How to plan for a retirement filled with luxury travel

Ever wondered how some people seemingly manage to enjoy a life of perpetual luxury travel? Do you look at those Facebook posts from your friends that show they’re living the life of Riley and wonder ‘how?’, or get Instagram envy whenever you see yet another beautiful photograph from some far-flung destination? I talked about some ways to make luxury travel more tangible in my post 10 ways to make luxury travel more affordable, but am going to take this opportunity to delve a little deeper into the realms of financial planning and, more specifically, investing in a stocks and shares ISA such as that offered by F&C Investments so that you too can be lapping up the good life in the destination of your dreams. Anyone who enjoys travelling in style would be wise to plan for their retirement. There are a number of potential perks that go far beyond just having a free bus pass. Firstly, you have much greater flexibility when it comes to taking vacations. You’re not limited to just four weeks of the year and you can take your holidays at any time, thus avoiding peak periods when destinations are overrun by tourists and costs are at their highest. What is an ISA? OK, so you want to generate a little Facebook rivalry of your own with that once-in-a-lifetime cruise?  An ISA (Individual Savings Account) provides you with an opportunity to save money tax efficiently so you can spend more time sunning yourself on the beach and less time worrying about being taxed on your savings. And if you’re taxed less on your savings, you’ll have more to spend when you do choose to take a holiday. Save wisely early on and you could be packing your bags for that luxury getaway sooner than you think. And keep an eye on prices before you book – it’s amazing what bargains are out there, from mis-priced flights to large discounts on five star hotels that are keen to increase occupancy in the off-season. Just as with investing, planning ahead usually brings its rewards. The travel industry loves to lure people in with early bird offers so make sure you sign up to relevant mailing lists so you are among the first to receive special offer alerts. How can I translate all this into a future life of luxury travel? The more you plan ahead for the future by investing ahead of your retirement, then the greater potential return you may expect to see. Whether you’re planning a paradise island holiday in the Maldives or Mauritius or a luxury city break to Paris or New York, you’ll need to make sure your financial affairs allow for it. Whatever your aspirations, you’ll want to make sure they’re attainable with a tidy nest egg. At the same, be careful how you splurge. There’s little point in paying over the odds for business class flights on a short hop within Europe when you’re airborne for perhaps only a couple of hours. I would sooner opt for a room upgrade for our entire stay, and quite possibly still have saved enough to treat ourselves to a really special meal out on the last night of our trip. Why is it important to act now? The sooner you act and start saving, the sooner you can start to enjoy the benefits of long term investing. Also, since there is a limit on how much money you can put into an ISA each tax year (£20,000 this tax year, 6th April 2018/5th April 2019), the sooner you start then the greater the opportunity there is to take advantage of each year’s allowance.  So, think ahead now… and soon you can be picking the holiday – or holidays – of your dreams! Disclosure: This post is sponsored by F&C Investments. F&C Investments offers a range of savings plans and 10 investment trusts that are designed to help you reach your investment goals.

Paul Johnson

Paul Johnson is Editor of A Luxury Travel Blog and has worked in the travel industry for more than 30 years. He is Winner of the Innovations in Travel ‘Best Travel Influencer’ Award from WIRED magazine. In addition to other awards, the blog has also been voted “one of the world’s best travel blogs” and “best for luxury” by The Daily Telegraph.

Did you enjoy this article?

Receive similar content direct to your inbox.


  1. The best retirement sort of thing is in my opinion is to at least have something working for you and be an asset you can rely on for the future.

    This ISA thing does not sound bad and I would like to thank you for this informative post.

    1. Yes, I can guess if you can create a significant enough nest egg that you can live off the dividends without dipping into the capital, then you pretty much have retirement cracked! Problem is, human nature seems to dictate that the more you manage to put aside, then your living standards seem to go up also! ISAs are definitely a good idea (shares-based or cash) as they give you a ‘tax wrapper’ around your investment.

  2. This is the perfect way to plan for a retirement. After retirement, I also want to live a luxurious life and travel. For this, you need to invest in the thing which gives good returns on long-term.

    1. Thank you for stopping by, Tiana. If you have your health, then why stop? There is so much of the world I’d still like to see that I know I won’t be just sitting at home also. :-)

  3. Saving and financial management is so important to think of before it gets too late. It should be taught in schools! Great tips here.

    1. Hi Sarah… yes, if there was better awareness given in school, I think that would definitely be a good idea. As you say, the sooner you start putting a good plan in place, then the easier it will be to achieve your goals, and potentially the earlier you can retire.

  4. I fully agree with the earlier you save the better! I have an isa and it’s great how much you can accumulate and fairly quickly. The real fact is as well if that’s the retirement you want it’s achievable. It’s all about being realistic and saving where you can and being committed to that end goal. I hope to retire and travel I best get saving more.

    1. Yes, it’s all about compromise, I suppose. None of us know how long we have, and there’s little point in saving to the point that you drastically curtail enjoyment during your working life but, with some careful planning, there’s a happy medium to be found, I think.

  5. Trivia Fact: Did you know that if you had put the maximum investment permitted into ISAs since they were inaugurated in their current form you would now be a millionaire?

    I have friends who are intimidated by the “your investment is at risk” disclaimers but I have wiser friends who say that “biggest risk is to take no risk”. Very true in an era of steady inflation and derisory interest rates. Money is stored to wither and gather dust: Capital is invested to grow.

    Personally I’m a fan of Global ISAs. They spread the risk across many markets and highly knowledgeable fund managers are responsible for moving your funds from underperforming stocks to developing stocks.

    All you have to do is sit back and enjoy the income unless you’ve got to pack for the Seychelles!

  6. Yes, I’ve seen that piece of financial trivia too. I think it is based on the average increase in the value of the stocks (plus their dividends) in the UK’s FTSE 100. Of course if you are talking Emerging Market Funds you could be accessing significantly higher returns – or significantly lower. It all depends on how much volatility your heart can bear. Personally, I like to take some risk, spread out over the long run, in the hope of funding that dream Botswana Safari in a decade’s time.

  7. Random statistic – in 1996 I invested a stray £850 in what was then known as a PEP. As it grew up it became an ISA. I’ve just cashed it in for over £4,400. That’s a 522% increase on its initial value, way ahead of inflation and far superior to the return on any bank account.

    So why did I sell it? Gathering together funds for my daughter’s wedding. I think the guests will approve of the extra case or two of champagne that the ISA has produced.

  8. There’s a lot of scaremongering that goes on about retirement and how you need to put enough money away to save for a rainy day. I’m finding that retirement is very different.

    Since I retired I’ve started playing Walking Football. We’ve got about 35 on the database but it’s surprising to see what happens. A surprising number get offered their old job back and return on some sort of part-time basis. Financially, they are doing very nicely. Pension plus earnings but no mortgage so in fact they are actually continuing to invest in ISAs for their future. Once you’re available you would be surprised at how many jobs you get offered.

  9. An all inclusive resort might just be more affordable than a nursing home! Haha. I hadn’t considered traveling during retirement until now. I’ll have to include it in my retirement plan.

Leave a Reply

Your email address will not be published. Required fields are marked *