Most retirees want to travel, but aren't considering affordability. A look at 5 top destinations and how to fund them

However, the cost remains a big obstacle for older adults to overcome. Homeowners aged 62 and over are sitting on a record $14.66 trillion in housing wealth, according to the National Reverse Mortgage Lenders Association index for the third quarter of 2025 (2). Yet, most failed to connect that asset to their travel budget.

Forty-five percent of retirees say their overall expenses are higher than anticipated, according to both AARP and the 2025 Employee Benefit Research Institute’s Retirement Confidence Survey (3). Those numbers hit harder for those who dreamed of traveling more freely but failed to save for it.

The flight path from home equity to a plane ticket isn't always easy. But for retirees who think strategically about their largest asset, it can become a reality.

5 destinations where the dollar stretches

The secret to traveling successfully in retirement comes down to the right destination. A week in Chiang Mai, Thailand, costs a fraction of what it does in Paris. That means the gap between your current budget and your travel goal may be smaller than you think.

Here are five destinations where retiree dollars go the furthest.

1. Lisbon, Portugal, is great for retirees on a budget. It’s a more affordable way to get a taste of Europe (4). Most hotels run from $80 to $120 a night. Local meals cost as little as $5 to $15, and museums offer 20% senior discounts. Daily expenses can run between $50 to $90 per person, excluding airfare. Finally, you don’t require a visa to stay anywhere for up to 90 days.

2. Asheville, North Carolina, is a domestic, Blue Ridge Mountain town with farm-to-table dining around $10 to $15, free access to the Botanical Gardens and daily costs of $60 to $90 a person. September through November brings lodging rates of 15% lower than summer peaks.

3. San Juan, Puerto Rico, removes the logistical friction of international travel entirely. U.S. citizens need no passport, the currency is the same, and flights are often competitive with other Caribbean destinations (5). Old San Juan, El Yunque National Forest and accessible beaches make it affordable, especially with the best prices in May and fall shoulder season.

4. George Town, Malaysia, is a foodie's dream, with world-renowned and affordable street food throughout. It offers warm weather and historic attractions. The city's small, easy layout also offers plenty of sights for those seeking a relaxed pace.

5. Belize City, Belize, offers a variety of low-cost experiences — from ruins and rainforests to beaches, fishing and snorkeling. Seniors can get discounts on riverboat cruises and zoo tours. Expect to pay about $80 to $120 per night at an Eco-lodge, and $3 to $10 for meals.

Financial moves that actually fund trips

The right home equity strategy depends on where you’re going and how much rejigging you're willing to do.

1. Downsizing: Trading a larger home for a smaller one reduces mortgage costs, property taxes, insurance and maintenance — permanently freeing up monthly cash flow. This is a move that makes extended trips to Lisbon or George Town possible.

Vanguard estimates that baby boomers who unlock home equity could increase retirement readiness by 20%, with 60% set up to maintain their lifestyle compared with 40% without it (6).

"Home equity, if used wisely to fund retirement, can make a meaningful difference," Kelly Hahn, Vanguard's head of retirement research, said. "It's often the largest asset people have."

2. Subletting: For retirees who don't want to move, subletting a spare room or unit through short-term rental can generate supplemental income.

An extra hundred dollars a month can get you to Asheville or San Juan, giving your wallet a rest.

3. Relocating: Moving to a lower cost-of-living area is a sound strategy. It can free up thousands of dollars per month, making frequent travel the norm rather than the exception.