TRAVELLING IN RETIREMENT

Many Australians who are retired catch the travel bug. If you are keen to pack your bags and set off for a few weeks or months then it’s extremely important to make sure that you have enough money to finance your holiday.

Here are some tips to ensure your trip runs as financially smoothly as possible:

■ See a financial planner well in advance of your trip. Speaking to a professional means that you will be able to get a better understanding in your mind on how much you need to save and appropriate strategies to do so. They can also advise on whether or not spending time overseas will have any effects on your retirement income or benefits you may be receiving.

■ When planning what type of money you are going to be bringing on your trip, you may want to consider multiple options. Using a pre-loaded debit card will mean that you cannot overspend. However, it may be a good idea to also take a sum of cash in foreign currency with you for places that don’t accept debit, and a credit card for emergency spending.

■ Try to work out an easy comparison between the currency you’ll need and the Australian dollar, using a currency converter online. It can help you understand the amount of money you’re about to spend.

■ Taking a debit or credit card with you overseas? Don’t forget to check the expiry dates to make sure you’re not stuck while away.

■ No matter how well you plan and save, it’s always good to have something extra in case of an emergency. Travel insurance is handy if you find yourself in an unexpected situation.

■ Your financial institutions probably have some good security measures in place and may put your accounts on hold when they are unexpectedly used in a foreign location. To avoid getting left in the lurch, let them know where and when you’re travelling before you leave.

Whether you like to plan every detail or see where the wind takes you, being financially ready before any overseas trip can save you a whole lot of money and hassle down the track.