Retirees often look forward to spending time with their families, enjoying leisure activities, and for a majority of Americans – travel.
Though many Americans plan to spend their retirement seeing the world, according to a recent study by The Global Coalition on Aging (GCOA) and Transamerica Center for Retirement Studies (TCRS), less than 20 percent of Americans have seriously factored travel expenses into their retirement savings plan.
Travel is an excellent way to maintain health and mental vigor throughout retirement. In fact, people who travel during retirement show higher levels of satisfaction physically, emotionally and financially than non-travelers, but it needs to be planned for. According to the same study, nearly a quarter of Americans believed travel was worth saving for and it was the second place for retirement goals, only slightly surpassed by spending time with family.
With travel as a highly beneficial and highly desired aspect of retirement, it is important to begin saving early and budget the right amount. Make sure to examine if your finances are able to keep up with the lifestyle you have envisioned. Travel, especially international, has high costs. As part of a balanced retirement plan, fixed indexed annuities (FIAs) can offer an opportunity for a steady, guaranteed lifetime income, which can be used for bills and other expenses; which can give you peace of mind and even the financial ability to travel.
Visit our Smart Buyers Checklist to ensure you are asking the right questions when purchasing an annuity and preparing for future travels.