How to Fund Long-Term Travel in Retirement Without Depleting Your Savings

Roy Y. Gagaza

May 7, 2025

Long-Term Travel

Traveling the world in their later years is an exciting prospect for many retirees. The freedom to explore new places and cultures can offer a fulfilling way to spend your retirement. However, funding long-term travel requires careful financial planning to ensure you don’t run out of money before the journey ends. Fortunately, with some strategic moves and thoughtful budgeting, it’s possible to travel long-term in retirement while maintaining financial stability. Here are some practical tips for funding your dream travels without draining your savings.

Start with a Solid Travel Budget

Setting a solid travel budget is the first step in making long-term travel affordable. Understanding how much money you need to travel is crucial to prevent overspending. Begin by researching potential destinations and estimating accommodation, meals, local transportation, and entertainment costs. Consider how long you plan to travel and create a monthly budget, including fixed expenses (like rent or insurance) and variable costs (such as food or excursions).

Factor in some flexibility for unexpected expenses, but aim to be realistic about your spending. It’s essential to match your travel budget to your retirement income and expenses, ensuring you can maintain your lifestyle without dipping into your retirement savings too quickly. A solid, well-thought-out budget will allow you to enjoy the adventure while maintaining peace of mind about your financial future.

Leverage Retirement Accounts Smartly

Your retirement accounts—whether a 401(k), IRA, or pension—are a significant source of income during retirement. Tapping into these accounts can help fund your long-term travel, but it’s essential to do so strategically to avoid penalties and unnecessary tax burdens.

Start by understanding your withdrawal options. If you’re over 59½, you can begin withdrawing from your retirement accounts without penalty, though taxes may still apply depending on the type of account. One option is to follow the “4% rule,” which suggests that you can safely withdraw up to 4% of your total retirement savings each year, ensuring your funds last for decades.

Consider setting up a systematic withdrawal plan to take out only what you need each year. To avoid depleting your funds too quickly, consider working with a financial advisor to help determine a sustainable withdrawal strategy that aligns with your travel goals and long-term financial security.

Take Advantage of Passive Income Streams

Another effective strategy for funding long-term travel is by creating passive income streams. These income sources can generate cash flow without requiring your active participation, allowing you to sustain your travels while minimizing the drain on your savings.

Real estate can be an excellent option for generating passive income. If you own property, consider renting it out while you travel, either long-term or through platforms like Airbnb. Renting your home or other properties can provide a steady stream of income that helps cover travel expenses. If renting out your home isn’t an option, consider investing in rental properties or dividend-paying stocks, which can generate regular income.

Alternatively, you could explore side businesses or freelance work that you can do remotely. Some retirees use their skills by offering consulting, writing, or virtual assistance services. Remote work allows you to earn income from anywhere in the world, helping to supplement your retirement savings without being tied to a specific location.

Downsize and Cut Unnecessary Expenses

Before setting off on long-term travel, one of the best ways to free up additional funds is by downsizing your living situation and cutting unnecessary expenses. If you own a home, consider selling it or renting it out to generate income. Many retirees find that downsizing to a smaller, more affordable living space reduces housing costs and minimizes ongoing expenses like utilities, maintenance, and property taxes.

Along with downsizing, you must evaluate your regular expenses and identify areas where you can cut back. Review subscriptions, memberships, and other discretionary spending and determine where you can reduce costs. Freeing up money from your monthly expenses allows you to allocate more toward your travel budget without dipping into your retirement savings.

Use Budget-Friendly Travel Options

While long-term travel is often associated with luxury and indulgence, there are many ways to travel on a budget. The key to stretching your travel fund is to focus on affordable alternatives that allow you to enjoy the experience without overspending.

For example, traveling during the off-season can significantly lower costs for flights and accommodations. Look for travel deals, discounts, and flexible flight options to save money on transportation. You can also consider staying in hostels, guesthouses, or vacation rentals, which are often more affordable than traditional hotels. Additionally, consider cooking your meals and using local markets for groceries instead of dining out regularly, which can save you substantial amounts over time.

Public transportation is another cost-effective way to get around when traveling. Rather than renting a car or relying on taxis, local buses, trains, or bicycles can save you money and provide a more authentic travel experience.

Earn While You Travel

To extend your travel experience and ease the financial burden, you can also explore opportunities to earn income while traveling. Many retirees find part-time or temporary jobs that allow them to supplement their savings while exploring new places. Working as a freelance writer, teaching English abroad, or taking on short-term consulting projects are just a few ways retirees can generate income while moving.

Some retirees also work in exchange for accommodation and meals. Organizations like WWOOF (World Wide Opportunities on Organic Farms) and Workaway offer travelers the opportunity to work on farms, hostels, or other community projects in exchange for room and board. These programs can drastically reduce the cost of living while traveling, allowing you to visit more places without worrying about accommodation costs.

Secure Comprehensive Travel Insurance

Health insurance and travel-related emergencies are critical when traveling long-term, especially internationally. Medical costs can be high, and you don’t want to risk incurring unexpected expenses while abroad. Comprehensive travel insurance is essential for protecting both your health and finances.

Look for travel insurance that covers medical emergencies, evacuation costs, trip cancellations, and lost luggage. Some plans are specifically designed for long-term travelers and offer flexible options for extended stays abroad. Investing in travel insurance ensures that you’re financially covered in unexpected events, such as a medical emergency or flight delay, and helps safeguard your savings from unforeseen circumstances.

Final Thoughts

Long-term travel in retirement can be one of the most rewarding experiences of your life. You can make your dream of exploring the world a reality by setting a realistic budget, leveraging your retirement savings, creating passive income streams, downsizing your home, and embracing budget-friendly travel options. With careful planning and strategic financial management, you can travel the globe without draining your savings and ensure your retirement years are filled with adventure and fulfillment.

Call Journey Wealth Management today at 209-825-8888 or 808 469-4361. You can also visit JourneyWlthManagement.com to learn more about Roy Gagaza, his team, the WealthWize Way, and how proper healthcare planning is essential for a successful retirement in 2025 and beyond.