Better budget tips for travelling in retirement
More time to travel is one of the biggest benefits of reaching retirement age.
In fact, two-thirds of all older Australians intend to go on a holiday within the next 12 months. And for those with an income over $100,000 to spend, that number shoots up to 88 percent, according to COTA’s 2023 State of the Older Nation report.
Cheap retirement travel tips
For many retired Australians, a trip to Europe is the number one bucket list destination followed quickly by seeing more of our own country.
The Australian Seniors 2022 Travel Trends Report says older Australians don’t mind budget destinations, but they weren’t afraid to splash out either.
When you’re on a fixed income, is there a way to enjoy more holiday for your dollar? The answer is a resounding yes.
Look for free events
Take the time to really research your destinations. You might be pleasantly surprised to discover how many fascinating things you can do that are absolutely free! Look for local festivals, markets and events happening around the time of your travel for a real budget-friendly experience
If you’re looking for a place to start, Which Museum is a great resource that lists more than 180 museums around Australia that you can visit at no charge.
Don’t forget the big galleries and museums such as London’s National Gallery and the Getty Museum in Los Angeles – both of them have free entry!
Budget-friendly self-catering
Dining out can be very expensive when travelling – particularly hotel and restaurant meals. Staying in apartments or using Airbnb accommodation that have their own kitchens is a great way to watch your travel food budget.
Visiting local markets is a budget-friendly experience that will also have you feeling like a local.
Accommodation alternatives save money
While a luxury hotel vacation is very nice, there are some great ways to not lose sleep over accommodation costs. Home stays, farm stays, and Airbnb accommodation can often be more affordable.
Caravan parks which have shared kitchenettes or barbecue facilities are a great way to get to know your fellow travellers. In outback communities, some towns have designated RV-friendly stops that you stay overnight at no charge.
Time to travel
When you’re at your leisure, why not take advantage of last-minute travel deals? There are websites including LastMinute.com.au and Travelonline.com that list substantially discounted holidays to popular destinations. The only catch is being ready to travel at relatively short notice.
Also, consider travel clubs that put together discounted packages. Some may even offer group travel options which mean you can meet with other likeminded vacationers and share the adventure together.
Travel outside of peak season
Being retired means the ability to dodge school holidays and other expensive travel times. Off-peak travel can save you up to half on the price of accommodation, airfares and attractions. Better still, by going in the low season, you will avoid crowds at your destination’s most popular attractions which means you get to see more of the sights.
Keep an eye on the currency exchange
When the Australian dollar is low against the British Pound Stirling or the US Dollar, it doesn’t mean the holiday is over.
In fact, there is a whole world of desirable holiday destinations where the Aussie dollar gets you further, including Argentina, Vietnam, South Africa, and Sri Lanka.
Can I get a discount?
Age comes with privilege – particularly when travelling around Australia. Don’t be afraid to ask for seniors’ discounts at accommodation, attractions, restaurants, and transportation services.
Did you know that Queensland pension card holders are entitled to free Queensland Rail long-distance fares that cover more than 60 destinations including Cairns, Longreach, Charleville, and Rockhampton.
Even overseas, public transport is a convenient and economical way to do sightseeing – especially if you travel outside of popular commuter periods.
Choose better banking
Have a chat to your bank before you travel to ensure that any overseas spending isn’t mistakenly identified as fraudulent, and while you’re there have a chat about the options for secure and cost-effective ways to enjoy your spending money.
Some banks already offer fee-free overseas ATM withdrawals on debit cards. Others may offer a special prepaid travel card that locks in the exchange rate as well as featuring no transaction fees.
How much money do you need to travel in retirement?
Before working out how much you can spend on your holidays, the first step is to know how much you can spend in retirement. According to many financial experts, you can withdraw up to five percent of your retirement funds each year without running out of money.
But what does that mean for your travel budget?
Plan your holiday budget
Meeting your day-to-day expenses should be priority, so factor between five to 20 percent of your income toward your holiday fund. While you’re saving for a bucket list trip, don’t forget to add some day trips and weekends away as well.
Taking the time to plan your itinerary and your budget will ensure you can enjoy your holiday without worrying about running out of money.
