Road trip to retirement

Many Queenslanders dream of hitting the open road when they retire, however, the expenses associated with the lifestyle change can put a strain on retirees’ finances.

RACQ Financial Wellbeing’s Jess Colquhoun said planning ahead for travel could help reduce costs in retirement.

“Retirement looks different for everyone, but if you plan to join the ranks of grey nomads crisscrossing Australia with a caravan in tow, there are a number of things you can do now to save you money and reduce stress,” Mrs Colquhoun said.

While retirement may seem a long way off, Mrs Colquhoun said it was never too early to plan your future lifestyle.

“The ideal time to start thinking about your retirement lifestyle is when the kids leave the nest,” she said.

“The earlier you start thinking about your goals and travel plans the better as it gives you more time to make your dreams a reality.”

Mrs Colquhoun said it was important to consider large travel expenses before retirement.

“If you’re planning on touring Australia with a caravan, consider purchasing your caravan and the right tow vehicle early so you can pay off any loans while you’re still working,” she said.

Mrs Colquhoun said the transition to retirement offered many opportunities to save on travel essentials.

“Cutting back to part-time work can be a great way to ease into retirement, especially if you can start going on trips with your caravan,” she said.

“You’ll quickly learn what you like and don’t like about retirement and the grey nomad lifestyle and can make tweaks while you are still earning a salary.

“Before you hit the road, make sure you take advantage of any discounts available to over 55s and loyalty benefits on essentials such as fuel, insurance and roadside assistance.”

Information on RACQ’s discounts is available here.

Mrs Colquhoun said taking the time to talk to your kids about your retirement plans and their own finances could pay off in the long run.

“One of the biggest disruptions to your retirement can be looking after kids and grandkids in the event that they experience a crisis or financial shock,” she said.

“Making sure your kids are properly insured and are equipped to look after their own financial wellbeing will save you money and stress down the track.”

The information has been prepared for general information purposes. Any advice is general advice and does not take into account any person’s particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs.