How Much Did You Budget for Travel in Retirement?

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PGR
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How Much Did You Budget for Travel in Retirement?

Post by PGR »

As retirement is about 1 year away - am updating my living expenses budget (in today's dollars).

Have an entry for Travel/Vacation. We put in $24,000/year in 2021 dollars. This was intended to be an 'average' and is a bit of a guestimate.

Would be for 2 people and cover anything from a 10d European river cruise to a 6 week rental in the Rockies or a hiking trip to S. America... Maybe cover some seat upgrades here and there on flights too.

Sound OK?

What did/are you budgeting for travel and what kinds of plans?
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JoeRetire
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Re: How Much Did You Budget for Travel in Retirement?

Post by JoeRetire »

Haven't budgeted anything specific.

We had planned some travel last year but...
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Starfish
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Re: How Much Did You Budget for Travel in Retirement?

Post by Starfish »

The thing is in retirement you have time. And if you have time traveling is MUCH cheaper. The internet is full of great offers which don't fit people with jobs and limited vacation but are great for retirees.
There is not much discussion on this forum about these offers because people talk about first class travel and 5 star resorts and cruises. But traveling can be very cheap with some flexibility.
Marseille07
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Re: How Much Did You Budget for Travel in Retirement?

Post by Marseille07 »

I'm budgeting 5K per tip, 6 times a year for 30K. Probably enough unless you fly business / first class every time.
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Re: How Much Did You Budget for Travel in Retirement?

Post by AlohaJoe »

Why does it matter how much I have budgeted?

Do you have the same portfolio I do? Do you have the same travel tastes I do? Do you like to stay at the same hotels I do? Do we take the same number and length of vacations?

We spend far more than $24,000 and that's without any seat upgrades. We spent over $10,000 on a vacation that was only in the state of Arizona.

I don't understand what you can possibly do with that information, though.
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Re: How Much Did You Budget for Travel in Retirement?

Post by Hebell »

And we are the other extreme. My husband and I take backpacks, walking sticks, and use the local bus systems and trains. When my bum knee acts up, we may rent a car. Our biggest upgrade has been getting rooms with our own bathroom instead of the communal one down the hall. We travel very little different now than we did in our twenties. For experiences, we hire people off TripAdvisor. We've done all the fancy restaurants we ever need to do, so that doesn't even factor into our budget anymore. We've traveled that way all over the world. The only difference is being older we are a little more cautious about our safety so we don't go to incredibly remote areas anymore, or those with pockets of abject poverty. We also can't do the long long hikes, nor can we tolerate high altitude areas well anymore

We no longer want to visit any European capitals. Dog sledding to see northern lights, canoeing in remote areas with a lodge nearby, going between small towns by bus or rail to see local crafts, abandoned castles, illuminated manuscripts, or to taste the wines is now more our style. There's only so many Renaissance high alters one needs to experience...
Last edited by Hebell on Sat May 01, 2021 5:31 pm, edited 1 time in total.
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Re: How Much Did You Budget for Travel in Retirement?

Post by jebmke »

AlohaJoe wrote: Sat May 01, 2021 5:12 pm I don't understand what you can possibly do with that information, though.
Agree. We spend very little because we traveled extensively before retirement and don’t have the same appetite for travel that many do.
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Toons
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Re: How Much Did You Budget for Travel in Retirement?

Post by Toons »

No budget
We just go
When we want to

:happy
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Re: How Much Did You Budget for Travel in Retirement?

Post by jebmke »

Certainly better than going when you don’t want to.
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SrGrumpy
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Re: How Much Did You Budget for Travel in Retirement?

Post by SrGrumpy »

Just go, put it on the card. Worry about the rest later. Time is running out.
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Re: How Much Did You Budget for Travel in Retirement?

Post by jebmke »

One thing I will note. While we are way under our original assumption (13+ years ago) about travel spend, our total spending, on average, is quite close to what I expected. Significant year to year variation but the average is closer than I expected.
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Re: How Much Did You Budget for Travel in Retirement?

Post by radiowave »

There's a difference between being a tourist and a traveler. A tourist just purchases a tour and everything is done for them. A traveler basically does everything on their own, uses local transit, local homes/B&Bs, local restaurants, and enjoys the beauty of each place and people on its own merit and not from a tour bus window following the mass of other tourists.

Just wanted to say that as it directly relates to the OP question. Traveling is (sometime a lot) lower cost than touring.
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frugalecon
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Re: How Much Did You Budget for Travel in Retirement?

Post by frugalecon »

I will give a different perspective from some other folks. What you are proposing is exactly what my spouse and I have budgeted for travel in retirement. It is more than we currently spend, but I anticipate wanting to travel more when we have more time, but also being able to take advantage of “shoulder season” and other deals, so spending won’t go crazy. Overall, I budget $10-11k/month in retirement, and I will be willing to allocate about 20% of that for travel. The trips we want to take will need to fit within that amount.
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Re: How Much Did You Budget for Travel in Retirement?

Post by jebmke »

radiowave wrote: Sat May 01, 2021 5:53 pm A tourist just purchases a tour and everything is done for them. A traveler basically does everything on their own, uses local transit, local homes/B&Bs, local restaurants, and enjoys the beauty of each place and people on its own merit and not from a tour bus window following the mass of other tourists.
Actually, there is quite a bit in between. It isn't that black and white.
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Re: How Much Did You Budget for Travel in Retirement?

Post by tibbitts »

PGR wrote: Sat May 01, 2021 4:02 pm As retirement is about 1 year away - am updating my living expenses budget (in today's dollars).

Have an entry for Travel/Vacation. We put in $24,000/year in 2021 dollars. This was intended to be an 'average' and is a bit of a guestimate.

Would be for 2 people and cover anything from a 10d European river cruise to a 6 week rental in the Rockies or a hiking trip to S. America... Maybe cover some seat upgrades here and there on flights too.

Sound OK?

What did/are you budgeting for travel and what kinds of plans?
Well I retired in December 2019 and my first year travel expenses were about $24 vs. your $24k, thanks to the pandemic. So far in 2021: $0. I still have itineraries that are being cancelled; one was just cancelled this week.

But if not for the pandemic, are you saying you're thinking of spending $24k for one 10-day cruise? If so I'd say you should at least double if not triple your budget, since I'd think you'd be planning at least 30 days of travel per year.
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Re: How Much Did You Budget for Travel in Retirement?

Post by radiowave »

jebmke wrote: Sat May 01, 2021 5:55 pm
radiowave wrote: Sat May 01, 2021 5:53 pm A tourist just purchases a tour and everything is done for them. A traveler basically does everything on their own, uses local transit, local homes/B&Bs, local restaurants, and enjoys the beauty of each place and people on its own merit and not from a tour bus window following the mass of other tourists.
Actually, there is quite a bit in between. It isn't that black and white.
if you mean buy a local tour when you get to where you're going, yeah agree with that. We did an Italy trip a few years ago that we did our own arrangements. Got to Florence after taking the bullet train from Rome and saw there was a Tuscany wine tour that left from the main train station, $90 each for my wife and I. What a great day, stopped in Sienna and Pizza and included a tour of a local winery with a fabulous lunch and plenty of wine of course. I can only imagine what an all expense paid Tuscan wine tour would be coming from the US.
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Marseille07
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Re: How Much Did You Budget for Travel in Retirement?

Post by Marseille07 »

What in the world are people talking about. The OP is simply doing their budgeting exercise pre-retirement so they can estimate 25x (or whatever) with travel budget included.

It's not at all the case they must go somewhere or they have to spend 24K no matter what. Not at all.
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Re: How Much Did You Budget for Travel in Retirement?

Post by humblecoder »

AlohaJoe wrote: Sat May 01, 2021 5:12 pm Why does it matter how much I have budgeted?

Do you have the same portfolio I do? Do you have the same travel tastes I do? Do you like to stay at the same hotels I do? Do we take the same number and length of vacations?

We spend far more than $24,000 and that's without any seat upgrades. We spent over $10,000 on a vacation that was only in the state of Arizona.

I don't understand what you can possibly do with that information, though.
I think the OP's question is reasonable. I understand your point is that there is a certain amount of individualization that goes into travel. However, getting a feel for what others do might provide some food for thought and a sanity check. He/she not only asked about budget but also for what type of plans. I think that goes along with what you are saying, since it does provide context.

However, if you don't want to provide the information, that is certainly your right. :sharebeer
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Re: How Much Did You Budget for Travel in Retirement?

Post by marielake »

I put away $500/month. Spent nothing last year and have no trips planned in the near future. After it is safe to travel, I will do so with funds withdrawn from my retirement accounts. I have no set budget and can be flexible.
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Re: How Much Did You Budget for Travel in Retirement?

Post by curmudgeon »

Much depends on you specifically, and your travel style. How much time would you like to spend away from home, and in what type of environment? Might you foot the bill for kids or other family members to travel with you sometimes (or would you count that in a different category)?

I think your number is a reasonable ballpark for the type of travel you describe. I had a number similar to that in our original retirement budgeting. I also keep a similar number in the budget for pre-medicare insurance costs. Each year that ACA holds together and we stay under the subsidy gross income limit, I add that subsidy amount to next year's travel budget. We haven't actually spent that much, even pre-covid, but it's kind of a reminder that it's ok to spend it if we want to.

If we are unconstrained by other responsibilities or limitations, we'll tend to do about two 4-week trips a year, plus various shorter US trips to visit family and friends. With flexible schedule, we often travel in shoulder season, and fly on the lower demand days. So far we've generally chosen to skip business class on flights, and just add an extra "down day" on arrival after a long flight. We do try to use nonstop flights and more comfortable planes where possible, even if it costs a bit more.
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Re: How Much Did You Budget for Travel in Retirement?

Post by Dottie57 »

I don’t have the travel bug. Home is my happiness. So nada is budgeted. If friends can talk me into a trip I will go. But nothing big planned or desired really.
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Re: How Much Did You Budget for Travel in Retirement?

Post by DSBH »

In our 4th year of retirement, and our last trip was to Morocco in Feb 2020. Before pandemic we travelled on average about 100 days and spent around 24k per year - mix of overseas and domestic travel, cruises and land + flights, nothing extravagant.
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Re: How Much Did You Budget for Travel in Retirement?

Post by MindBogler »

Toons wrote: Sat May 01, 2021 5:29 pm No budget
We just go
When we want to

:happy
Don't ever change, Toons.

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HomerJ
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Re: How Much Did You Budget for Travel in Retirement?

Post by HomerJ »

PGR wrote: Sat May 01, 2021 4:02 pm As retirement is about 1 year away - am updating my living expenses budget (in today's dollars).

Have an entry for Travel/Vacation. We put in $24,000/year in 2021 dollars. This was intended to be an 'average' and is a bit of a guestimate.

Would be for 2 people and cover anything from a 10d European river cruise to a 6 week rental in the Rockies or a hiking trip to S. America... Maybe cover some seat upgrades here and there on flights too.

Sound OK?

What did/are you budgeting for travel and what kinds of plans?
Yep, $24,000 a year for us as well.

This covers one "trip of a lifetime" ( :oops: ) every year - like a Alaska cruise or a European river cruise - something in the $10k-$12k range for two people.

Then the other half is used for a bunch of smaller trips - mostly visiting family, but maybe one $3000 Caribbean cruise with the kids or an inclusive resort kind of thing...
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Re: How Much Did You Budget for Travel in Retirement?

Post by climber2020 »

PGR wrote: Sat May 01, 2021 4:02 pm What did/are you budgeting for travel and what kinds of plans?
I'm still working, but I'm projecting about 1/4 to 1/3 of our retirement budget to be for travel. Our housing expenses are intentionally very low to allow for this.

During good stock market years, I'll do the expensive trips across the ocean. During bad stock market years, I'll putz around the mountains and other miscellaneous nature stuff in the contiguous US. I've done plenty of both already; many times I actually prefer the lower budget mountain climbing trips, so either way it will be a good time.
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Re: How Much Did You Budget for Travel in Retirement?

Post by MathWizard »

We will have about $22K/yr discretionary after normal living expenses, health ins, taxes,
house maintenance and car replacement.

Some of this will be used for travel by car, and other hobbies, so I expect perhaps $12K/yr.
average. I also have $30K put aside for extra travel early in retirement.

We've done 2 week European vacations on $8K to 12K, and 10 day domestic air travel + rental car
food and hotel is in the $3K to 5K range. About $300/day plus airfare plus money for admissions to
sites.
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Re: How Much Did You Budget for Travel in Retirement?

Post by HomerJ »

Starfish wrote: Sat May 01, 2021 4:06 pm The thing is in retirement you have time. And if you have time traveling is MUCH cheaper. The internet is full of great offers which don't fit people with jobs and limited vacation but are great for retirees.
There is not much discussion on this forum about these offers because people talk about first class travel and 5 star resorts and cruises. But traveling can be very cheap with some flexibility.
This is true.
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Re: How Much Did You Budget for Travel in Retirement?

Post by HomerJ »

AlohaJoe wrote: Sat May 01, 2021 5:12 pm Why does it matter how much I have budgeted?

Do you have the same portfolio I do? Do you have the same travel tastes I do? Do you like to stay at the same hotels I do? Do we take the same number and length of vacations?

We spend far more than $24,000 and that's without any seat upgrades. We spent over $10,000 on a vacation that was only in the state of Arizona.

I don't understand what you can possibly do with that information, though.
Good point. We're all different with different levels of wealth.

We budget $24,000 a year because that's what we can afford and still retire soon. But it gives us one really nice trip a year, and plenty left over for little stuff, so it seems like a good amount.

But sure, if I had double the money, I'd certainly spend more on travel. Travel is discretionary. It's a great place to spend your extra money. Because you can always cut back a bit in tough times, and it doesn't hurt too much to cut back there.

If you buy too much house, you can't cut back on that.
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Re: How Much Did You Budget for Travel in Retirement?

Post by HomerJ »

tibbitts wrote: Sat May 01, 2021 6:04 pmare you saying you're thinking of spending $24k for one 10-day cruise?
Oh, I didn't catch that... Yeah that seems a bit high... Especially for a river cruise. Those costs are contained, and all excursions are included.

$12k got us an extremely nice 11 day trip from Prague to Budapest (with 3 days in Prague to start, and 2 days in Budapest at the end).
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Re: How Much Did You Budget for Travel in Retirement?

Post by 1moreyr »

There is a difference of $35K per year between my normal expenses and a 3% withdrawal rate.
this is my bucket for discretionary spending. if I dont have to fix the house or need a new car, I will travel with it.
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Re: How Much Did You Budget for Travel in Retirement?

Post by SrGrumpy »

HomerJ wrote: Sat May 01, 2021 7:37 pm
tibbitts wrote: Sat May 01, 2021 6:04 pmare you saying you're thinking of spending $24k for one 10-day cruise?
Oh, I didn't catch that... Yeah that seems a bit high... Especially for a river cruise. Those costs are contained, and all excursions are included.

$12k got us an extremely nice 11 day trip from Prague to Budapest (with 3 days in Prague to start, and 2 days in Budapest at the end).
How can you spend $1,000+ a day travelling between two cities that are six hours apart? Or does this include airfare?
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Re: How Much Did You Budget for Travel in Retirement?

Post by quantAndHold »

1moreyr wrote: Sat May 01, 2021 7:50 pm There is a difference of $35K per year between my normal expenses and a 3% withdrawal rate.
this is my bucket for discretionary spending. if I dont have to fix the house or need a new car, I will travel with it.
Exactly. We spend about $40k/year on discretionary stuff. Some years it’s all travel. Some years it isn’t. In 2020, it was a very nice bathroom.
Yes, I’m really that pedantic.
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Re: How Much Did You Budget for Travel in Retirement?

Post by GerryL »

Initially, I mentally gave myself an allowance of $10k for travel. (Solo travel is not just 1/2 of coupled travel.) But as I got further into retirement and saw that I wasn't spending up to my overall target, I upped my travel allowance by 50%. It will go up again as things open up and I treat myself to more comfort.

I know how much I can afford to spend in a year, so I can make adjustments. I figure the day will come when I no longer can or longer want to do much travelling, so I might as well take advantage of my healthy years and healthy portfolio. The pandemic showed us how much of a moving target a travel allowance really is.
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Re: How Much Did You Budget for Travel in Retirement?

Post by beandeveloper »

How much is "needed" is so dependent on what one wants to do and how they want to do it.

We set aside just under $10K / yr for travel. Of course in 2020 we didn't spend any of it. But in the 4 years of retirement prior to that we didn't spend all of what we budgeted. First, we're not extravagant travelers. Second, it turns out I'm much less enthusiastic about travel in retirement than I thought we'd be. My wife, on the other hand, has taken a couple of solo trips as a result of my desire to hang out more at home and loves it. But since she is a frugal traveler - we're still spending considerably under our annual budget - even though her solo trips have taken her to international destinations.
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Re: How Much Did You Budget for Travel in Retirement?

Post by HomerJ »

SrGrumpy wrote: Sat May 01, 2021 8:03 pm
HomerJ wrote: Sat May 01, 2021 7:37 pm
tibbitts wrote: Sat May 01, 2021 6:04 pmare you saying you're thinking of spending $24k for one 10-day cruise?
Oh, I didn't catch that... Yeah that seems a bit high... Especially for a river cruise. Those costs are contained, and all excursions are included.

$12k got us an extremely nice 11 day trip from Prague to Budapest (with 3 days in Prague to start, and 2 days in Budapest at the end).
How can you spend $1,000+ a day travelling between two cities that are six hours apart? Or does this include airfare?
It includes airfare, and they're not six hours apart floating down the Danube (technically had to take a bus from Prague to get to the river - Floated through Germany and Austria before getting to Hungary and Budapest). Airfare, food, drink, excursions in the 4 towns in between, and the excursions (and hotels) in Prague and Budapest themselves cost around $12k (maybe $11k?) for two.

Felt pretty luxurious to me.
Last edited by HomerJ on Sun May 02, 2021 12:32 am, edited 1 time in total.
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Re: How Much Did You Budget for Travel in Retirement?

Post by Take5Man »

age almost 64, spouse 64. recently laid off: travel budget for out of state for 2021 and beyond. Zero. 20 years active duty Navy 70's thru 90's. I'm done traveling internationally unless something spectacular happens.
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Re: How Much Did You Budget for Travel in Retirement?

Post by Cruise »

As a budgeting exercise, I entered $48K as our yearly travel allotment. If the Pandemic ever allows us the freedom to travel again, I’m sure we will exceed this figure.

Last trip was Feb 2020, and the international F flights were all award seats. Spent about $7–$8K on 10 days of hotel rooms on that trip, plus F&B and guide. Our first post-pandemic trip is this coming week, a quick getaway which will cost $4K in hotel room.

We can’t take it with us, so in addition to charitable gifting, we do our best to support service industry workers. 😀
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Re: How Much Did You Budget for Travel in Retirement?

Post by politely »

I'm also in the camp of not having a specific budget for travel. We do plan to travel a lot after retirement, but we haven't planned specific trips or stays yet - the costs could vary significantly. We are relying on a SWR to cover all of our expenses, including travel. I guess if we had to break down the budget for travel, we'd have to break down the expenses for all the other categories. Since we're still a few years out from retirement, that seems both premature and too much work. The only category of expenses that I have sat down and calculated are the mandatory expenses, like taxes, housing, utilities, insurance, food, etc. I think we can be flexible about the rest, and we can be flexible about travel plans to fit our budget at the given time. After all, travel is a luxury, not a necessity.
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Re: How Much Did You Budget for Travel in Retirement?

Post by Nivek »

I have $30K planned but hope to up that more as time goes on. I’m 1.5 years to 4.5 years away from retirement so hope to up that portion of my plan as investments grow. Over the past 5 years prior to COVID we’ve gone to Europe twice, to Alaska, Hawaii and Canada plus domestic travels. I’m not a car guy or boat guy so don’t have expensive hobbies but have discovered that we love to travel and experience new places. We’ve been taking our 3 school/college aged kids so that adds up. However, I do plan to flex that budget based upon my portfolios growth that year.
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Re: How Much Did You Budget for Travel in Retirement?

Post by SQRT »

We always planned that travel would be a significant activity in our retirement. I recall the first “retirement budgets” made around 2004 included about $150,000 per year for travel. Retired in 2006 (age 56) and exceeded this budget for a number of years. Recently not so much (obviously). We often include close friends or family with us, and pay their cost.

Clearly there is a wide variation on how much travel can cost. Domestic vs international. Alone or with a group. 5 star hotels vs camping. Not sure what individuals can learn from the cost of other people’s travel? It’s pretty personal and dependant on available funds to a large extent.
Last edited by SQRT on Sun May 02, 2021 9:15 am, edited 1 time in total.
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Re: How Much Did You Budget for Travel in Retirement?

Post by basspond »

I would look at this as percentages and your X factor. If your portfolio is over 40X of your yearly expenses then travel could be up to 80% of your total budget. If expense/portfolio ratio is between 30-40, travel should be no more then 30%, if ratio is under 30, travel should not be more then 10%.
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Re: How Much Did You Budget for Travel in Retirement?

Post by MikeG62 »

AlohaJoe wrote: Sat May 01, 2021 5:12 pm Why does it matter how much I have budgeted?

Do you have the same portfolio I do? Do you have the same travel tastes I do? Do you like to stay at the same hotels I do? Do we take the same number and length of vacations?

We spend far more than $24,000 and that's without any seat upgrades. We spent over $10,000 on a vacation that was only in the state of Arizona.

I don't understand what you can possibly do with that information, though.
I think you are correct. It depends on what kind and amount of travel the OP wants to do. You can find hotels at $150 per night and resorts at $1,000 per night or more. Do you want to take two or eight trips per year (or something inbetween)? What do you like to do when you travel? Do you eat at the finest restaurants while vacationing or not so much?

We plan on traveling enough to sleep outside of our home for 45-60 nights per year. This would be between six and nine trips per year. We stay at top resorts and eat at fine restaurants. Our travel budget is around 25%-30% of our annual spend. Other people on this forum spend less on all of their annual spend than we spend on travel. Different strokes for different folks. We did not retire to sit at home all year.
Last edited by MikeG62 on Sun May 02, 2021 3:29 pm, edited 1 time in total.
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Re: How Much Did You Budget for Travel in Retirement?

Post by Naismith »

radiowave wrote: Sat May 01, 2021 6:13 pm
jebmke wrote: Sat May 01, 2021 5:55 pm
radiowave wrote: Sat May 01, 2021 5:53 pm A tourist just purchases a tour and everything is done for them. A traveler basically does everything on their own, uses local transit, local homes/B&Bs, local restaurants, and enjoys the beauty of each place and people on its own merit and not from a tour bus window following the mass of other tourists.
Actually, there is quite a bit in between. It isn't that black and white.
if you mean buy a local tour when you get to where you're going, yeah agree with that. We did an Italy trip a few years ago that we did our own arrangements..... I can only imagine what an all expense paid Tuscan wine tour would be coming from the US.
I really don't understand this snobbery. We are overwhelmingly independent travelers--we've lived in Indonesia, Brasil and Germany--but I can understand a variety of reasons why someone would opt for a tour rather than going alone.

I would not travel to mainland China or Egypt outside a tour (either a business group or a leisure tour). There are just so many risks.

Some tours have deals to get into an attraction at special times or a better rate. When we were cruising to Costa Rica, a tour offered by the cruiseline was actually cheaper than trying to replicate the experience myself, as well as the guarantee of not missing the ship.

Some tours have the best guides and content experts. Their lectures and commentary add greatly to the experience, and only lesser quality is available outside the tours.

Also, if I get to the point where I can't schlep my own luggage, I will consider tours if that allows me to keep seeing the world.

But to the original question, we only budgeted $12,000 a year based on our typical spending. That has been one 2-week international trip, one domestic adventure, and lots of brief jaunts. But not sure how the spiraling car rental rates and flights will affect this year.
Marseille07
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Re: How Much Did You Budget for Travel in Retirement?

Post by Marseille07 »

basspond wrote: Sun May 02, 2021 7:27 am I would look at this as percentages and your X factor. If your portfolio is over 40X of your yearly expenses then travel could be up to 80% of your total budget. If expense/portfolio ratio is between 30-40, travel should be no more then 30%, if ratio is under 30, travel should not be more then 10%.
Travel budget is part of your X factor, because it's your expected expense in retirement (unless you don't plan to travel any). We kind of have to ballpark how much it is, since the price varies wildly in terms of where you go, for how long, what kind of accommodation etc etc.
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Artful Dodger
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Re: How Much Did You Budget for Travel in Retirement?

Post by Artful Dodger »

I think we budgeted a similar amount, in the $24k range.

Lots of good suggestions above. With more time and flexibility you can definitely stretch your travel dollars.

I started back with Quicken last January 2020, and can also see what expenses go down during our travel. Wife’s hobby and art expenses, grocery, local eating our, home supplies, lower utilities, etc. They add up, and offset some of the travel expenses.
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Re: How Much Did You Budget for Travel in Retirement?

Post by flyingaway »

I think the total annual budget is also important to consider.
We have an estimated retirement spending of $100,000 per year, of which $20,000 is for travel and $20,000 is for entertainment. So, potentially, we could use $40,000 for travel annually.
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AerialWombat
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Re: How Much Did You Budget for Travel in Retirement?

Post by AerialWombat »

I’m budgeting about $10k-$12k a year for travel, by myself. That gets me one luxury cruise a year, and an annual trip to someplace nice around the Pacific Rim.
For entertainment purposes only.
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Re: How Much Did You Budget for Travel in Retirement?

Post by delamer »

If travel will be an important activity for you in retirement, then it’s a good idea to anticipate the types/frequency of travel that you want to do. And then set a budget.

The activities that you describe in your post have widely varying costs.

In our case, I plan for one major trip ($20,000) and a couple minor trips ($3,000 to $5,000) each year (post pandemic).
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. | | Alexandre Dumas, fils
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Re: How Much Did You Budget for Travel in Retirement?

Post by Wilderness Librarian »

Initially budgeted 20K/yr. (single & prefer to travel alone). Arrived at this figure as a balance point between what I might spend given open preferences and retiring early enough to do what I wanted. Haven't yet spent that much due to extensive & expensive house remodel - back on track financially right when Covid hit. Now planning to keep 2021 & 2022 at about 5K/yr and back up afterward. The 20K estimate included 1 adventure tour company trip (rafting; fly in camping/backpacking etc. impossible or too expensive to do alone); at least 1 week ski condo a foreign trip using miles plus what ever else I could squeeze in which would vary from year to year.
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Garco
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Re: How Much Did You Budget for Travel in Retirement?

Post by Garco »

We generally plan on just 2 major trips per year. One in summer to Maine. Costs include rental, travel, meals, etc. for 2-3 weeks. And one in the Fall to the West Coast for meetup with family, typically in the Fall-early-Winter. Combined costs $15-20K. We have deferred international trips for the past year, so no Christmas and New Year in Spain, France, Italy, etc.

We don't do "cruises." Too many bad or disappointing experiences by family and friends.
Last edited by Garco on Sun May 02, 2021 12:30 pm, edited 1 time in total.
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