Dreaming of crisscrossing the country in an RV during retirement or semi-retirement? You're in good company.
Social media accounts and blogs depicting life on the road during retirement have amassed huge followings, #vanlife. At the same time, RV rentals and ownership rates have grown significantly. There are now 11.2 million households that own RVs across age ranges—and almost half of RV owners are over 55. Plus, nearly 10 million more households say they plan to buy an RV within the next 5 years.1
RV travel certainly has its allure. You can bring your favorite belongings with you, avoid crowded airports, not fret about flight delays, and travel on your timeline.
"It's a very liberating experience to go where you want, when you want, and to see parts of the country you may not have had the opportunity to enjoy before," says retired commercial banker Tom O'Donnell, 64, who shares a 27-foot RV with his wife, Andrea, 59. "It gives you so much freedom to come and go as you wish and to take it at whatever pace you'd like."
If you're considering spending some—or even all—of your retirement years on wheels, here's a roadmap to get you going.
Step 1: Envision your ideal RV lifestyle
First, the fun part: Picture the ultimate experience. Do you want to RV full time or part time? Are you a rugged DIYer who can camp just about anywhere, someone who wants to stay at campgrounds with pools and pickleball courts, or a person who sees themselves at high-end RV resorts with swanky restaurants and spas?
Think through the type of amenities you'd like to have in your rig, such as a washer and dryer, flat-screen TV, satellite internet, and a solar power system, and if you'd like to drive it or tow it with a car or truck. Consider how long you'd like to stay at each destination. Do you want to remain for months or explore every few weeks?
Also, will you want to keep your existing residence—which the RV community calls your "sticks and bricks" home—or go all-in on a life on the road?
Visualizing your goals will help you as you embark on the next step in your planning journey: understanding potential costs.
Step 2: Get a solid grasp of RVing expenses
Buying a motorhome or travel trailer can be expensive. Small travel trailers can cost as little as $20,000 while luxury motorcoaches can go for $500,000 and up. Whether your RVing dream is low-key or lavish, life on the road typically comes with expenses that go well beyond purchasing your rig.
You'll have to shell out for fuel, insurance, and repairs, as well as factor in overnight lodging, internet service, and roadside assistance plans, among other potential outlays. You'll also have to cover many of the same costs that you'd have at home, such as food and entertainment.
If you keep a stationary home, as O'Donnell did with a residence in Austin, you may still need to cover certain expenses while you are on the road, including mortgage or rent, property taxes, home maintenance, and a potential home security system.
As O'Donnell notes, expenses for the Austin home "are still coming from our monthly budget."
Penny Rose, 58, who retired from her job as a forensic accountant with the FBI and now travels full time with her husband, Mike, 54, notes that many RVers are open about their expenses, which can help with planning. "There are a lot of RV YouTube channels that publish all of their costs every month," says Rose. "And that is helpful."
RV insurance can be a particularly important aspect to consider. If you live in your RV for more than 6 months out of the year, it's considered your permanent residence. Typically, a higher level of insurance coverage is required in that case. If anything happens to your RV, loss of use coverage can cover the costs of staying in a motel and the cost of repairs. Understanding the differences between replacement value and actual cash value coverage can be important too. If your rig qualifies for replacement value coverage, your insurance may pay for the full cost of a new RV if disaster strikes. Older models may not qualify, but you can get actual cash value coverage, which can reimburse the cash value of your RV.2
Step 3: Understand the nuances of RV life
Thanks to modern advances, RV life is easier than ever.
There are countless RV-specific apps that will help with navigation, budgeting, and finding the nearest overnight parking options. Solar power and readily available internet in most areas let RVers enjoy air conditioning and streaming entertainment services, even when off the beaten path. Those who run low on supplies like toothpaste, soap, or cereal can order them from online retailers that will deliver packages right to their rig's door.
But that doesn't mean there aren't any inconveniences. For instance, driving or towing a rig can be tough.
"It's rather challenging to pull the RV with our pickup truck, even though we meet all the specifications," says Rose, who notes that her husband does most of the driving.
"Backing up is a bit of an art that you have to learn," says O'Donnell, adding that Andrea, who has more experience managing large vehicles, is their main driver.
RVers also need to take on tasks such as emptying the septic tank, monitoring water and propane levels, checking tire pressure, and tightening up screws that can come loose from all the shimmying and shaking while on the road.
If you plan to travel with a companion, you'll also have to consider what it'll be like to spend a good amount of time together in a small space. If you plan to do any work, Rose—who considers herself semi-retired and runs a business as a CFO for content creators and coaches—says it's important to "think ahead about how you're going to work in a very small space without a dedicated office."
Your best bet: Try out RVing if you don't have extensive experience in this area. Head out on an extended trip with an RVing friend or family member or look into renting one. Before you take the wheel to drive or tow a rig, be sure that you understand the responsibilities and are comfortable handling the vehicle.
Rose and her husband got a good taste of the lifestyle when they took a 2-week vacation from work to drive an RV from Jacksonville, Florida, to Dallas. They then sold their house and remained stationary in a 32-foot-long RV for 2 years before retiring.
"We were committed to trying it out," Rose says. "We knew if we didn't like it, we could always sell the RV and move back into a house or an apartment."
Step 4: Affording RV life and retirement
This is where the rubber meets the road. Now that you've done your homework, it's time to revisit your dream plan and potentially fine-tune it based on what you've learned.
Review potential expenses against your retirement income sources. A financial professional can provide valuable assistance here. You may need to thoroughly explore the lifestyle to really understand what your expenses could be.
Read Viewpoints: 3 keys to your retirement income plans
While you may need to adjust your RVing goals, keep in mind that there are creative ways to embrace the lifestyle while keeping your finances in check. For instance, you can opt for a less expensive rig, more affordable overnight lodging, or stay at locations longer to save on gas.
You can even follow Rose and her husband's downsizing move to save enough money to fund your RVing retirement dreams.
"Had we not gone into an RV and stayed in our house, we more than likely would still be at work right now," she says. "Once we sold our house, we had enough cash to purchase an RV lot inside an RV country club. The prices were very reasonable. We paid less than $50,000 because, basically, you're buying a driveway."
The couple went from paying a mortgage, insurance, and taxes at a home that was valued around $300,000 to paying those expenses for a lot at a fraction of the cost. Their RV community has a golf course, tennis courts, pools, fitness facilities, and clubhouses.
When not in Jacksonville, they don't have to worry about home maintenance costs, since there is no physical structure. On top of that, they make money on the lot when they are away. "In January, February, and March, we rent it to other people," Rose says.