Travel in 2020
A recent study revealed that young
adults are more interested in spending money on experiences rather than material
goods. In the study, 43 percent of respondents reported compromising on their
daily expenses to save money for travel. One of the positive effects of
globalization is young people have greater exposure to different cultures in
different parts of the world and want to learn more about them.1
However, travel isn’t just for the
young. Retirees have long enjoyed the pleasure of seeing the world once they
stop working and have more time. If we can help you create a retirement income
strategy and develop more confidence about saving and budgeting for retirement
travel, please give us a call.
If you’re planning on flying later
in the year, be advised that the Department of Homeland Security will require
travelers to show a Real ID to fly within the United States starting Oct. 1. Many
states now issue a Real ID-compliant driver’s license. Other acceptable forms
of identification include a state-issued enhanced driver’s license, valid
passport or U.S. military ID.2
If you plan to travel abroad,
consider registering for a Smart Traveler Enrollment Program (STEP) online
account with the U.S. State Department. Your personal information and travel
plans will be enrolled with the nearest U.S. Embassy or Consulate while you are
out of the country. Either entity can provide information about safety
conditions in your destination country, contact you in an emergency, and help
family and friends get in touch with you in an emergency situation. You can
register at https://step.state.gov.3
The annual Berkshire Hathaway
Travel Protection study revealed that the safest place to travel is Australia
(this study was likely conducted before the recent bush fires). Other top
safety destinations include Sweden, New Zealand, Italy, the Netherlands and
France.4
In terms of airlines,
AirlineRatings.com selected Quantas as the world’s safest airline for 2020; it
is also the world’s oldest continuously operating airline (99 years). Second-
and third-place spots were claimed by Air New Zealand and EVA (Evergreen
Airways), which is based in Taiwan and has a “spotless safety record.”5
Moving forward, industry experts say the newfound interest
in travel has created new challenges, as well as innovative solutions.
According to the World Economic Forum, international air arrivals are expected
to increase 50% between 2016 and 2030. However, the world’s airports do not
have the capacity to handle this level of growth. One way to process flyers
more quickly is a new test pilot program called Known Traveller Digital
Identity (KTDI). This process enables travelers to fly without a passport
between international destinations using only their mobile phone for identification
purposes. Biometric technology, such as fingerprinting and facial recognition, will
be utilized to move passengers along in faster transit lines.6
Content prepared by Kara Stefan
Communications.
1 Kris Naudts. World Economic Forum. June 24, 2019. “How
curiosity and globalization are driving a new approach to travel.” https://www.weforum.org/agenda/2019/06/curiosity-globalization-driving-new-approach-to-travel. Accessed Jan. 3, 2020.
2 DHS. Oct. 1, 2019. “DHS Reminds Travelers that
Deadline for REAL ID Compliance is One Year Away.” https://www.dhs.gov/news/2019/10/01/dhs-reminds-travelers-deadline-real-id-compliance-one-year-away. Accessed Jan. 3, 2020.
3 U.S. Department of State. 2020. “Smart Traveler Enrollment
Program.” https://step.state.gov. Accessed Jan. 3, 2020.
4 Jessica Montevago. Travelmarket Report. Jan. 3, 2020.
“Survey Says, These are the Safest Places to Travel to in 2020.” https://www.travelmarketreport.com/articles/Survey-Says-These-are-the-Safest-Places-to-Travel-to-in-2020. Accessed Jan. 3, 2020.
5 Rich Thomaselli. TravelPulse. Jan. 2, 2020. “These
Are the World’s Safest Airlines For 2020.” https://www.travelpulse.com/gallery/airlines/these-are-the-worlds-safest-airlines-for-2020.html?image=20. Accessed Jan. 3, 2020.
6 Johnny Wood. World Economic Forum. June 26, 2019. “You
might soon be travelling without a passport – this is how.” https://www.weforum.org/agenda/2019/06/you-might-soon-be-travelling-without-a-passport-this-is-how. Accessed Jan. 3, 2020.
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objectives. This material is intended to provide general information to help
you understand basic retirement income strategies and should not be construed
as financial advice.
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