One of the most important aspects of retirement is traveling. It is a number one priority for most of my clients and they often have very ambitious plans. As part of my exercise to better understand client bucket lists and goals I have them list the things they want to see, do, and experience before they die.

Some common responses include travel to all the continents, visit all of the state parks in the US, spend a month each year in Europe, and travel in an RV around the country. Some of the more exotic destinations that they want to explore are Bora Bora, Fiji, and the Galapagos islands.

As people prepare for retirement, they need to put together a realistic assessment and estimate of annual travel costs. Travel expenses of $20K a year have a far different impact on your yearly cash flow than $7K a year—and cash flow is king in retirement! A $10K increase in spending can make a huge difference in whether or not you will outlive your funds during your lifetime. Thus, it is essential to be realistic about your goals, but also to try to save money on your travel pursuits. Here are some tips and considerations for cutting your travel costs.

First, determine how you will travel in retirement. 

Will you go on a large overseas trip every three years with domestic travel in the off years?  How many trips will you go on each year and for how long?  Do you prefer several trips that span a long 4 day weekend or one large ten day trip?  Would you rather have a second home in retirement and primarily travel to and from both locations, forgoing any additional travel?  How much of your travel budget will be designated for visiting your children and grandchildren?  Can you stay with family or friends when you travel to save money?

Use the information above to budget what your anticipated annual costs will be in retirement. You can look at your current travel spending and adjust your budget up accordingly based on your plans. If you spend roughly $7,000 a year in travel and expect to double that in retirement your budget would be at least $14,000 a year.

Remember that as we age we may not be as able or willing to travel. You may want to decrease your budget in your 80s and possibly assume that no major travel will be necessary in your 90s. This enables you to “front load” your travel plans in the early years of retirement.

Regarding cutting costs, if you and your spouse or partner are both retired, you can travel at a moment’s notice and are generally more flexible regarding the times and dates. Considerable savings can be realized if you travel outside the peak time periods. Consider this when booking trips and flights.

Save Money on airfare

Use websites such as kayak.com and airfarewatchdog.com to comparison shop airfares and book either well in advance to lock in low rates or last minute to take advantage of timely deals.  If you tend to fly a specific airline for most of your flights, consider signing up for an annual pass to their lounge. This will provide you with a comfortable place to wait if your flights are delayed as well as provide you with complimentary snacks and beverages. Use a credit card that provides mileage bonuses or pays for baggage fees.

Save on accommodations

One site that features high end resort properties at deep discounts is jetsetter.com. You can sign up for their newsletter to receive weekly deals. Cruise lines also offer special deals to previous travelers if they are under-booked, so make sure to get on their email list.

Another popular way to save serious money on accommodations is to house or apartment swap with someone else. If you want to explore that option, look into Homeexchange.com.

Airbnb.com also offers you lodging from private owners and has become popular in high rent cities such as New York and San Francisco.

Another interesting app called Hotel Tonight allows you go book unsold rooms last minute for that day at deeply discounted prices.

Of course never forget to use your AAA or AARP discount if you are a member, and research your hotels and other lodging at Tripadvisor.com. I find that the reviews are generally very accurate and can help you plan a trip that fits your tastes and your budget. You can even check out restaurant reviews to plan your meals.

Another fun planning tool is to create a board on Pinterest. You can add all of your desired destinations to one board or create a board for each trip.

Finally, don’t hesitate to use a travel agent or service that specializes in the destination you are interested in as they can often provide you with an insiders’ perspective and save your time and money.