Forgotten Expenses in Retirement--Travel

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cresive
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Forgotten Expenses in Retirement--Travel

Post by cresive »

Hello All,
I just read an article discussing how very few people actually budget for travel in their retirement planning--despite the fact that travel is one of the highest priorities people cite as a want in retirement. I was wondering how much your travel/vacation budget balloons after you retire. I would love to hear from people who increased their travel budget after retirement. Do you have any tips on how to finance extensive travel? Tips on cutting costs without ruining the experience?

Thanks,
Ben

PS. I just threw together an average budget based on my leisure travel during my working years. My game plan is to try to do a European trip plus a domestic trip/year. I came up with a general set-aside of about $7,500 to easily cover my expenses. Would that translate into retirement, or do things change much more than during working years?
frugalmama
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Re: Forgotten Expenses in Retirement--Travel

Post by frugalmama »

I'm not retired yet. However, I look at how much a trip cost me 20 years ago to Europe and how much a similar trip would cost me now and there is a big difference. My plan is that 50% of my SWR in the early years will be used on travel as we plan to travel several times a month and already take month long vacations (and are well aware how much they cost us, LOL!). Since travel really is my biggest love in life, I don't want to run the risk of not having enough to do it. In addition, I don't want to be like a friend of mine whose husband recently retired and has to think about the cost of going to visit her new grand child. I want to be in my grandkids' lives as much as possible even if they don't live very close.
Garfieldthecat
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Re: Forgotten Expenses in Retirement--Travel

Post by Garfieldthecat »

I'm not retired yet either (12-15 years to go). But in my planning, I have added $20,000 / year for travel in my retirement budget.

That would give us several extra nice vacations a year, and since we will be retired, why shouldn't we have fun? Also, if the economy goes downhill and things really go bad, it's an easy expense to cut back and reduce expenses.

As we get older and travel less, I also figure it can go to savings for potential medical costs or long term care or similar issues.
wilked
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Re: Forgotten Expenses in Retirement--Travel

Post by wilked »

I think I read somewhere that $25K / year is a good rule of thumb to use for first 10 years of retirement
rich126
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Re: Forgotten Expenses in Retirement--Travel

Post by rich126 »

wilked wrote: Wed Nov 13, 2019 10:11 am I think I read somewhere that $25K / year is a good rule of thumb to use for first 10 years of retirement
Obviously that isn't for the average person.
Gill
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Re: Forgotten Expenses in Retirement--Travel

Post by Gill »

cresive wrote: Wed Nov 13, 2019 9:37 am My game plan is to try to do a European trip plus a domestic trip/year. I came up with a general set-aside of about $7,500 to easily cover my expenses. Would that translate into retirement, or do things change much more than during working years?
It's really hard to see how you can take two major trips for $7,500. Airfare to Europe alone could absorb a third of that.
Gill
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WoodSpinner
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Re: Forgotten Expenses in Retirement--Travel

Post by WoodSpinner »

OP,

Retired Jan2018....

Travel is our 3rd largest budget category (Taxes — Roth Conversions and Health Care are the top 2).

Travel is also a top priority for our retirement and is strongly related to our happiness.

We typically budget for 1 BIG trip every 2 years and lots of small trips in between (usually in our RV).

60-70 are our GO-GO years and our budget ($25,000 in real dollars) is 3 times what we expect to spend from 70-90. Might have to readjust, but planning 20-30 years out is rarely accurate.

Key thoughts:
1. Make sure you have a firm agreement on your retirement priorities.
2. Budget for them as best you can. Adjust as conditions and desires change.
3. Experiment — decide what works best for you.

For instance at some point we will take advantage of last minute deals and late booking. Typically we are planners and booked our BIG trip for 2021 about a year ahead of time! Should be interesting to spot a great deal, buy it, pack and be on our way a day or 2 later.

My brother is a frequent traveler and often heads out during the off times (e.g. St. Petersburg, Russia in December). He never has checked baggage an can live out of his carry-on for a month enjoyably. Would drive my wife and I nuts!

Lot’s of travel hacks out there — you just need to figure out what works for you.

WoodSpinner
Last edited by WoodSpinner on Wed Nov 13, 2019 10:30 am, edited 2 times in total.
flyingaway
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Re: Forgotten Expenses in Retirement--Travel

Post by flyingaway »

If someone did not budget for travel in retirement, this person either does not like to travel or cannot afford to travel in retirement.

We are budgeting $20K~$30K per year for leisure and entertainment in retirement, be it travel, playing at casinos, or other things.
GmanJeff
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Re: Forgotten Expenses in Retirement--Travel

Post by GmanJeff »

It really does depend on what you anticipate wanting to do. I approached this by pricing out some likely trips, the way I would want to do them, and applying those costs as my budget estimates. Rather obviously, a week on a Carnival cruise ship in the Caribbean represents a very different cost than three weeks in Asian waters on a ship from Regent Seven Seas, for example. Business Class international air requires a different budget than Economy Class. If you stay at a Motel 6 instead of the Four Seasons, your costs will reflect those choices, etc. Make up a list of the destinations you have in mind, how many trips you'd take annually on average, and roughly price out what each would cost if you stay in the types of hotels you'd want, fly the fare class you want, etc., and you'll have a reasonable basis for establishing an annual travel budget.
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snackdog
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Re: Forgotten Expenses in Retirement--Travel

Post by snackdog »

The good news is travel is usually discretionary, so if you didn't budget for it you don't have to spend anything on it. If you didn't budget enough, you just have to dial back your travel to what you can afford (e.g. less days, less distance, seedier hotels, re-positioning cruises, Southwest Airlines, tent camping, etc). With AirBNB, you may be able to rent out your residence, say during a local sporting event, and defray your vacation cost.
delamer
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Re: Forgotten Expenses in Retirement--Travel

Post by delamer »

When my husband was working, 2 weeks was the outside of time he could take off for one trip.

With his retirement coming up soon, my hope is that we’ll be able to take a major trip each year of 2+ weeks (like Asia, Australia, African safari) while we are relatively young.

These trips will be much more expensive than most of those we’ve taken in the past.

I don’t have a budget to share but as mentioned earlier, you really need to consider what type of travel you want to do.
Last edited by delamer on Wed Nov 13, 2019 1:03 pm, edited 1 time in total.
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Cyclesafe
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Re: Forgotten Expenses in Retirement--Travel

Post by Cyclesafe »

Avoid guided tours and cruises.

Flying somewhere, renting a car, and driving from place to place is pretty economical. You can stay at B&B's, eat locally, and interact with the people you meet. Far more fun than being herded around with people from home.

DW and I try to take three one month long trips a year. But rather than rent a car, we have lately been taking public transportation from the arriving airport to the beginning of self-guided walks where local services transport our luggage between accommodations. You can start with companies like Sherpa Expeditions and Utracks, but in the UK at least you can book everything online yourself - including luggage transfer. Also using the UK as an example, two people can stay in upscale accommodations, eat premium food, and have reliable luggage transfer for $200-300 per day.

For guided trips, expect at least double this. High end small-ship cruises are $2,000+ per day same basis. So, stay self-guided until you just can't hack it any more.
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adamthesmythe
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Re: Forgotten Expenses in Retirement--Travel

Post by adamthesmythe »

I didn't budget for anything, ever. I don't plan to start.

Travel spending is inessential.

My approach in retirement is to use what is left over after essential spending for travel. I have minimized essential spending by owning a house with HOA maintenance in a low-cost of living area. There is plenty left over.
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Bogle7
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Actual Travel Costs (for us)

Post by Bogle7 »

2017 - Portugal, 21 days, 5 cities, flew coach - $8956
2018 - España, 22 days, 5 cities, flew business - $14869
2019 - Italia, Slovenija, Österreich, 22 days, 5 cities, flew business using $/points - $12727
2020 - planned Italia, France, 23 days, 5 cities, business tickets using $/points - $14000 as lodging is more expensive
Last edited by Bogle7 on Wed Nov 13, 2019 10:05 pm, edited 1 time in total.
wilked
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Re: Actual Travel Costs (for us)

Post by wilked »

Bogle7 wrote: Wed Nov 13, 2019 11:37 am 2017 - Portugal, 21 days, 5 cities, flew coach - $8956
2018 - España, 22 days, 5 cities, flew business - $14869
2019 - Italia, Slovenija, Österreich, 22 days, 5 cities, flew business using $/points - $12727
Curious... the other 23 weeks of the year is no travel at all? Or just below a $$ threshold for big picture accounting?
randomguy
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Re: Forgotten Expenses in Retirement--Travel

Post by randomguy »

Gill wrote: Wed Nov 13, 2019 10:20 am
cresive wrote: Wed Nov 13, 2019 9:37 am My game plan is to try to do a European trip plus a domestic trip/year. I came up with a general set-aside of about $7,500 to easily cover my expenses. Would that translate into retirement, or do things change much more than during working years?
It's really hard to see how you can take two major trips for $7,500. Airfare to Europe alone could absorb a third of that.
Gill
Most people don't fly bussiness class and are not spending 2500 on tickets. You can get to most european locations for 600-700 bucks if you live on the east coast. Obviously all these numbers are personal. Some people want to be eating 150 dollar meals. Others are happy with 15. You need to know who you are and price it out accordingly. You should have taken some vacations in the past 10 years and have a rough idea what they cost you.
curmudgeon
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Re: Forgotten Expenses in Retirement--Travel

Post by curmudgeon »

When we retired, I put some amount of travel into our baseline budget (trips to see the grandkids, some regional stuff). Then I had a large block of discretionary budget for travel beyond that. And each year that ACA holds together, I move our unspent medical insurance budget over to next years travel budget. We aren't into really exotic or expensive locations, but we do sometimes bring along family members which pushes the cost up somewhat.

Even though we have an ample budget for our desires, we still naturally try to contain costs. Some of the things we do:

1) fly midweek (for international), or whatever the off-days are for our route. Being flexible on travel days tends to save significantly.

2) We will normally schedule a rest day on arrival after a long flight rather than pay for business class. On 10+ hour flights, I usually find decent business class seats cost $200/hr more than economy. We spend a fraction of that on an extra day (without planned activities) at our destination since we don't have to count vacation days (unless we are running up against the Schengen limits on time in Europe without a visa).

3) We will often use VRBO/Airbnb to rent an apartment at our destination. This depends on location; sometimes hotel services are nice to have.

On the other hand, some things we will go ahead an pay extra for:

1) staying in a central, lively area of a city rather than out in the suburbs. Spending a lot of time packed into commuter trains doesn't fit our vacation model, and just wandering around in the evening can be a big part of what we enjoy.

2) if we do a cruise, we've found we prefer the ships a notch above the mass-market ones.

3) non-stop flights if possible (we are on west coast), especially on the return to avoid having to go through customs/security at an intermediate airport.

4) If a car will be useful, we just rent one. We also don't twist our travel routing into a pretzel just to avoid the international car rental drop charges in Europe, but we do pay attention to any smart choices we can make on this.
StealthRabbit
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Re: Forgotten Expenses in Retirement--Travel

Post by StealthRabbit »

We do not budget specifically for travel because we are gone most the time, as we have been for many yrs working international assignments. (now...Early Retirement, pre age 50, and finally approaching FRA in a few yrs.)

$30k / yr is OK but a light year for us, and we travel very cheap. It is just part of our annual 'spend'.

In the future your travel budget will probably transfer to HC needs.

Everyone travels with different expectations and objectives. We seldom travel as a tourist, prefer to be engaged with the lives / cultures of other countries. We stay in Hospitality Guest homes for last 35 yrs. Free to $20 / night WW (including a lot of invited meals). People / building relationships is the objective, not the inexpensive stays. https://wikitravel.org/en/Hospitality_exchange
Servas.org started in 1947 to bring international people back together after the destruction of WWII. These international stays were quite formative to our kids. (and ourselves)

We also house, pet, farm sit for others and do volunteer gigs internationally (Free Room and board)
Prefer to 'live' / stay in a region for a few months. Have done this in 6 countries and nearby on a Canadian Island.

RTW (Round-the-world) for one yr in 2016 cost us ~$40k, mostly for rental cars and camper vans. Next time we will buy used vehicles and keep them in strategic regions. It is a good idea to be gone from USA every Election Year!

USA travel I keep a spreadsheet and compare travel modes / vs objectives:
a.) -- 52mpg free fuel car + guest homes
b.) -- 20 mpg Motorhome (Rialta) Usually use free campsites / fairgrounds / parks in small western USA towns / stay at farms.
c.) -- 25 mpg minivan (with sleeping space and outdoor shower)
d.) -- Fly / drive (rent cars) + Guest Homes (goes great with our SWA Companion Pass... 140 FREE flights last yr for my companion)

other... walking / biking / backpack / train / tour / friends

This year we did Fly/ Drive and focused on State Fairs ~ $30k for 200 days travel (mostly rental cars and airfare)

We keep income properties in various USA regions with extra car and living space for us = Tax deductible travel between locations and 50% food for 'business trips' to maintain properties.

Lots of ways to skin the cat.
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Watty
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Re: Forgotten Expenses in Retirement--Travel

Post by Watty »

cresive wrote: Wed Nov 13, 2019 9:37 am I was wondering how much your travel/vacation budget balloons after you retire.
I started traveling more about 7 years before I actually retired. I had gotten to the point where I would have been financially OK if I had to retire early even though I would have had a bit less than I was planning on.

That is also about the time my son had gone off to college so we were only paying for two people instead of three. Once my son was in college that also meant that we could travel in the spring and fall which is often much less expensive.

Our travel budget went up some when I retired but it was not all that dramatic because the offsetting saving.

We are mostly budget travelers so typically we look to see where there are the best deals and choose where to go based on that. This part makes a huge difference. Now that we are retired we are a lot more flexible so we can take advantage of deals that we could not have done while working.

For example last year there was a deal right after Thanksgiving for round trip tickets to Australia from the west coast for around $550 when that was normally well over $1000. I checked with my wife and booked those tickets the within a day. If I was still working and had to schedule vacation time then the airfare deal would have been long gone by the time I could have gotten that vacation approved.

I am on a email list that will alert me to good deals from my city and I have found several that way.

We can also save a some by flying on the least expensive days which are usually Tuesday or Wednesday. When I was working we had to try to plan the flights around weekends to get the extra days on the trip.

Rental cars can also be much less expensive when you are renting for multiples of 7 ways since you get the weekly rate.

It also helps that we do not really like it so that we do not do a lot of expensive dining or drinking when we are traveling.

Since time is no longer a constraint going for longer trips now which reduces the cost per day so we get more "bang for our buck" when we travel. For the trip to Australia we went for five weeks and a lot of that time was spend outside of the large cities where hotels are a lot less expensive especially during the shoulder season. Outside the big cites I don't think that we paid more than $100 a night for nice mid range hotels.

The exchange rate was also really good so all in the five week Australia trip probably only cost a little bit more than some two week trips that we had taken to Europe when I was working.
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cresive
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Re: Forgotten Expenses in Retirement--Travel

Post by cresive »

OP here!

Thanks to everyone. This turned into a popular topic. I have actually learned what I wanted to know. My $7,500/year budget works well now as I am working and can't take that much time to travel. It looks like I need to up that budget to approx $25,000/year to account for the extra travels during my go-go years. As I read the responses, it looks like I can reduce the budget item in my slow-go and really reduce it in my no-go years. Perhaps I can do a move from travel to health care as I enter these stages.

Either way, upping my estimates for travel is a good idea and I am thankful for the responses. I hope I can afford $25K--$25,000 is a big chunk out of a retirement budget!!

Ben
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Re: Forgotten Expenses in Retirement--Travel

Post by MikeG62 »

cresive wrote: Wed Nov 13, 2019 3:09 pm OP here!

Thanks to everyone. This turned into a popular topic. I have actually learned what I wanted to know. My $7,500/year budget works well now as I am working and can't take that much time to travel. It looks like I need to up that budget to approx $25,000/year to account for the extra travels during my go-go years. As I read the responses, it looks like I can reduce the budget item in my slow-go and really reduce it in my no-go years. Perhaps I can do a move from travel to health care as I enter these stages.

Either way, upping my estimates for travel is a good idea and I am thankful for the responses. I hope I can afford $25K--$25,000 is a big chunk out of a retirement budget!!

Ben
Your retirement budget should obviously cover all of your estimates expenses, travel being one of them (and a very large one for us). Also, health care is another big one which ramps up once you retire (or does for many retirees). [FWIW, our health care spending in 2018 totaled $26,000. This year we are trending closer to $20,000, thankfully. This is for two people in their mid-50's.]

You have to figure what works for you. We take 6-9 roughly one week trips per year. It's the single biggest line item in our budget by a large margin. Part of our retirement planning was making sure we accumulate sufficient assets to support this lifestyle. I did not retire until we had enough.

Also, on a separate note, you need a line item in the budget for unplanned or unanticipated expenses. This year for us that totaled over $29,000 (with a septic field replacement being the single largest item). Our unplanned or unanticipated expenses in 2018 totaled $14,000. A large portion of these costs are unanticipated R&M on the house.
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Sheepdog
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Re: Forgotten Expenses in Retirement--Travel

Post by Sheepdog »

Well, I didn't change or forget as we were traveling some already before retirement in the 12 years before (three Caribbean cruises, twice to Great Britain, Russia, Greece, Turkey, Central America, Alaska, upper Canadian provinces.) And we continued, although we discontinued big travel when I reached 82. (Because of not traveling so much, we are spending now close to what we spent in 1999 and 2000.) !!
When I reached retirement, my beginning in-retirement budget was virtually the same as the recent years before, except for income taxes as they were less and the plan included that.
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Re: Forgotten Expenses in Retirement--Travel

Post by WhiteMaxima »

I will travel around around when I was young. Don't wait till retirement. When I was young I could travel more economically: stay in hostel, fly economy class, ride bike in the city, jumping from one train to another quick and more tolerate to street food without worry about heath problems. When I retire, I will be more flex on schedule for cheap ticket, rent a place for long term for cheap rate. I would budget $10000 for retirement (2x$600=$1200 round US to anywhere cheap fare, 3 month rent in one place for $1000 a month $3000, the rest to spread in three months of 100 years (5800/100=$58 dollars/day food and utility, use public transport, no car hire.
victw
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Re: Forgotten Expenses in Retirement--Travel

Post by victw »

Since we have been renters in HCOL area. We are going to downsize to storage unit. Put everything in storage and start nomadic travel around the world. The expense to have a place plus extensive travel would mean saving a lot more money->working more years. We will move to lower cost of living area - probably about the time medicare kicks in. If we don't get with bad SOR then we should still have extra for maintaining a small home/condo and continue travels with a home base.

If we decide we don't like the nomadic lifestyle. We will establish home base and I will likely go back to work so that I can continue to travel.

Expect to pull the plug within the next 2 years.
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Re: Forgotten Expenses in Retirement--Travel

Post by GerryL »

A year or so into retirement and after one international trip, I set a generous budget for annual travel. The next year, new opportunities came up and I shot past the target by about 50%. But that is okay because my other expenses are quite low, and I don't even spend my full allotted budget. So I went with the increase the following year.

With two international trips a year, plus a couple of domestic trips, travel accounts now for about 1/3 of my spending. My goal is to scratch the travel itch until I decide I don't want to -- or can't do it anymore. Now that RMDs/QCDs have started, charitable giving accounts for just under 1/3 of my spending.

As with any spending, you have to prioritize. If travel is important to you, well, adjust your budget.
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Re: Forgotten Expenses in Retirement--Travel

Post by Sandi_k »

We're assuming $20k per year for travel.

And we're assuming 3% of the house value for repairs and maintenance.
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Re: Forgotten Expenses in Retirement--Travel

Post by Small Law Survivor »

Cyclesafe wrote: Wed Nov 13, 2019 11:25 am . . . local services transport our luggage between accommodations
Hmmm ... never heard of this before. Just assumed you toss your luggage in the back of a cab and drag it to and from yourself. Do you have a lot of luggage, or am I missing some aspect of this service. I'm actually interested .... :)
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Re: Forgotten Expenses in Retirement--Travel

Post by VictoriaF »

You can save travel expenses by getting credit card bonuses. In retirement, you'll have the time to understand and play the game.

My other source of savings is taking DAY flights to Europe via London. I fly in United Economy, leaving at 8 AM and arriving at 8 PM, spend a night at Heathrow, and the next day fly to wherever I want to go in Europe. My Economy flight is 30k United miles, which is easy to get with the credit card game. My hotel bonuses pay for airport hotels. A flight in Economy is much easier to find than in Business, and sleeping even in the cheapest airport hotel is more comfortable than in an airplane.

In Europe, I travel using public transport: trains and buses, with an occasional flight. In retirement, you have time for slow travel and it's more enjoyable.

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Bogle7
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Re: Actual Travel Costs (for us)

Post by Bogle7 »

wilked wrote: Wed Nov 13, 2019 11:40 amCurious... the other 49 weeks of the year is no travel at all? Or just below a $$ threshold for big picture accounting?
We make one trip a year.
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Cyclesafe
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Re: Forgotten Expenses in Retirement--Travel

Post by Cyclesafe »

Small Law Survivor wrote: Wed Nov 13, 2019 6:46 pm
Cyclesafe wrote: Wed Nov 13, 2019 11:25 am . . . local services transport our luggage between accommodations
Hmmm ... never heard of this before. Just assumed you toss your luggage in the back of a cab and drag it to and from yourself. Do you have a lot of luggage, or am I missing some aspect of this service. I'm actually interested .... :)
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Re: Forgotten Expenses in Retirement--Travel

Post by JDCarpenter »

We retired 7/31/17, at 57 and 56. As planned since our twenties, we retired to travel, as our two jobs didn't play well together for vacation trips. (So major YMMV)

We don't really budget much, so these are retrospective, hard numbers.

In the last 5 months of 2017, we did a month and a half of domestic driving travel and two months by bus and planes in Peru. In 2018, we were home for 11 weeks (more international than domestic). In 2019, we have pulled back a bit, and will be home between 4-5 months. 2020 already has 4 months international lined up...

2018 travel costs were close to 50% more than our average total post-tax spending in our last 4 years pre-retirement....

2017, not so much, due to only 5 months.

2019, travel will easily be our biggest expense, but it looks like it will probably slide in at less than our total average post-tax spending pre-retirement. (we expect/hope travel to be our biggest expense until we are in our 70s...)

You can spend as much as you like/want/are_able. BUT--domestic driving trips with stays at Quality Inns or the like can give you amazing bang for the buck. The USA (and Canada) compares favorably with international destinations (excluding diving and pre-18th century cultural stuff), and at an attractive price--particularly given the cut-rate pricing of U.S. national park annual passes..
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Re: Forgotten Expenses in Retirement--Travel

Post by AlohaJoe »

cresive wrote: Wed Nov 13, 2019 9:37 amI just read an article discussing how very few people actually budget for travel in their retirement planning--despite the fact that travel is one of the highest priorities people cite as a want in retirement.
I like travel but I think the reality is that, for a whole lot of people, travel is something they've sort of been brainwashed into thinking they're supposed to like but they actually don't. Kinda like cooking shows or home renovation shows, where the number of people who like watching those shows is vastly higher than the number of people who truly enjoy doing it themselves.

In general I believe in "revealed preferences". Don't believe what people tell you, believe what they actually do. They may say they like travel but then they actually spend their money on redecorating their house and buying a super-fancy BBQ for football Sundays with friends and neighbors. Which is a perfectly fine choice, just don't kid yourself what your priorities are.
I was wondering how much your travel/vacation budget balloons after you retire. I would love to hear from people who increased their travel budget after retirement.
Our budget is about 50/50 between travel and all other non-travel expenses.
Do you have any tips on how to finance extensive travel? Tips on cutting costs without ruining the experience?
You finance it by "building the life you want and then saving for it". One of the biggest ways to cut costs is to find ways to not go out to eat 3 meals a day for weeks on end. As a retiree, you also the advantage of being able to go in off-peak season. But that's not always great because sometimes the whole point of a destination is the peak season. Do you really want to go to Iceland in the winter, just because it is cheaper?
I just threw together an average budget based on my leisure travel during my working years. My game plan is to try to do a European trip plus a domestic trip/year. I came up with a general set-aside of about $7,500 to easily cover my expenses. Would that translate into retirement, or do things change much more than during working years?
The costs for some of our vacations from the last 2 or 3 years (all economy class flights; we don't live in the US):
  • US (just Arizona, really): $13,000
  • Iceland: $11,000
  • Australia: $8,000
  • Myanmar: $5,000
  • Philippines: $3,500
  • Taiwan: $3,000
  • Hong Kong: $2,500
  • Australia (again): $2,200
  • Malaysia: $1,500
  • Quy Nhon, Vietnam: $900
  • Huahin, Thailand: $900
  • Hoi An, Vietnam: $380
As you can see, it is impossible to provide any kind of "average" estimates. Holidays cost whatever you want to spend and what you like doing. Someone who enjoys road trips and camping isn't going to spend the same as someone who like scuba diving in tropical waters. Saying "a domestic trip" is almost entirely meaningless. Does that trip mean you're flying to a city, staying in a 4-star hotel, getting seats at NBA and NFL games, and going to Michelin-star restaurants? Or does it mean bicycling across the country and trying to go to as many Waffle Houses as you can?

People's hobbies and tastes continue to change as they get older. The only constant I've really seen is that as we get older, our tolerance for budget travel & accommodations declines. Not saying you need to go full business class & luxury hotel. But you probably start thinking things like, "I'd rather spend an extra $30 a night so there's only a 3-minute walk to the cool museums in downtown Helsinki instead of having to walk 15-minutes".
InMyDreams
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Joined: Tue Feb 28, 2017 11:35 am

Re: Forgotten Expenses in Retirement--Travel

Post by InMyDreams »

WoodSpinner wrote: Wed Nov 13, 2019 10:21 am 60-70 are our GO-GO years and our budget ($25,000 in real dollars) is 3 times what we expect to spend from 70-90. Might have to readjust, but planning 20-30 years out is rarely accurate.
My parents continued their travels well into their 80s - usually one distant foreign trip (e.g., Asia or Europe) and one Americas trip (e.g., Mexico in winter) per year, plus many local travels (camping, car travel, etc).

In their later years, they relied more often (tho not always) on a tour company instead of putting together their own itinerary and travel arrangements. So I don't think their costs went down as they aged.

Personally - $25k/yr? Oh, my I'd have to work several more years! definitely not worth it.

I have a neighbor who FIRE'd early - she told me that in 2018 she had a goal to spend only $25 for the year. Everything. And she traveled - not much outside the US (I know she went to Mexico, tho). A lot depends on the type of travel that you do.
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