Generally speaking, when we use the term “sustainable,” we refer to manufactured spending and points hacking, in order to make sure we don’t kill the best deals. Trevor writes extensively about being a good steward of the community, and “treading lightly” through our hobby. However, the sustainability I wish to write about today is our ability to travel well into our golden years.
The Center for Retirement Research at Boston College National Retirement Risk Index suggests that half of today’s working families will not be able to maintain their standard of living once they retire. Additional data from the research center suggests that the Social Security trust fund will expire in 2033, with the disability insurance trust set to be exhausted in 2016. This leaves personal retirement accounts as the only sure thing left for future retirees.
Or does it? In January, Nomad Wallet cited studies by two major financial firms – HSBC and Transamerica – suggesting that one of the top priorities of retirement is traveling, but many are afraid that falling short of those goals. With the retirement picture uncertain for so many, are we sustainable to travel into retirement?
The good news is that, through proper money management and some creative spending tactics, one can still maintain mileage earnings well into retirement and beyond. This “hobby” that we all subscribe to allows us focus savings that would be reserved for travel to be adjusted to long-term retirement savings.
Both Generation X and the Millennial Generation (including Gen Y) were born and raised on the 401(k) plan, and both see the value of saving now for a long retirement. According to research done by the Transamerica Center, 84% of Gen-X participate in their Employer-Sponsored Retirement plan. And the median age that Millennials began saving for retirement was 22.
While both generations understand that 65 may not a complete target to retire, these groups will continue working because they enjoy what they do – not because they have to. By preparing for long-term stability through wealth management, there may be hope that our generation can keep traveling well into our golden years.
But with the devaluation of points, continual adjustment of sign-on bonuses, and the occasional collection of debt, there’s nothing certain about how far points will carry in the future. Plus, there’s only so much that points will pay for. You can catch the flight and stay at the hotel on points – but how will you eat and play while you’re away?
How are you saving for your retirement goals? How do you plan on financing your retirement when you’re done working? What tips do you have for other Saverocity denizens? I’d love to hear your comments on the state of retirement!
Ed. Note: The Tagging Miles Sunday Editorial is a weekly reflection of the authors opinions. Opinions expressed here are author’s alone, and do not necessarily reflect those of Saverocity.com, or any blogger in the Saverocity family of blogs. No compensation nor incentive was given to mention or link to any product or service in this article.
Its more than a hobby for some people. Not sure if its fear of looking weird or having to explain all the lux travel that prevents people from calling it more than just some side hobby.
Its a job but I think a temp one. I doubt it will be around in the form it is now by the time I retire–whatever that means lol
No disagreement that this hobby can become more. I personally consider myself a weekend warrior (and I used to do that running passenger ferries in another life). The reason I personally consider it a hobby rather than a job, is because I have more passion for it, more enjoyment while doing it, than I have had for any job. Besides, I look weird and have to explain all the lux travel all the time… But back to brass tacks. I feel like people call this a hobby because of the passion. You have a passion for doing this, rather than the “daily grind” (not to say that WM clerks don’t make it a grind occasionally).
I often think of it as a cross between a p/t job and a hobby. I am lucky that I don’t have another job. The miles/points I accumulate and the cashback I earn really do supplement our disposable income. It isn’t that we wouldn’t do the traveling we do, but it costs us significantly less now and we are doing more of it.
I went into this “game” wanting to be able to fly business class for the price of coach, but my goals have expanded to include free hotel nights, upgraded rooms, lounge access, and more trips. As a result, rather than bus class and the fanciest hotels, I usually opt for more flights and more nights.
I could ramp it up if I put my mind to it, and I certainly have since Charlotte, but I find that if I push too much, it becomes too much like an obligation and too little like an avocation. We each find the pace that suits us.
As for will it be around in retirement, I guess that depends in part of when you are planning to retire!
I tend to see it the same way you do Elaine. And in order to not let the addiction take over we do actually take off from it now and then. Not for long though…. You cant travel when you have a limited period 5x card lol
I would do less travel if it werent for much of what MS offers. I mean we figured out that a week long trip to GCM for a family of four doing all the activities and earing and drinking could cost up to $12,000. With proper MS I could get er down to maybe $1000 or even less if I plan it well. All in.