It is a common choice to go travelling and explore the world once you have retired. However, it can be very expensive, so you need to budget to fund it properly. If you want to travel regularly throughout your retirement, you need to put a plan in place now and start saving. It may be a case of building an extra source of income or using high-interest accounts to your advantage.
Here are a few tips and tricks on how to fund the retirement of a lifetime.
A retirement fund is an obvious option when it comes to financing your retirement years. You may have saved up a small or large amount of money, depending on how much you saved for your pension throughout your life. Find out what type of pension you have (such as a state or private pension) and take a look at your accounts.
Now you have a better understanding of your current finances and pension status; you need to look at your savings account. If you only have a small amount of money saved up, it may be time to start cutting back on your current expenses to save for your retirement travels. Bear in mind that you need to save some of your pension for when you return – you can’t blow all of your money on travelling adventures.
If you are over 55, you have access to applying for equity release from your home. This is a brilliant option for older people who want to access more available money. Equity release can give you a little flexibility, so you can use this cash for travelling in your retirement.
Look at your bank’s interest rates and consider switching your money and savings into high-interest accounts. You can invest more money into stocks, stock indexes and much more with just a little knowledge and research.
Some people have to work in their retirement to make ends meet. However, there are many ways you can make income when you are retired – such as renting out a room to a tenant, tutoring, dog walking or even developing a small business. Sell unwanted items or teach a musical instrument – the choice is up to you. You don’t have to work full time either – you may just need a little side hustle to put some money into your travelling fund.
You could even offer ironing services to your local community. The set-up costs are pretty low, and you can watch travel TV while you iron away. Dog walking and pet sitting services are also a great way to earn extra cash without joining a new office and team.
Make use of the skills you’ve developed throughout your life to earn a little extra in retirement.