Retirement Planning & Services

Nearly 70% of Americans dream of traveling once they retire, says the 18th Annual Transamerica Retirement Survey. However, travel expenses are one of the potential obstacles that stand in the way of most retirees. According to the international travel agency network Virtuoso, an average American retiree spends more than $11,000 a year on travel. But a report by the Pension Rights Center reveals that more than 26 million senior Americans had a yearly income of less than $24,224 in 2018. This leaves little or no wiggle room for traveling the world unless retirees’ financial strategy is backed by budgeting and financial goal-setting both before and after retirement.

Here’s what to consider what when planning for travel in retirement:

Everyday spending

If you plan to travel in retirement, the primary focus should always be your everyday expenses in retirement. Retirement planning services can be of big help to you in analyzing your normal living expenditure and how you should prepare yourself in managing it. After determining the overall budget you require to live comfortably, add to it the cost of traveling.

Review retirement income and expenditure

As a rule of thumb, the more you save, the more flexibility you have in planning retirement travel. You may be able to save more if you carefully review retirement income and expenditure and answer a few questions such as:

• Is the trip too costly? If yes, can you plan it at a lower budget?
• Does delaying travel make sense to save more?
• Can you afford to travel with your current retirement income?
• How many trips can you afford a year?

Budget your travel

Experts say that determining your annual cash flow and how much you can spend on travel helps shape your travel budget. Based on that, you can decide whether you want a major trip each year or multiple smaller trips in a year. When you determine a travel budget, make sure you include airfare, hotel accommodation, local transport, food, medicare, and other factors depending on the country or city you plan to visit. Retirement planning solutions in Chicago can also assist you in outlining a travel budget for you.

Final note

Once you have determined your daily expenses in retirement and a travel budget suiting your needs, the next big step is saving and ensuring smooth cash flow from all the possible sources, which retirement planning services will help you to discover.

Author’s bio: The author is a blogger and this article is about how to plan your travel post-retirement.