Retiring is one of the life events that most of us excitedly looking forward to. It is a moment at which we can let go of the rudder for a moment, stop straining against the wind and simply go with the flow. Of course, not all of us are content with the easy life after finishing with work, but some of us will take retirement in both hands, and make the absolute most out of it.
For you, this might mean travel takes priority now. Travel is an enriching experience whatever stage of life you are in, but it can gain a special significance as you transition into your sunset years, as quality time matters more. For this reason, it is only right that you want to do it properly. If you’re planning for a long retirement travelling the world, what do you need to get together in order to do so?
Budget for Travel
Travel, unavoidably, costs money. This makes your budget your most important tool for figuring out an equitable way to make long-term travel work for you. Just as you might figure out your retirement living costs in order to ascertain the health of your pension pot, you should start this process by figuring out your rough daily costs when travelling – and the rough costs of travelling to your dream locations. If South-East Asia calls to you, you may be able to save money traveling by train instead of plane, for example. While you’re considering your travel budget, it may be worth you thinking about currency for your time while you are away. Understanding where to get the best UK pound to PKR exchange rate is just as important as knowing where to shop for suitcases. Your trip is going to go without a hitch when you have every avenue covered.
If you are travelling across multiple countries, you will need to be aware of currency changes and exchange rates, otherwise you could lose out on money by not paying attention. You should work all this out in relation to the money you have, and figure out what is workable in your plan and what isn’t.
Retirement Savings
Most of your travel will likely be funded by the savings you’ve amassed in the run-up to retirement. However, it is crucial that you ensure there’s enough left over for life when you return from your travels. Annuity payments from your pension could cover your post-travel day-to-day, but you should crunch the numbers carefully.
Where travel and visa costs are concerned, you may need to make a lot of significant payments up-front – which is where equity release can become a practical solution. Equity release products release part of your home’s value as a lump sum or annuity, enabling you to invest in the short term and repay the debt through the sale of your home. Equity release payments can cover the short-term costs without crippling you for the duration of your travel; just make sure to pay the interest each month, and stay on top of the principal. You must research this carefully and get various professional opinions!
Alternative Income Sources
If you are able, you absolutely should consider making some additional income before, or even during, your travel. Digital nomadism has become a popular method of travel amongst younger contracted workers and freelancers, and could be a viable path for you, dependent on your skills. Earning as you travel is a great way to keep your trip going, even beyond its slated end date.
Main Image – Photo by Vlada Karpovich: https://www.pexels.com/photo/view-of-the-clouds-from-an-airplane-window-7902922/