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top tips to cut costs on your big retirement OE

April 19, 2017  |  #Retirement

how can you cut costs when you decide to enjoy retirement by travelling across the world?

We’ve got the big tips you need.

How you choose to enjoy retirement is up to you. You could pick up cycling (we hear it’s the new golf), or get some well-earned rest and relaxation in a dream home day in day out. For many retirees, however, leaving the workforce means it’s time for adventure.

Both Roy Morgan and the Australian Bureau of Statistics have recorded a significant increase in older Australians taking flight on overseas holidays in the last ten years. More than 5.5 million Aussies over 50 travelled in 2015 alone, and the number of people even in their late 70s and 80s heading overseas is on the rise.

While a big retirement overseas experience (OE) is a fantastic way to spend your later years, it’s important to make sure you’re still living within your means – you don’t want that month in Tuscany to come at the expense of the rest of your year! Here are some tips to manage money when you head to foreign shores.

Use the internet to cut your ticket price in halfOld town in Europe at sunset with retro feel

The temptation to buy the first tickets you see can be strong, but taking your time to shop across every nook and cranny of the internet can save you hundreds of dollars.

For example – booking six months in advance, flights from Melbourne to Rome are around $3,000 per person return on the Qantas website. Using the flight aggregator site SkyScanner, it is possible to find return flights for half of this.

How can you save money when you travel on a retirement OE?

There are other websites that can also find you extremely cheap deals, like Secret Flying and Holiday Pirates. To go even further, you can find the exact flights from an aggregator, then visit the airline’s site and book them yourself, rather than pay any third party fees. You can also do this for cruises and hotels, using aggregators like Expedia to secure even more discounts.

Make sure to look at all of the fine print, as changing cheap flights can be difficult and costly. But for your budget’s sake, you should shop around before you buy tickets.

Scenic view of the Mediterranean coastline from the town of Eze on the French riviera

Cover yourself with the right insurance

“If you can’t afford travel insurance, you can’t afford to travel.”

“If you can’t afford travel insurance, you can’t afford to travel.” That’s the hard word from Lonely Planet, and it’s sound advice. Securing travel insurance policies that cover everything imaginable is so important. A few hundred dollars more on a comprehensive plan at the outset can save you thousands in the long run.

The ability to return home with haste if necessary, get quality doctor or hospital treatment, or retain cover in case of theft is priceless. While many policies won’t cover existing medical conditions, you will have financial cover for things like booking tickets, injuries sustained on your trip and even cruise-specific benefits if you need them,

Find an all-in-one program

Sometimes it’s difficult to work out exactly what to do on your retirement OE. You get to Rome, have an Airbnb, go to Vatican City and the Galleria Borghese – what next? For many retirees, it’s easier to find a holiday package where you pay for everything in advance and have a set itinerary. This also cuts out many of the surprise costs that can pop up as you travel.

Are you covered for everything on your next overseas trip?

Organisations like Road Scholar do exactly this. From river cruises on the Seine in Paris to a Cuban extravaganza, package trips can give you all of the excitement you need, and your costs are clearly identified from the outset. Locally, organisations like Travel Team can set this up with minimal fuss.

These are the big ways to save money, but there are many small tips too – always carry cash, get vaccinated in advance, eat like a local. There’s a long list there. But for the big things that can really impact your long term financial planning, the team at Invest Blue has you covered