24th January, 2018 | 3 minutes
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Top tips on how to fund your retirement travel

by Danielle O'Reilly
InfoChoice

Originally published by InfoChoice, part of the iSelect Group.

For many older Australians, travelling during retirement is a much-deserved reward after a long career. Whether you want to buy a caravan and trek around the country, jump aboard a cruise ship, or sign on for a luxury tour of Europe, you’ll need to spend some money to have a little fun.

The trick to working out which holiday will suit you is to look at all the available options and see which ones match your lifestyle. Make a short list, then review the costs. Once you’ve narrowed it down to one option, you’ll be able to choose the most appropriate way to fund your next adventure.

Top tips on how to fund your retirement travel

Travelling in your retirement

Older Australians are the fastest-growing age group travelling overseas, according to the Australian Bureau of Statistics. The number of people aged between 65 and 74 holidaying abroad increased more than 80% between 2011 and 2016.

Australians aged 45 to 69 years old are keen to seek out new experiences, with travel high on that list. We’re also among the biggest spenders in the world when it comes to travel, with a TripAdvisor study finding Australians planned to spend an average of $14,500 on travel in 2016 (more than any other nationality).

Planning your adventure

Going on a cruise: Cruising holidays are an increasingly popular option for a lot of holiday-makers. They offer everything you’d expect from a holiday –entertainment, exotic destinations, dining and shopping – all under one roof. Cruises are ideal for people with physical limitations who yearn for some fun as they get older. (Note: make sure you remember to organise your cruise travel insurance before you go!)

Relaxing on a luxury tour: Perhaps you’d like to go on an all-out luxury tour through Europe or Southeast Asia? You can usually prepay your accommodation, meals and travel expenses and a knowledgeable guide can show you the best locations.

Carefree in a caravan: For those looking for adventure a little closer to home, you could try investing in a caravan and spending a year or two travelling around Australia.

Top tips on how to fund your retirement travel

Paying for your travels

When it comes to travelling, many options allow you to prepay for some, if not all, of your trip. Cruises and tours may also include upfront fees.

If you’ve saved up some money but need more, or don’t want to use all of your available cash, you might consider supplementing your savings with a personal loan. Personal loans allow you to withdraw a sum of money that is repayable over a set term. This is usually one, five or seven years. You’re able to take out a secured or unsecured loan, depending on the amount of the loan.

Once you’ve boarded the ship or touched down in another country, you might want to use your credit card to pay for your day-to-day expenses rather than exchanging your money for the local currency. Just watch out for the fees you might incur by using your card overseas. It’s also a good idea to keep an eye on the exchange rate, as this will affect the amount you’re spending.

If you’ve managed to pay off your mortgage before you retire, you might consider taking out a reverse mortgage. A reverse mortgage allows you to borrow against the equity in your property, which you can access as a lump sum, income stream or line of credit.

No matter which option you choose, it’s important to get the right financial advice so you find a suitable financial solution for your travels.

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iSelect does not compare all products in the market. Any advice provided in this content is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice we give you, having regard to your personal situation, before acting on our advice or purchasing any product. iSelect does not compare all products in the market. Not all products are available at all times.

Originally published by InfoChoice, part of the iSelect Group. This content may not be altered. Licensed to iSelect.

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