Throughout their working life, people fantasize about all the things they will do when they’re retired. The limitations that come with the commitment of work means you can’t always do everything you want to do. One of these things is traveling. While you can take short vacations throughout your life, you only have a set number of breaks from work. That means travel is restricted, and trips are packed with activities and rushing around.
When you start retirement, you have the freedom to travel to the places you always dreamed of. Your trips can be longer and more relaxed without the pressure of returning to work. That said, travel does cost money, and so paying for your trips requires some strategy. Over the course of this article, you will discover some tips for funding travel when you’re retired.
The best way to fund your travels when you retire is with money you’ve saved specifically for that purpose. Planning and identifying goals before retiring will allow you to begin saving money ahead of time. Open a savings account and budget to deposit money into the account regularly. The earlier you open the account, the more interest you can build up over the years as well. Seeing the number increase will help motivate you and bring excitement for futures travels. The best part is, you will have the money for trips and won’t have to pay it back.
Another great option if you own a home is equity release. Equity release allows you to release funds that are tied up in your home for you to use for travel. These funds are tax-free and will not put you into any debt. The money is paid back through the sale of your home when you go into a long-term care facility or pass away. It’s a great option as it doesn’t require you to move or downsize, and you still have access to your money. Before going this route, you can get equity release advice to identify how much money you’re entitled to.
If you’re aren’t attached to your family home, you can always look to downsize. Many still live in the house they raised their children in, likely with more space and bedrooms than are necessary. However, you may find that by selling your home and moving into a smaller property, you can free up a lot of money that you can then use to fund your travels during retirement. Many people are happy in their homes, so this may not be a route you want to take, but it can definitely boost your financial situation.
Being strategic and selective when it concerns choosing your reward cards and credit cards, as some allow you to accumulate a lot of points over the years. By choosing credit cards that give you travel reward points or other travel schemes, you can receive tons of freebies. These could be free flights, hotels, or tickets for shows and other activities. Save up your points and avoid spending them before you retire, so you have a vast bank to play with.