Budget for Travel

[Flyfish1]

I know this has been discussed before, maybe there was even a poll , but my lame attempts at searching for the thread came up empty. Perhaps it was a pre- Covid poll and the travel world is a bit different now.

I'm 9 months and 18 days away from retirement, assuming things go well with the home sale. Working and reworking my retirement budget. My question is : What do people budget for travel in retirement? Perhaps , I should say what do people budget for travel in the early years of retirement?

I realize there is a huge spread amongst people in terms of travel expenses. Just curious what the range might be. I am personally, planning for $50K in travel and may want to push that a bit higher. Again that would be in the early years of retirement.

Thanks in advance.

 

[Lagniappe]

I budgeted $30K per year when I retired in 2018.

I never spent anywhere near that amount. First I was using miles and points accumulated from my working years, then Covid hit and travel ground to a halt. This year I have been traveling since March, and won't be home till November, so making up for lost trips. I have had some wonderful experiences along the way, and will likely increase the budget next year.

 

[athena53]

I was at $21K/year in 2019, $8K or so in 2020 and 2021, $23K 2022 YTD with no major trips planned through the end of the year- maybe another $2,000.

My typical pattern is two "big" trips (this year it was Germany and Malta on my own and a little over 3 weeks on a small-group tour of E. Europe). That includes Business Class airfare on long-hauls. I don't travel with a partner or that could get expensive really fast although I"m diligent about working the loyalty programs. I have relatives in SC and do road trips to visit them a few times a year, and when I visit my son and his family in Des Moines I take the 2 older kids to a hotel for the night because for them it's a big treat. Next month I'm flying with them to Chicago for 2 nights- the 5-year old's first time.

So, I'm back to pre-COVID patterns and I'm SO happy about it!

 

[audreyh1]

This recent thread had a lot of people talking about their travel spending and budgeting.
https://www.early-retirement.org/forums/f28/what-percent-of-your-spending-is-recreation-115106.html

 

[11522914]

Wow, 50k, nice budget. We budget about 5k annually. Typically we get an additional 2 - 4k using credit card points.

 

[braumeister]

I have a category "Hobby and Travel". Over the past 15 years it has averaged 24% of my total spending.

 

[audreyh1]

Before retiring we set aside extra funds for the first few years of travel assuming that there would be a lot of pent up demand to satisfy. We did travel very heavily the first three years, then got a camping trailer and did more domestic independent travel and travel costs dropped dramatically. We ultimately splurged on a fancy diesel pusher motorhome, sold our house, and hit the road full time RVing for five years. This period covers the first 10 years of retirement.

 

[Flyfish1]

Before retiring we set aside extra funds for the first few years of travel assuming that there would be a lot of pent up demand to satisfy. We did travel very heavily the first three years, then got a camping trailer and did more domestic independent travel and travel costs dropped dramatically. We ultimately splurged on a fancy diesel pusher motorhome, sold our house, and hit the road full time RVing for five years.

Wow - very cool!

 

[brett]

We do not have a set budget. Pre covid it was typically 7-8 weeks in Europe and 8-9 weeks of snowbird travel in places like Thailand, Costa Rica/Panama, or Mexico.

During covid zilch. No travel.

This year...five weeks in Portugal this summer. 10 days planned in Puerto Vallarta AI in November. 8-9 weeks of snowbird travel in Thailand this coming winter. And perhaps a month or so in Morocco during either the spring or the fall.

What will we spend? Not quite sure. Air is up for some destinations. Portugal air this summer was the same as it was two years ago. Direct flight to Mexico is up about 15 percent over what we have paid in the past. Not a big issue.

Thailand air this winter looks to be 40-50 percent higher than we paid on previous trips. It is early days yet for getting lower fares to SE Asia. Europe air appears to be up by about 25-30 percent depending on gateway city. Hotels are up slightly but it is too early to tell for winter and spring travel.

 

[ShokWaveRider]

We do not have a set budget. During covid zilch. No travel.

Same as us, whatever it costs based on value. But nothing since Covid. We live in a resort area, so it is not so hard. Weather is pretty much great all year round and lots to see locally, even if it does become repetitive.

 

[Flyfish1]

We do not have a set budget. Pre covid it was typically 7-8 weeks in Europe and 8-9 weeks of snowbird travel in places like Thailand, Costa Rica/Panama, or Mexico.

During covid zilch. No travel.

This year...five weeks in Portugal this summer. 10 days planned in Puerto Vallarta AI in November. 8-9 weeks of snowbird travel in Thailand this coming winter. And perhaps a month or so in Morocco during either the spring or the fall.

What will we spend? Not quite sure. Air is up for some destinations. Portugal air this summer was the same as it was two years ago. Direct flight to Mexico is up about 15 percent over what we have paid in the past. Not a big issue.

Thailand air this winter looks to be 40-50 percent higher than we paid on previous trips. It is early days yet for getting lower fares to SE Asia. Europe air appears to be up by about 25-30 percent depending on gateway city. Hotels are up slightly but it is too early to tell for winter and spring travel.

I'm curious, when you travel to say Thailand for 8 weeks do you rent an apartment? Stay in Hotels? Love the idea of extended stay travel just don't understand the nuts and bolts. Do you use a travel agency? Airbnb? Thanks!

 

[FlaMariner]

We've been RE for 4 years.

The travel budget is $18,000 a year and represents 19% of our $96,000 annual spend.

We've been living/traveling off points also but once those run out, an increase in the category is required.

We love to travel...especially cruising....and we are always going somewhere we have never been to get the bucket list crossed off.

South America....Machu Pichu and a cruise back to the USA from Chile in March......Trans Pacific cruise to Japan with a week there in October 23....

We head out twice a year...spring and fall....always look for off season or shoulder season.....Never Europe in the summer....rather the winter, spring or fall.....

Our motto is "get out there while you can"

 

[W2R]

I realize there is a huge spread amongst people in terms of travel expenses. Just curious what the range might be.

You're right! We both traveled so much for work, that we have zero desire for travel. We spend $0.00/year on travel for pleasure. The last time we left Louisiana to travel for pleasure, was in 2009 when we flew to Portland to attend my daughter's wedding.

 

[perez99]

First year in retirement for me. So far I have spent about $30k and have pre-paid about $6K of next year travel. I think I have about $4k more to go this year.

 

[2017ish]

We are outliers. Over 50% of our after tax spending (excluding taxes on Roth conversions). Only exception was 2020, when we only traveled for 5 months. Basically, we spend as much of our allowed spend as we can on travel. (This year, the portfolio started high, so I'm not sure that dw can achieve that goal!)

 

[georgemoe]

Retired for a couple of years here. This year we have about 15% of our budget (which includes pre-paying for a February 23 cruise this year) allocated to travel. Next year our overall budget goes down a bit (mortgage/heloc paid) and we are at about 20% for travel.

 

[Bamaman]

We don't budget anything for travel. I just pay the credit card bills whenever they arrive--and the Visa statement often beats us home.

We travel rather frugally, and don't even consider going unless airfares are half that of normal flights. My wife stays up late nights finding bargain trips. My hobby is finding great accommodations and arranging transportation.

We very seldom go anywhere in our retirement years--other than to our RV in the Blue Ridge Mountains. And it's $1 a night for our member owned campground.

So many of our friends go "to the beach"--3 to 4 times per year staying in rented condos. For what a condo costs, we can and do travel to Europe for slightly more.

After traveling extensively when working, there are just few places I need to see in the U.S. Large, congested cities are no longer places we enjoy. Give me a B&B halfway up the mountain above Innsbruck, Austria and I'm happy as I can be.

 

[Teacher Terry]

When I was married we spent anywhere from 5-14k/year depending on what we did. Now by myself because of Covid I hadn’t traveled for 2 1/2 years. This summer I went to Ireland and spent 5k. Next trip will probably cost the same and will be in 2024.

 

[Midpack]

Our annual budget is $3600. During Covid that dropped to zero, but we’ve overspent about double in the past 12 months or so. Travel is a very small fraction of our budget, because we’ve both traveled a lot, already been almost everywhere we want to visit. And until airlines get their act together, we’re not planning any flights, all driving distance travel for now. There’s a women who's been stuck at our local airport for 3 days, on the news last night - I’d be livid.

 

[TheWizard]

I'm on a dive trip in North Sulawesi, Indonesia as we speak, on the Lembeh Straits. Only second major trip this year for the usual reason.

I have a trip to Japan in November, to Australia in January/February, and to Zimbabwe/South Africa in April.
And maybe a dive trip to the Caribbean with my adult son in March, depending.

I'm in year ten of retirement. I don't really budget anything, I just pay the bills as they arrive.
Fortunately, I have a decently high retirement income...

 

[DrRoy]

In the first 6 years, we have spent between $20-50K per year. That includes nice cruises, trips to Europe, tours, some upper class air, and nice lodging. It is our biggest BTD.

 

[DrRoy]

Our annual budget is $3600. During Covid that dropped to zero, but we’ve overspent about double in the past 12 months or so. Travel is a very small fraction of our budget, because we’ve both traveled a lot, already been almost everywhere we want to visit. And until airlines get their act together, we’re not planning any flights, all driving distance travel for now. There’s a women who's been stuck at our local airport for 3 days, on the news last night - I’d be livid.

Even in 2020 we spent $20K, some of that before Covid hit. Several long driving trips, and pre-paid a cruise. We have dodged the air travel bullets for the most part. Worst experience was a 4 hour delay. We got back from Europe in May about a month before a strike on the airline we used that stranded many.

 

[Jackson D]

Travel Spending

$50K will sound like a lot to many people but I can vouch for the fact that a few big trips overseas can easily cost that much, especially if you like to fly Business class. I have been spending around that much for the last few years and I just take it one trip/one year at a time. I have lots of friends who regret not going when they were still able. If it fits your overall budget, then go for it. Once you are retired you can more easily go on cheaper days and stretch your dollars so that the budget takes you even farther. Since it is all discretionary spending, you can also just cut the number of trips back if you need to. One suggestion I would have is to look into a good travel card or two as they can easily pay for themselves with that level of travel. I like Chase Sapphire Reserve as it gives you lots of benefits such as free Global Entry fees, 4.5% rebate with travel and restaurant spending and free Priority Pass Lounge which is a great benefit. It also gives $300 annually in travel expense rebate. For that level of travel spending the rebates and benefits can easily eclipse the high fee of $550.