Tips on Traveling Europe for Retired Boomers on a Budget

Now that you’ve retired and left the nine-to-five grind behind, you and your spouse have set your sights on taking that once-in-a-lifetime trip to Europe. Maybe you’ll start in England, work your way across the Chanel to France and from there to Spain and Italy. No matter what your travel plans, you’ll need plenty of cash for essentials like flights, hotels or Airbnbs, ground transport, meals, gifts, you name it. 

Extended travel, even in the best of financial times, isn’t cheap. Plus, if you’re living on a fixed income as a newly retired individual, you can easily allow your wanderlust to talk you into drowning in a sea of credit card debt. 

However, there is one solution to this problem. That is, you’ve owned your own home for decades. It’s called a reverse mortgage. Says the professionals at All Reverse Mortgage, Inc. or ARLO, you can tape into all the equity you’ve been building up in your family home for decades so long as you’ve been paying on the monthly mortgage religiously. Proceeds can potentially run in the hundreds of thousands, depending on where you live and the condition of your home. 

If approved for a reverse mortgage, you can take the proceeds in one lump sum payment or equal monthly disbursements. Also, it pays to look for a reverse mortgage company that offers you a lower interest rate since this will mean more money in your pocket. You never need to pay the loan back until you leave your house for good or you die. But the best part is you can use the cash to pay for your extended trip to Europe or wherever else you wish to go, without having to pull out the credit card even once.  

That said, what are some other tips for traveling Europe for retired Boomers living on a budget? According to a recent report by Kiplinger Personal Finance, flying to different destinations around the world can sound glamorous and extravagant, but it doesn’t need to swallow up all your savings. You just need to be smart about how you spend your money. Here are some penny-pinching tips for retirees traveling on a budget. 

Take Full Advantage of the Strong Dollar

Maybe domestically speaking, the dollar is rapidly diminishing in value (buying power in 2023 is one-quarter less than it was in 2022), but the dollar is still very strong when compared to other currencies like the Euro, for instance. This gives you much more buying power when visiting countries plagued by hyperinflation, like Turkey and Argentina.   

Watch “Sweet Spot” Airfare Deals

It’s always a good idea to plan your trip as far in advance as is reasonable. This doesn’t mean you need to book the trip right away. While airlines open their schedules 11 months out, you don’t need to purchase your tickets right away. Instead, keep an eye on “sweet spot” pricing, which comes about during low travel seasons such as the early spring or late fall. Then grab your plane tickets. 

Try Different Airports

To keep things simple, travelers are always tempted to fly one airline out of the main hub that’s closest to their home. But this isn’t always the most low-cost option. The most inexpensive airfares don’t always come from the big international airports. 

It’s not unheard of for airlines to slash their prices to certain destinations via smaller international airports located in the U.S. and abroad. With the international leg of your travels usually being the most expensive, you should look for deals that other airports are offering, even if it means flying out of a different city. 

Be Flexible with Your Schedule

Now that you’re retired and officially freed from the ball-and-chain of a work schedule, you can fly whenever you want. This means traveling at off-peak times when prices are far lower, such as a Tuesday or a Wednesday. Thursdays and Sundays are typically peak travel days, although this seems to have changed somewhat in the post-pandemic world. But avoiding these peak travel days is said to be a friendlier alternative when it comes to your pocketbook. 

Dodge Unnecessary Fees

Says Kiplinger, many credit and debit cards charge foreign transaction fees, which are usually somewhere around three to five percent with every purchase you make outside the U.S. or the U.K. If you consider all the times you swipe your cards, the fees can really add up. 

Look for cards that have zero foreign transaction fees, like the Bank of America Travel Rewards Visa or the Chase Sapphire Visa cards. Keep in mind both cards charge interest rates of anywhere between the high teens and low twenties. Use cash whenever possible. 

While generally speaking, it’s cheaper to get cash from an ATM rather than using an exchange, which can charge an exorbitant rate, your bank can charge you considerable fees for using the machine. It’s a best practice to call your bank prior to leaving and ask them to lower their fees for your trip. If you are a VIP customer, they might cut the ATM usage fees altogether. 

Your retirement is the perfect time to see the world. If you’re living on a budget, don’t let the cost of travel dissuade you from experiencing different cultures, foods, and geographies. Take full advantage of the many cost-saving tips out there. All it takes is a little extra financial planning and preparation.