Boomers Are Spending More Than Ever on Travel in 2020 | Senior Finance Advisor

The benefits of travel are priceless. Adventure, relaxation, and culture bring treasured experiences to travelers across the globe. However, travel can be expensive and Boomers are planning to spend more money than ever in 2020.

Learn more about senior travel trends and the importance of spending wisely and being financially savvy while preparing for travel (and while traveling!).

Senior Travel Trends

An online survey from the AARP found that more Boomers planned to travel in 2019 than in past years, both domestically and abroad. If that pattern continues, then 2020 will see more Boomers traveling than ever before. Boomers reported that they planned to spend over $6,600 on travel in 2019, about 35 percent more than they spent in 2018. This means even higher spend in 2020 and beyond.

Top international destinations for Boomers include Europe, the Caribbean, and Asia and the Middle East. Top domestic destinations are unchanged from 2018 and include Florida, California, New York, Texas, and Las Vegas.

The survey also found that work, health, and money were the top three barriers to travel. Forty percent of respondents said that cost kept them at home and 32 percent of Boomers said health issues and concerns kept them from traveling.

Overconfidence Leads to Travel Scams

Spending too much in retirement is putting some American families in financial duress and can also make senior travelers a prime target of travel scams, fraud and identity theft. The unfortunate truth is that the threat of travel scams is real and impactful. In fact, travelers lost $67.7 million is travel related scams in 2018 alone, the highest reported loss in 5 years.

The amount of money that Boomers spend on travel makes them a prime target for travel and financial scams but another recent AARP survey shows that many older travelers are not concerned about being scammed, especially compared to younger travelers. This could be a huge financial mistake for seniors saving for retirement or who are retired and have a limited income.

According to the survey, only 26 percent of Boomers surveyed said they were concerned about being scammed while booking travel even though fraud can easily occur when booking. Travelers who are not wary of these scams can fall prey to fake booking websites, booking a rental property that does not actually exist, or even fall victim to a cold caller offering up a ‘free vacation’ that is far from free. During travel, only 20 percent of seniors 50 and older reported being concerned about being scammed.

With travel costs being cited as the number one reason people do not travel, it is important to protect finances when scheduling travel and en route to your destination. Avoid third-party discount travel scams, realize there is no such thing as a ‘free’ vacation, and use trusted websites to book rental homes.

If traveling is part of your dream retirement, contact a fiduciary financial advisor who can help you conduct a financial assessment and create a strategy to ensure your finances allow you to travel safely and without falling prey to travel scams.

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