When it comes to planning for your retirement, your primary goal may be to spend more time with your family. Maybe you want to buy a small condo closer to the grandkids, lease a motorhome and take them RV camping near San Diego every summer, or something else entirely. Whatever the dream, it means saving enough money to pay your bills for the rest of your life on top of the funds needed to turn it into a reality.
Here is some advice for those interested in planning their retirement around the prospect of traveling and seeing family as much as possible:
Consider Changing Your Living Situation
Your biggest expense will still be maintaining your home in retirement, particularly if you rent or you’re still paying on a mortgage. Even if the home is paid for, downsizing means reducing the cost of paying for upkeep and the cost of utilities. Additionally, selling a $300,000 home to buy a $150,000 home can put a significant amount back into your retirement account.
Change Your Lifestyle
Most people don’t realize that living a healthier lifestyle can help them save more for retirement, but it can. If you stop smoking, limit your drinking, eat healthier meals, and get more exercise on a daily basis, you’ll be able to keep your body healthier for a longer period of time. This means you’ll have more years of quality living in your retirement years and you’ll be less likely to develop serious illnesses. Heart disease, many types of cancer, and even cognitive decline are just some of the conditions a healthier lifestyle can help you avoid.
You Can Still Take Vacations
Traveling on a fixed income isn’t as impossible as it may seem, but it will require careful planning. By developing a budget that lets you spend less than the recommended 4% of your retirement savings each year, you can save enough to help cover the costs of an annual vacation. Finance experts suggest cutting that down to 2.9% and adjusting for inflation over time.
Maximize Your Savings
When it comes to retirement planning, how much you can save will determine how well you can grow those savings. Having more money to invest means building a bigger nest egg, which can make your retirement far more enjoyable. It might be worthwhile to look for additional sources of income and contribute the extra money directly into your retirement account. This will provide more resources, allowing you to take bigger investment risks and helping you maximize your overall earnings.
More Traveling Tips for Retirees
You can also reduce or eliminate unnecessary spending, such as bestowing expensive gifts, making home improvements, and eating out every week. Planning vacations that allow you to travel in the offseason and looking for hotel deals will also help you save money. If you’re still not sure you can afford to travel, cut out the frequent dining bills by planning to prepare your own meals on your trip. Perhaps dine out just once or twice on your vacation.
When it comes to enjoying life in retirement, preparation is the key. The sooner you begin saving for your retirement, the more you’ll have to support yourself in those later years. Even if you’re getting a late start on your retirement savings, saving something is better than not preparing at all. A financial advisor can help you invest your savings to maximize growth, so you’ll have something to support yourself in your senior years. Looking for ways to minimize expenses will also help you live a better life in retirement. Taking the time to anticipate all of your needs and developing a plan to pay for them will help you live the retirement of your dreams.