We live our lives in different phases. From our youth to old age, we learn new things, have different experiences, make memories and move towards the next stage of our lives. This is the beauty of life; we are all constantly evolving. The roller coaster ride of life twists and turns unexpectedly, and without consideration.
But what if you’re hoping to plan for periods of international travel in your retirement? How can you make sure you have enough money to travel and live?
How to afford international travel in retirement
Retirement age varies from country to country but it is widely considered to be the age at which you stop working full-time to live out the elder years of your life without the stress and strain of employment. Therefore, it is suggested that you make adequate financial plans for this phase of your life while you can, especially if you’d like to travel more in your retirement.
Here are some very important factors that you need to consider when planning financially for travel in your retirement:
Manage any outstanding debts
Your post-retirement life is supposed to be simple and free of stress so the last thing you’ll want is the weight of unpaid loans sitting heavy on your shoulders.
If you’re planning your retirement, start the process of dealing with your unpaid debts now. It will be challenging and require some changes to the way you manage your money at the moment, but in the long term, you will reap the reward of being debt-free.
Start a travel fund
I know it sounds cliche, but starting a separate saving account for your planned expenditure on travel will help you manage your finances successfully once you finish work.
Alongside the more general planning, you do for your retirement you can allocate specific funds for the trips you’d like to take when you finish work, without impacting the funds you’ve set aside for general living and property maintenance costs.
Confirm what social security or pension contribution you’ll receive after you retire
Regardless of where in the world you live, you can contact your local authority to find out what financial contribution the state will provide when you are retired. It’s really important to understand what help you are entitled to as then you can work out how much money you’ll need to save in order to maintain the standard of living you are enjoying right now.
Create a budget based on your post-retirement income
Your post-retirement income is going to be different from what you are earning right now. Keep this in mind because this may mean you need to start saving from your retirement in advance.
Depending on your circumstances you may find that your expenditure decreases slightly when you stop working due to changes in lifestyle, however, it’s worth setting yourself a monthly budget to ensure that you don’t spend more than you can afford.
READ MORE PRACTICAL GUIDES FROM WANDERLUSTERS
Decide whether you want to relocate abroad in retirement
This is perhaps the most important thing that you need to figure out before you retire. A lot of people decide to stay where they are and live out the rest of their days close to the family and friends they have known for years. However, some retirees choose to relocate to a foreign destination that offers a cheaper cost of living or a more desirable climate. If you do relocate, check how this may affect your social security or pension contributions.
If you are retiring this year here are some popular 2020 retirement destinations to consider.
Make changes to your lifestyle
Life after your retirement is going to be a bit different from your current life, there’s no getting away from this. You’ll find yourself with a lot more time on your hands and could potentially find your relationship with your husband or wife alters slightly as you will spend a lot more time with each other. You need to prepare yourself emotionally for this change because it can affect people in different ways.
One of the best ways to do that is to plan your post-retirement activities and have some projects lined up to keep you busy. A period of international travel can be a great distraction from some of the less exciting elements of retirement!
You’ll have time, plan how to use it
Most of us spend our whole lives complaining about not having enough time to achieve what we want to. Work, family commitments, and household chores seem to take up any hours at which we’re not at work. This is not going to be an issue once you are retired.
Consider how you want to spend your retirement and begin making plans to ensure you achieve your new goals; perhaps you want to travel the world by house and pet sitting, or learn a new skill while travelling abroad? Whatever you decide to do you you’ll definitely have time enough on your hands when you leave full-time employment!
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