Twenty years from now you will be more disappointed by the things you didn’t do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.
Mark Twain
You don’t want to regret not seeing the world. Retirement is the ideal time to travel to all the places that you’ve always wanted to see. With very few responsibilities, it’s much easier to pack your bags and see the sights.
However, if “Explore. Dream. Discover.” the world is your goal for retirement, you will need to do some planning first.
It is possible to travel the world in retirement without going broke. Lynne and Tim Martin are a great example of this. After selling their house in California and most of their possessions in 2011, the two made travel after retirement a reality and have been exploring the world. In addition to Social Security and payments from a small pension, the couple lives on income from their investments, which equals about $6,000 a month.
They have not yet had to tap into their nest egg because they make strategic spending decisions which bring their total costs to no more than what they were spending when they were permanently rooted in California. To keep costs down, the couple will alternate between more pricey cities and less expensive ones, and take advantage of repositioning voyages where cruise lines offer great rates when they move their ships seasonally.
Have you calculated your retirement income and expenses? A retirement calculator can be a great way to guage whether or not you will be able to travel. The NewRetirement retirement calculator makes it easy to try out different scenarios or input one time big expenses — ideal for travel planning.
If you are passionate about travel and would like to spend your retirement abroad, you should take this into consideration while planning for retirement. Look ahead at the cost of traveling to and living in your top destinations to estimate how much you will need each month. If your retirement income plan does not currently account for long-term or extensive travel, you may need to reevaluate your goals.
However, there are ways to make almost any travel goal a reality. Travel can be a budget lifestyle or a major luxury splurge. Here are 9 specific tips for making the dream of traveling the world in retirement a reality.
Though you will need to make sure that you will have the retirement income to maintain this nomadic lifestyle, money will not be your only concern. Here are some things to consider before you start traveling:
Your Home – If you plan on traveling throughout your retirement without a home base, you will need to decide what to do with your primary residence. You might choose to rent your home for additional passive income, or sell your house and invest the funds.
Possessions – You will not have space to bring much with you on your travels. You and your spouse will need to decide what you can keep and what you need to get rid of. This would also be the time to distribute any valuable possessions to the family.
Health Insurance – Most U.S. health insurance plans will not follow you out of the country. Using cash, getting international or in-country insurance, or utilizing national health care networks are all options for meeting your health care needs. You will need to decide which of these works best based on your individual circumstances.
In retirement you have time and flexibility on your side to make travel possible.
The real trick is to have a solid understanding of your overall retirement plan and a firm grasp on your lifestyle goals.
Whether you want to sell all of your possessions and spend your entire retirement traveling the world or you just want to make traveling a larger part of your retirement lifestyle, it’s important to plan ahead before you set sail. Taking travel expenses into account in retirement planning and making arrangements for your health and home allows you to leave the country with peace of mind.
Use an online retirement calculator to assess and tune your plan.
