There’s nothing quite like a vacation to help you reset and find peace of mind away from the workplace for a week or two. That’s why it’s unfortunate that—according to Pew Research1—46% of U.S. workers don’t use their allotment of vacation days each year.
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Balancing vacation spending & saving for retirement
What’s in this article?
When it comes to planning for and taking a vacation, it is important to balance the short-term costs of a vacation and your longer-term saving and retirement goals.
Keep the following Dos & Don’ts in mind when you are planning your next time off:
Do take a vacation.
Taking time off from work and going on vacation is an important way many Americans recharge and destress. While some may consider working non-stop a badge of honor, the lowered stress rates and increase in sleep rates (in quality & quantity) that come from taking time off can have a real and positive impact on your work focus and creativity once you head back into the office.2 Studies show that taking a vacation every 2 years instead of every 6 years can help lessen the risk of heart attack or coronary artery disease.3
Don’t stop your contributions to pay for that vacation.
Like much in life, picking your next vacation is all about balance. When it comes to paying for your next vacation, decreasing or pausing contributions to your retirement plan will throw this balance out of whack and sacrifice the long-term for the short-term. Instead, plan ahead and build up a vacation fund. This will help you go on your next trip without negatively affecting your long-term saving goals.
Get help with retirement planning and saving when you need it.
In an hour or less, we can review your account and goals for retirement and discuss potential changes that you can make to help you meet these goals. All you’ll need in advance of the meeting is making sure you can log into your online account. We can meet in person, over the phone or online in a chat session.
Do be flexible while planning for a vacation.
Flexibility when it comes to location and timing can help you find and book better rates for hotels and flights. Not being locked into having to travel to one specific location at one specific time can help you discover deals and open up new and exciting destinations that you may not have previously considered.
Don’t ignore travel insurance.
There’s no better way to protect that “dream” vacation and help mitigate potential travel disasters than purchasing a travel insurance policy.
Expect to pay 4% to 8% of your overall trip cost toward travel insurance, according to a 2023 study by the U.S. Travel Insurance Association. 4
Do have a budget framework in mind.
Know before you go! The average family of four will spend approximately $6,000 for a week-long stay at a Disney property.5 Having a realistic understanding of the costs associated with your vacation (including understanding the effect of foreign exchange rates) before you go will help you decide if taking this vacation makes sense now.
Get tips for creating a household budget
Don’t overspend, plan a vacation budget.
Nothing can ruin a vacation faster than being maniacal about watching what you spend, so it’s smart to build some wiggle room into your spending plans—remember it’s all about finding that right balance between saving and spending. Having a budget framework and sticking to it as much as possible can help you avoid the trap of working the rest of the year to pay off the credit card debt you accrued while on vacation.
Factor in your vacation budget to your overall expenses.Opens pdf
Enjoy a “staycation” while you are saving for a dream vacation.
If you aren’t ready to take that big vacation this year, you can still recharge and relax with a “staycation”.
A few tips can help make your time off at home a more memorable one:
1. Develop a plan for your staycation.
Some will find it easier than others to relax while staying at home. To help you balance the projects around the house with activities that will help you unwind, plan out how you’ll you do a mix of both over your time away from work.
2. Take a vacation of the mind.
Explore a local museum, get a library card, or go see a play. While you may not be traveling anywhere, you can still use your time off to recharge and take yourself out of your day-to-day. You will be surprised at how a trip to a museum, reading a great book, catching up on some great shows or films or movies you have missed, or seeing a play can give you new perspective.
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3. Enjoy local spas & relaxation centers.
You may be surprised how a few hours getting a massage at a spa close to your home can help you feel recharged and relaxed. Or you may want to try yoga as a new way to center yourself.
4. Discover new cuisine and experiences close to home.
A great way to experience new cultures is through cuisine. Do a quick online search for restaurants out of your usual go-to places and give one or two a try to expand your palate and mind. You may even discover that you love Himalayan food.
Additional resources
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Professional support
Work with a professional to create your unique retirement plan. In an hour or less, we can review your account and goals for retirement and discuss potential changes that you can make to help you meet these goals. We can meet in person, over the phone or online in a chat session.
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TIAA’s commitment to digital, and how we’re leveraging the latest technologies in our online and mobile tools to help you save time and achieve financial success while you’re on-the-go.