Nearly two-thirds (62%) of people have set money aside specifically for travelling while in retirement, according to Legal & General’s survey.
When surveyed about the types of trips retirees plan to take, short staycations were the most popular, with 49% of 75-year-olds and over having already been on such a UK weekend break since reaching retirement age.
The findings also revealed 34% of people dream of long weekend city breaks in Europe, while 32% of 55-64-year-olds would like to go on a world tour during retirement. Even among those aged 75+, 3% have already embarked on a world tour and 15% still hope to do so, showing that retirement dreams persist regardless of age.
Spain is the most popular destination for all ages, with 46% of those surveyed choosing to visit the country. Italy is the second most popular destination, with 41% favouring it for their retirement travels.
Spain was also the most popular choice across the UK, except for Wales, where 53% of respondents favoured Italy.
Retirees are getting their USA travel in earlier, with 33% of 55–64-year-olds having the USA as their top pick. However, this number drops to 24% for those over 75, likely due to the demands of long-haul flights.
The overall cost was the biggest factor for 61% of UK adults when choosing a travel destination. Financial preparation is crucial to achieve retirement travel dreams, with 62% of 55 year-olds and over setting money aside to fund their plans. Despite this, 21% of respondents admitted they had not made any financial preparations, either for past trips or future plans.
The survey highlights that a significant portion of retirees recognise the importance of budgeting to fully enjoy their travels. For instance, the Pensions and Lifetime Savings Association’s (PLSA) Retirement Living Standards suggests that couples need a combined £43,100 annually for a moderate retirement lifestyle, which includes budget for both a 14-night holiday abroad and a UK-based long weekend.
Men were generally more diligent about considering their travel finances, with a higher percentage (62%) carefully planning than women, of whom 56% carefully considered their finances in retirement. Lorna Shah, Managing Director, Legal & General Retail Retirement and CEO of Legal & General Home Finance said:
“Planning for retirement is crucial not only for maintaining financial stability but also for enabling a fulfilling and enjoyable post-work life.
As people phase into retirement, having a well-thought-out financial plan can make a significant difference. It provides the freedom to pursue long-held dreams, such as travelling to new destinations or engaging in much loved hobbies.
At Legal & General, we have a range of different planning tools to help you financially prepare for your retirement such as the Retirement and Pension Income Calculator and a downloadable budget planner to help keep your retirement plans on track.”