By Janet Gray
Many Canadians dream of travelling in retirement. I know I do! People see this stage of life as the perfect time to explore new destinations, revisit favorite places or simply relax somewhere warm. However, with a fixed income and rising travel costs, careful planning is crucial to make your travel dreams a reality without jeopardizing your longer-term financial security.
Define Your Travel Vision and Budget
Start by clarifying your travel goals. Do you want one big trip a year or several smaller getaways? Are you interested in luxury cruises or budget adventures? Your preferences will significantly impact your costs. Annual travel spending for Canadian retirees can range from $10,000 to $50,000 or more, depending on your travel style and frequency.
Once you have a more defined vision, the next step is to research costs for flights, accommodations, activities and especially travel insurance, which is essential for older travellers. Build a detailed budget that includes all expected expenses and a healthy buffer for the unexpected. Also, factor in currency differences and plan a daily budget for food, plus local fees and transportation.
To stick to your budget while travelling, consider using cash for daily expenses when possible, which can help you avoid overspending on credit cards. Track your spending and adjust as needed.
Start Saving Early and Regularly
 The earlier you begin saving for retirement travel, the more options you’ll have. Even modest, regular contributions to a dedicated travel fund can add up over time. For example, saving $100 per month for 20 years totals $24,000, not including investment growth. If you’re already retired, adjust your goals and timelines to fit your current spending and income situation.
Some retirees take on part-time or seasonal work specifically to fund travel, ensuring their day-to-day needs are covered by their other income sources. Remember, while it’s tempting to splurge on a dream trip, avoid spending so much that it affects your long-term quality of life.
Use the Right Savings Tools
In Canada, several financial tools can help maximize your travel savings:
Tax-Free Savings Account (TFSA): Contributions grow tax-free and withdrawals aren’t taxed, making it ideal for travel savings. And you can refill any amounts withdrawn.
Registered Retirement Savings Plan (RRSP): An RRSP offers tax advantages for long-term savings, but withdrawals are taxed as income, so plan withdrawals carefully. Consult with your financial professional first.
High-Interest Savings Accounts and GICs: These are useful for short-term savings and keeping funds accessible for upcoming trips.
Leverage Retirement Flexibility
One of the biggest advantages of retirement is a flexible schedule. You can travel during off-peak seasons, when prices are lower and destinations are less crowded. Often, the weather is also more temperate. Airfares and accommodations are often cheaper mid-week or outside school holidays. Last-minute deals and flash sales can also offer significant savings.
Seek Out Discounts and Deals
 Retirees often qualify for senior discounts on transportation, attractions and accommodations. Always ask about available discounts when booking. Joining loyalty programs or travel clubs can help you accumulate points for future travel and access exclusive offers. If you’re a member of organizations like CAA or CARP, check for additional travel and insurance discounts.
Get Creative to Stretch Your BudgetÂ
House sitting: Stay for free in someone’s home in exchange for looking after their property and/or pets. This can dramatically reduce accommodation costs and provide a wonderful local experience.
Home exchanges: Swap homes with another traveller for mutual savings.
Budget accommodations: Many hostels and guesthouses now cater to older travellers, offering private rooms at lower prices.
Group travel: Travel with friends or family and share accommodation and food costs.
RV or camper travel: For the adventurous, travelling by RV or camper can save on both lodging and dining expenses.
Don’t Forget Travel Insurance
Travel insurance is essential for retirees, especially when leaving Canada. Provincial health coverage is limited abroad, and medical costs can be high. Consider annual travel insurance if you plan multiple trips per year; it’s often more cost-effective than buying separate policies for each trip.
Work With a Financial Professional
 A financial planner can help you determine how much you can safely spend on travel each year without risking your long-term financial health. He or she can also help you integrate travel goals into your overall retirement plan.
Final Thoughts
With thoughtful planning, disciplined saving and a willingness to seek out deals and creative solutions, retirement travel can be both fulfilling and financially sustainable. Start early, stay flexible and enjoy the adventures ahead. Bon Voyage!
Janet Gray, CFP is an advice-only financial planner with Money Coaches Canada. She is based on Ottawa with services offered Canada-wide. moneycoachescanada.ca/about/Janet-Gray/
