in India and abroad while jotting down the cost of flights, accommodation, food, and activities. Assess your preference of travel style as to whether you prefer luxury or backpacking adventures. 

Understanding your travel style will impact your budget accordingly. Check also whether your global travel will be long-term or short-term spread out over the years of your retirement.

  • Step 2: Estimate your travel expenses and budget

Work out your monthly spending to determine a baseline for budgeting in retirement. In this list, also factor in your expected pension income, rental income from properties, if at all, and other related factors. 

Make sure to allocate a specific portion of your retirement savings towards your travelling agenda. You could consider creating a separate investment account for easy access.

  • Step 3: Learn ways to make your travel reasonably cost-effective

Not every travel is going to hurt your savings, which means there are travel packages that are easy on your pockets. So, visit travel websites and apps to identify affordable deals on flights and accommodation. If you have already built extensive savings for travelling then you can reconsider your luxury and travel lifestyle accordingly. Look for off-season travel if it suits you. 

Explore guest houses, homestays, and hostels for budget-friendly lodgings. You could skip expensive tourist restaurants and try the popular street foods and affordable meals. Utilise public transport and travel passes for buses, subways, and trains if you want to cut down on local travel expenses. Also, invest in a travel insurance plan to protect yourself from trip cancellations and unexpected medical emergencies. 

These 3 steps above offer practical tips for you to start saving today. This is so that travelling across the world after retirement will prove a true adventure for you and your family.
Remember that there is always a way to save money for your dreams. If you require expert financial consultation to make your travel dreams after retirement come true, reach out to me to know more.

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