How to Travel in Retirement When You’re on a Budget

Retirement is an exciting phase of life. But because of inflation — including rising medical expenses and skyrocketing housing costs — it can be difficult to make ends meet. And if you have a desire for adventure, you may be looking at retirement travel on a budget. 

Whether you’re drawing from a retirement account like an IRA or 401(k), a pension, Social Security benefits or even a nice mix, life on a fixed retirement budget might leave less room for discretionary expenses. This could be big gifts for grandkids, a new car or that huge vacation you always dreamed of. But fixed retirement income doesn’t have to be a death sentence on your travel plans.

Your world travels may look different from what you once imagined, but you can still see the world, even with less money than you’d like. Here are seven tips for retirement travel on a budget.

1. Stick to Cheaper Lodging

You might have gotten used to more extravagant travel at the peak of your career. Luxurious accommodations with five-star dining, private golf courses, spas and adults-only pools are certainly one way to travel. But they can get expensive.

If you’re looking for retirement travel on a budget, consider motels, affordable Airbnbs or even hostels. That’s right: Though many hostels in other countries may brand themselves as “youth hostels” and skew younger, there is no age limit. You’ll also likely find most younger guests welcome older lodgers.

2. Use a Rewards Credit Card

You’ll have a lot of expenses in retirement: groceries, medications, housing, insurance, you name it. Many of these bills can likely go on a rewards credit card, and if you pay with the right one, you could earn some serious cash back or travel points or miles to fund your next trip.

Just make sure you get a credit card with no foreign transaction fees. This will save you even more money if you travel abroad.

3. Be Smart About When You Travel

You’re retired, after all — you’re on your own schedule. Avoid peak travel seasons, such as the summer and around the holidays, to find cheaper flights and lodging. You can often book great deals when traveling to a destination during the off-season. You’ll still find plenty to do.

It’s not just time of year; saving money on travel can come down to time of week. According to Expedia’s 2024 Air Travel Hacks Report, you’ll save up to 16% by flying on a Thursday, compared to Sunday (the most expensive day to travel). Expedia also recommends flying before 3 p.m. to avoid cancellations.

When you book your flight also matters. Sunday is the cheapest day to book flights, while Friday is the most expensive. For domestic flights, the sweet spot is at least a month before for 24% lower airfare. Conventional wisdom for international flights still holds: 60 days out is best. Any sooner or later, and you’ll pay more.

4. Eat Smart

Dining out three times a day while traveling can get expensive. While it’s nice to indulge in the local cuisine, try eating one meal out each day.

For your other meals, visit a local grocery store or farmers market. You can cook some dishes at your lodging if there’s a personal or communal kitchen. Pack snacks, like trail mix and protein bars, to take with you while you explore.

5. Don’t Forget About Your Memberships

If you belong to AAA or AARP, you can get big savings when traveling.

• AAA members get travel discounts, including fuel rewards, dining discounts, cheap entertainment tickets and rental car discounts.
• AARP members get travel discounts, including discounted rental cars, cruises, flights, vacation packages, hotels and resorts, tours, trains, entertainment, dining and even travel planning.

6. Travel Light and Travel Close

Checking a bag on a flight is getting wildly expensive. If you can live out of a carry-on for your trip — find lodging with or near laundry services — you can save a lot of money on baggage fees. Plus, smaller bags make it easier to use public transportation, so you might not need an expensive taxi or rental car.

You can also do retirement travel on a budget by traveling domestically. Find somewhere new and closer to home to explore. The U.S. is full of interesting museums, restaurants and natural landscapes.

7. Work (or Volunteer) Around the World

If you want to stay active, consider a job in the tourism industry. Find a job on a cruise ship, or work on a farm in a country you’ve always wanted to visit.

If you have a hobby or skill that translates to digital work — writing, design, teaching or consulting — you may be able to live the digital nomad lifestyle in retirement. Use your newfound side hustle income to fund your travels.

You can also volunteer your way around the globe. Voluntourism is popular for seniors, and programs range from wildlife conservation to building up communities to administering medical aid. Not all of your travels will be free, but you’ll get to see the world (and make a difference in it) with many of your expenses covered.

Timothy Moore is a personal finance writer and editor, a Certified Financial Education Instructor® and the editorial director of a print travel magazine. Find his work in USA Today, Forbes, TIME, Business Insider, LendEDU, LendingTree, Chime and SoFi.