How to Budget for Travel in Retirement

travel in retirement

A lot of people anticipate that their retirement years will be a great time to travel. With more freedom and less time constraints, retirees can spend their days seeing the places they have always wanted to see. On the other hand, it can be hard to see the world on a fixed income. Luckily, jet-setting during your golden years is very possible if you take steps before retirement to budget appropriately for it.

First, you’ll need to be able to answer this question: What are your travel goals?

A budget for one yearly vacation is going to be very different from a budget for extended, more frequent travel to many different areas of the world. This is why it is crucial to determine what your travel goals are. Doing so will help you to plan accordingly. Make a list of places you want to see and get an estimate for how much it will cost to travel to each place.

In planning your retirement travel goals, you’ll need to make sure you don’t leave out any important travel costs. Remember to research costs for:

  • Flight tickets
  • Car rentals
  • Train tickets
  • Taxis/buses/subway fare
  • Dining
  • Tipping
  • Lodging
  • Sightseeing (guided tours, etc)
  • Travel gear
  • Souvenirs/other purchases

It’s a good idea to talk to other retirees who also have the “traveling bug” to see what their recommendations are or if they know of any good travel deals.

After you know your travel goals and approximate costs, you can figure this into your retirement plan. Before retirement, this may mean setting aside some of your savings into a travel fund with the goal of reaching a certain specified amount by the time you retire. Typically, it is considered safe to spend 4% or less of your total retirement savings per year without having to worry about running out of money. This 4% should also take into account everyday living expenses like taxes, food, health care and insurance. After retirement, you may continue to receive some kind of monthly income from Social Security, property you own and rent or investment proceeds. Make sure this income is calculated into your budget.

Look over the list of places you want to visit and put them in a list in order of priority. Next, create a timeline for your travels. This will not only give you concrete things to look forward to, but will help you figure out how much money you will be putting towards travel and when. This can give you a better idea of how travel will fit into your yearly budget. Maybe you will skip traveling a few years in a row to go on a dream trip. You may find your budget in retirement changes year to year depending on your travel plans. Be aware of the impact travel will have on your budget and plan accordingly. Maybe this will mean moving into a smaller house, eliminating a second vehicle, or even just spending less money eating out or on other unnecessary “luxury” activities.

During retirement, it is important to make every dollar count. Thankfully, with less time constraints, it is easier for retirees to stretch a dollar. Scheduling a trip during the off season is a great way to lower your overall cost. Take the time to watch airline deals online with sites like Expedia and Fly.com. Flexibility with when you travel (which will be possible in retirement) will allow you to take trips when they are most cost-effective. The longer you stay in one hotel, the more likely it is that you can negotiate a lower lodging rate. Combining long trips into one big trip can help you save on airfare.


Remember to always look for any senior travel discounts and do not be afraid to take advantage of every single one!


As with any kind of budget, you’re never going to be able to perfectly calculate exactly how much everything will be ahead of time. This is why one of the most important aspects of travel budgeting is leaving yourself a buffer. Spur-of-the-moment excursions, taxis, tips for staff and meals can sometimes exceed your planned allowance. A buffer will cover these extra expenses so you aren’t caught unprepared. Going with this rule, it is a good idea to get travel insurance. While it will make your trip slightly more expensive, it can save you big later if your travels are disrupted or a health issue forces you to cancel your trip.

Traveling can be a rewarding opportunity to have meaningful experiences in your golden years. If you are still preparing for retirement, now is the ideal time to assess where you are in achieving your retirement goals. Don’t let poor budgeting hold you back from living your retirement dreams!

6 Tips for Finding a Job After Retirement

job after retirement

After retirement, many retirees find they still want to stay active and continue earning a paycheck. Additionally, more and more retirees are finding that their retirement income just doesn’t cut it. But finding a full or part-time position later in life can be difficult. The good news is today’s job market has a ton of opportunities for flexible work options perfect for retirees. Here are six helpful tips to finding a job in retirement:

 

  1. Use Your Connections

This is one of the best ways to find the kind of position you are looking for. Reach out to friends and former employers or colleagues. Think about people you know who could put a good word in for you at an organization you admire. A glowing recommendation could help you get considered for a job opening. Your friends, family, and former co-workers may know of an immediate opening or be able to point you in the direction of other opportunities.

 

  1. Downplay Your Age

You should never lie during the hiring process, but that doesn’t mean you have to make your age obvious for potential employers. Don’t list graduation dates on your resume or refer to work experience or events from several decades ago. Keep the focus on more recent accomplishments and experiences from the past 15 years. You have a lifetime of skills at your disposal. Emphasize the skills most applicable to the job you are applying for instead of focusing on the length of your work history.

 

  1. Emphasize Your Adaptability

In retirement, you will see a lot of lifestyle changes—which means your employment needs will change as well. As a retiree, you may be able to work part-time instead of full-time. Maybe it would be possible for you to work less conventional hours. You also may not need the same types of benefits as younger workers. These are all big selling points to potential employers looking for flexibility in a new hire.

 

  1. Get Comfortable With Technology

Jobs are increasingly becoming more digital and technology-based. It’s no big secret that there is a perception that older employees don’t understand technology. Don’t let potential employers pigeon hole you with that stereotype! Show off your skills with technology in your application. Be sure to know how to check e-mail, use word processing programs, and make a point to mention this in your resume or interview. If a potential employer can see you have technology skills, your application will not appear weak compared to younger candidates.

 

  1. Volunteer

It’s often easier to get a volunteer position than a paid position. Organizations are always looking for enthusiastic volunteers to help with events or work overflow. By volunteering, you can get your foot in the door at an organization that may have job openings available down the line. If you can prove to an organization that you are a hardworking and dedicated volunteer, you will be at the top of their mind when it comes time to hire for paid positions.

 

  1. Search Job Boards

AARP has job boards with full-time, part-time, seasonal, and flexible jobs specifically for retirees.  You can also check out http://www.seniorjobbank.org, http://www.Retirementjobs.com and http://www.Retiredbrains.com for more job search resources. http://www.Coolworks.com specializes in connecting people with seasonal employment and http://www.FlexJobs.com helps people find remote jobs so you can work from anywhere on your own schedule.

 

As a retiree, you can bring so many valuable skills and lived experiences to a work place. Use these tips to find the perfect job opportunity to carry you through your retirement years!

Budgeting After Retirement: A How-to Guide

budget jar

As millions of Americans who were born in the Baby Boomer era reach retirement age, many of them are surprised to discover that retiring isn’t as stress-free as they imagined. For Baby Boomers who are trying to retire but are finding it difficult, there are some easy ways to get a handle on your retirement budget so that you can once again enjoy your golden years.

Although there are many things that will affect your retirement income (taxes, inflation, investments, part time income), there is one factor that you have total control over. How much money you spend, especially early in your retirement, is something that you can easily control. One of the biggest mistakes made by retirees is spending too much money very early in their retirement. This can happen due to the excitement of finally being retired – a “let’s celebrate” attitude that goes on for too long. Excessive spending can also continue beyond the early part of retirement, becoming chronic, which will eventually deplete all of your retirement funds while you’ve still got a lot of years of living left to do.

The smartest move for all retirees regarding their finances, is to set up and stick to a budget. Your retirement budget may look different from your budget during your working years if you are bringing in less money, but the payoff is in the fact that you no longer have to go to work every day!

In order to create a spending budget for yourself, you’ll need to know exactly how much retirement income you’ll receive each month. Add to this any money that you make from a part time job and any dividends you receive from investments. Combine these with any income your spouse (if applicable) is expected to earn monthly. Make sure that the numbers you are working with after taxes. After you have a good handle on how much money will be coming in each month, you’ll need to do some calculating.

How to Calculate Your Monthly Expenditures

  • Start with all non-negotiable expenses. These include your house payment or rent, utility bills, any car payments/car insurance premiums, food and clothing, and the cost of health care. Health care includes the cost of any medications you take every month, co-pays for regular doctor’s visits, and of course the cost of your health insurance*.*A note about health insurance: Do your research on the cost of health insurance after you retire. Your cost may be higher if your employer had been paying for part of the expense. Many retirees forget this fact, and this causes major problems with their post-retirement budget.Medicare: Many people wrongly assume that Medicare is free. While Medicare A is free, it only covers hospitalization. The rest of the benefits you’ll receive via Medicare aren’t free, and you will pay premiums just like you did for previous health care plans. Recent estimates show that, overall, Medicare will pay for approximately 60% of a retiree’s medical costs. The rest will come from your pocket.
  • Take a look at your ‘other’ expenses. After you’ve added up all of the non-negotiable expenditures, then you’ve got to take into account all other expenses you’ll encounter. These include the cost of leisure activities (going to the movies, eating out, vacations) gifts and luxuries (cell phones, cable, gym memberships). Basically, what we’re talking about here is the “fun stuff.”At this point, you’ll need to take into consideration what type of lifestyle will make you happy during retirement. If you will require more leisure activities than your budget allows for, you’ll have to start thinking about supplementing your retirement income with a part-time job. On the other hand, if you are willing to give up certain things that you previously enjoyed (such as a cell phone or an extensive cable tv plan), you’ll be able to cut your budget and spend more time relaxing instead of taking on a part-time job.

It can be difficult to create a budget for yourself, and it is also something that people often avoid doing because they’re afraid of what the reality may be. However, it is in your best interest to create a retirement budget as soon as you possibly can, so that you don’t run into significant financial problems during a time in your life that’s supposed to be your chance to finally kick back a little.

Need help creating a retirement budget? Let us know here, and we’ll happily consult with you FREE of charge.

 

Image credit: TaxCredits