How to Fit Travel into Your Retirement Budget

08.05.2025 | Category: Travel & Living

Summary: Your retirement years can be filled with exciting travel adventures. This article explains how, with effective planning, you can see the world and visit your dream destinations without draining your savings.

Retirement is your time—a season when the alarm clock takes a backseat and you finally get to explore more of the world on your terms. Maybe it’s a road trip across the country, a beach getaway with your spouse, or finally visiting that dream destination you’ve had on your bucket list for years.

But, if you’re living on a fixed income, you are probably wondering: Can I really afford to travel in retirement without derailing my budget?

The answer is yes, and it all starts with building a retirement travel budget that works for you. You can enjoy retirement travel experiences without sacrificing financial peace of mind with these smart budgeting moves.

1. Start with a realistic travel budget

With retirement travel budget planning, it’s all about staying realistic. Set aside an amount that fits your income and lifestyle. Whether you’re dreaming of one big trip or a few smaller getaways, begin with what you can truly afford.

Factor in things like the cost of transportation, lodging, meals, activities, and a little cushion for emergencies or insurance. This retirement savings calculator, for example, can help you determine if your savings are enough to cover these travel expenses and more.

2. Take advantage of senior discounts

As a retiree, you’re in the perfect position to save money with senior discounts. Airlines, hotels, restaurants, and even attractions often offer special rates — you just need to ask!

Carry an AARP card to unlock many discounts.¹
Always inquire about senior rates when booking your travel.
Look out for special travel deals designed just for retirees.

These discounts can help you explore some of the best places to travel for retirees on a budget.

3. Downsize big trips, not the experience

Instead of splurging on expensive vacations, consider downsizing your trips to more affordable destinations. This doesn’t mean sacrificing fun or relaxation — you can find budget-friendly places that still offer great experiences.

4. Use points, rewards, and travel credit cards wisely

Travel credit cards are a great way to stretch your retirement travel budget. Rewards points or miles can be used for free flights and hotels. Remember to pay off your balance every month to avoid interest fees. If you’re heading abroad, look for cards that don’t charge foreign transaction fees — it’s an easy way to save even more on your travels.

How real retirees are traveling well on a fixed budget

You don’t need a luxury retirement fund to explore the world—just a little creativity and smart planning. Here’s how some retirees are making travel work on a fixed income:

Jeff and Sandra sold their home in Oregon and now travel full time, living on about $40,000 a year. Instead of splurging on big-name destinations, they opt for places like Bosnia, which offers European charm at a fraction of the cost.²
Nancy, a 72-year-old from Connecticut, travels through Europe without breaking the bank. She keeps things simple—budget flights, small guesthouses, and local eateries—and still finds room in her spending plan for unique experiences, like lace-making classes in Belgium.³
Jenell and Kim, like many RV-loving retirees, hit the open road with their van packed and ready. They cook their meals, sleep in their vehicle, and use senior passes for U.S. national parks—turning everyday travel into affordable adventures.⁴
John and Bev, a couple from Florida, traded their house for backpacks and have since explored 90+ countries. Their secret? Living light, spending intentionally, and choosing experience over luxury.⁵

Each of these retirees proves that, with thoughtful retirement travel budget planning, it is possible to see the world without draining your savings. It’s less about the money and more about how you use it—focusing on what matters, skipping what doesn’t, and saying yes to adventure.

*The situations described are hypothetical in nature and do not depict any actual person or event.

Smart senior discounts to stretch your retirement budget

Many travel services offer nice savings once you hit a certain age, but you’ve got to ask. Here are a few examples:

Amtrak: Travelers aged 65+ automatically save 10% on most fares. For example, if planning cross-border trips with VIA Rail, seniors 60+ also qualify.⁶
Airlines: Southwest, United, American, and Delta sometimes offer senior fares. These aren’t always listed online—calling can unlock them.
Car rentals: AARP members often save up to 35% with providers such as Avis, Budget, Hertz, and Alamo, and typically avoid additional driver fees.⁷
Cruises: Major cruise lines such as Carnival, Royal Caribbean, Holland America, and Celebrity often have senior-exclusive fares—just ask during booking.⁸

Quick tip: Always carry a senior or AARP card and ask about discounts—even if it’s not obvious when booking.

Practical travel tips for retirees on a budget

Make every dollar count (and every journey memorable) with these savvy five travel strategies.

1. Travel during the off-season

Travel in spring and fall to avoid crowds and get lower prices on flights and lodging.

2. Choose affordable destinations

Some of the best places to travel for retirees on a budget include:

International destinations: Portugal, Thailand, Mexico, Costa Rica, Vietnam, and Laos⁹
S. destinations: Asheville, N.C., Santa Fe, NM, Savannah, Ga., and scenic national parks

3. Use travel credit card rewards

A card with no foreign transaction fees can help fund flights or hotels, but only if you pay on time to avoid interest.

4. Get smart travel insurance

Your Medicare plan may not cover international care, so make sure to check your policy before travel.
Compare senior-friendly plans before you go.
Don’t skip coverage for medical emergencies or trip cancellations.

5. Pack light, plan well

Stick to carry-ons to skip baggage fees—and for easier mobility.
Use apps to stay organized.
Join senior travel groups or forums to share tips and deals.

Plan wisely, travel freely

With a little planning, you can make your dream retirement trips a reality without stressing over money. Get started by creating a well-thought-out retirement travel budget. Do your research; you’d be surprised by how much information is available that can help you save on travel expenses. Finally, follow these practical, tried-and-tested tips above.

At Mutual of Omaha, we’re committed to helping you protect your future while enjoying your present. Ready to make travel a regular part of your retirement? Contact us today to help you develop a financial plan for a worry-free future.

Frequently Asked Questions

Q1: Do I really need travel insurance?

You don’t have to get travel insurance, but it’s definitely a smart move—especially if you’re traveling abroad. Medicare usually won’t cover medical bills outside the United States, so without insurance, you could face big expenses if you need care.

Good travel insurance covers things like medical emergencies, trip cancellations, lost luggage, and even emergency evacuation. Look into providers that offer plans tailored for seniors.

Q2: How can I manage my health while traveling?

A little planning goes a long way. Always bring enough of your prescriptions (plus copies of them) and keep a note from your doctor handy. Check if your insurance covers healthcare where you’re going, or consider travel insurance with medical benefits. It helps to research local clinics or hospitals near your destination ahead of time. Don’t forget to pack basics like pain relievers, hand sanitizer, and stay hydrated and active during travel.

Q3: Where can retirees travel affordably and safely internationally?

There are plenty of magnificent destinations abroad to consider that won’t break the bank and offer peace of mind:

Portugal: Affordable, safe, with great healthcare and charming cities.
Japan: Clean, efficient, and super safe, with outstanding public transport.
Canada: Close to home with friendly cities and good healthcare.
Costa Rica: Beautiful, relaxed, and known for friendly locals.

Always check travel advisories and recent reviews before booking.

Disclosures:

Registered Representatives offer securities through Mutual of Omaha Investor Services, Inc., Member FINRA/SIPC. Investment Advisor Representatives offer advisory services through Mutual of Omaha Investor Services, Inc. Mutual of Omaha Advisors is a division of Mutual of Omaha Insurance Company.

All investing involves risk, including the possible loss of principal, and there can be no assurance that any investment strategy will be successful.

Mutual of Omaha and its representatives do not provide tax and/or legal advice, and the information provided herein is general in nature and should not be considered tax and/or legal advice.

Not all Mutual of Omaha agents are registered representatives or financial advisors.

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