The Changing Landscape of Retirement Travel
For Jim Laabs, a 72-year-old retiree from the Midwest, travel has always been a significant part of life. A former regional sales director, Laabs spent a substantial portion of his career—65% to 70%—traveling across the US and Canada. As he neared retirement, he and his partner yearned for a more relaxed pace, contemplating whether they could afford to be snowbirds in Southern California or Arizona for about five months each winter, both regions known for their warm climates.
In 2022, Laabs retired and they tried out this lifestyle for a month, spending about $5,000 on a 28-day rental near Huntington Beach in Southern California. However, with rising costs year after year, they’ve had to adjust their plans, opting for more affordable accommodations and fewer vacation days. This year, they reserved a one-bedroom suite in Phoenix for $3,100—62% less than their 2022 stay—yet this time, their visit lasted only nine days.
Laabs isn’t alone in facing financial constraints that limit travel in retirement. Discussions with several individuals planning retirement reveal that many are re-evaluating their travel aspirations, either scaling back or entirely abandoning their plans due to increasing expenses.
According to a late 2022 AARP survey, around 70% of respondents aged 50 and older expressed interest in traveling for pleasure in 2025, yet most anticipated spending no more on their trips than they had in 2024, citing cost as the primary barrier to travel.
Laabs and his partner have an annual travel budget of approximately $7,000. Despite having what he calls a “comfortable, but not extravagant” retirement income and receiving more than double the average Social Security benefits, Laabs finds it challenging to stay within budget. He remarked, “We’re going to live our life, and if we can make it work financially to do a week or two of cold weather to get out of the area, then we’ll do that.” However, he noted that travel would be among the first expenses to be sacrificed if adjustments to their budget were necessary.
Market Stability and Travel Costs
For many retirees, aspirations of travel appear increasingly unattainable amidst rising expenses. “I can’t pull my money out either, because pulling it out when it’s down is the worst thing you can do,” expressed retiree Sorell. Financial advisors concur that it is unwise to react impulsively during market downturns. A Gallup survey revealed that 62% of American adults have investments in stocks, mutual funds, or retirement accounts, with older individuals holding a significant portion of this wealth.
Facing fluctuating markets, retirees like Sorell contemplate their financial futures. “One of the few things I can cut down on is travel,” she said, indicating a willingness to reduce, but not eliminate, her travel plans. Jake Falcon, founder of Falcon Wealth Advisors, advised that individuals needing money for immediate expenses should avoid placing those funds in volatile markets, while also encouraging patience through economic fluctuations.
Exploring Alternative Travel Options
For those retirees who are feeling financially strained yet still desire to travel, Falcon suggests exploring creative options off the beaten path. Jeff Mayernik and his wife, Sandra, both former real estate professionals, did just that when health issues prompted them to consider early retirement. After analyzing their savings, home equity, and future Social Security, they discovered they could retire at age 59, but without a fixed residence.
“There are 100 countries where we can stay 90 days at a time, so let’s go see them,” said Jeff, 61. They devised a plan, sold their belongings and a 5-acre property in Oregon, and set a target budget of $40,000 annually, covering both travel expenses and daily costs such as insurance and cell phone bills. “In year one, we went over budget,” admitted Sandra, 61. “In year two, we’ll be closer. We’ve learned some things, obviously, but it was less expensive than just living in one place in Oregon without traveling.”
