The Australian Seniors Series: Grey Gap Year Report 2025

• Nearly 2 in 5 (39%) Australian seniors had their last 'big' holiday in the past year – a significant jump from less than 1 in 5 (18%) in 2022
• Nearly 2 in 3 (64%) feel comfortable using their retirement savings for travel
• More than 2 in 5 (43%) seniors believe creating travel memories is more important than leaving a financial inheritance

How are Australian seniors travelling in 2025?

For many of us, navigating our later years means retirement is no longer just about quiet contemplation; it's a vibrant chapter dedicated to adventure, exploration, and making up for lost time. This shift, particularly among Australian seniors, has seen retirement increasingly shaped into a 'grey gap year', where travel becomes a central pillar of a fulfilling life. But what does this look like in Australia in 2025 – and what drives these wanderlust-filled golden years?

The Grey Gap Year Report 2025, part of the Australian Seniors Research Series, delves into the travel trends and aspirations that matter most to our community. Building on insights from the Travel Trends Report 2022, the Grey Gap Year Report 2025 continues our exploration of how Australian seniors are embracing travel in retirement. Surveying more than 1,200 Australians aged 50 and over, this report offers a comprehensive overview of the key factors influencing travel decisions and shifting behaviours, priorities, and aspirations in 2025. From preferred destinations and budgeting strategies to safety concerns and the growing trend of legacy travel, the report uncovers the realities, motivations, and evolving travel landscape for seniors.

The rise of the Grey Gap Year among Aussie seniors

Australian seniors are more engaged in travel than ever before. Nearly 2 in 5 (39%) had their last 'big' holiday in the past year – a significant jump from less than 1 in 5 (18%) in 2022. This surge in exploration signals a strong post-pandemic desire to travel, both domestically and internationally.

Top travel destinations for retirees

When it comes to destinations, Europe remains a clear favourite for both upcoming and dream holidays (22% for next, 31% for dream), followed by interstate travel (21% for next, 11% for dream) and the Pacific Islands (13% for next, 11% for dream). Interestingly, plans for domestic travel within Australia have dropped slightly since 2022 (from 48% to 32% for the next ‘big’ holiday), suggesting a renewed appetite for overseas adventures.

Key travel trends in 2025

While traditional holidays like cruises (up to 29% from 22% in 2022) and beach escapes (29%) remain popular, there’s growing interest in 'slow travel' and 'JOMO' (Joy of Missing Out) trips. About 1 in 3 (33%) have tried slow travel, and 1 in 10 (10%) have experienced JOMO trips – often driven by a desire to relax, unwind, and connect more deeply with destinations. Solo travel is also on the rise, with nearly 1 in 2 (45%) open to or having tried it – often to visit family or simply enjoy solitude.

Travel barriers for older Australians

However, travel isn't without its considerations. Financial constraints (62%), health concerns (35%), and home responsibilities (35%) remain the primary barriers to extended travel. In addition, 3 in 4 (75%) are actively avoiding certain regions due to concerns like terrorism (Middle East, 58%), ongoing conflicts (Eastern Europe, 51%), or high crime (Central America, 45%). Even the USA is being avoided by almost half (44%) due to concerns around visa policies. This highlights that safety and security (50%) are as crucial as cost (56%) and climate (45%) when choosing a destination.

Budgeting for retirement travel

Our desire to travel is strong, so many are making it a financial priority. A chance to relax (60%), enjoy quality time with family (45%), and learn about the world (44%) are the top motivations for holidaying. To fund these experiences, the majority (81%) are willing to cut back on other expenses, including impulse purchases (54%) and dining out (53%).

Cost pressures are undeniable, with about 9 in 10 (90%) agreeing that holidays are getting more expensive. This has led almost 3 in 4 (71%) to adjust their travel plans – with many taking fewer trips (20%) or choosing more budget-friendly destinations (18%) to save money. Despite this, nearly 2 in 3 (64%) feel comfortable using their retirement savings for travel, and a significant majority (68%) rely on savings as their primary funding source. Only a small percentage (19%) have delayed or would consider delaying retirement to afford travel – indicating a proactive approach to budgeting.

Safety and travel insurance for seniors

As seniors embrace more extensive travel, safety and peace of mind remain paramount. Almost 3 in 4 (72%) typically take out travel insurance when going overseas, with nearly half (48%) opting for comprehensive cover. This is driven by a desire for health protection, accident cover, and overall peace of mind.

However, domestic travel insurance sees much lower uptake, with nearly 3 in 5 (56%) skipping it altogether. This suggests a perceived lower risk for local trips, although it's worth noting the number not taking out any international cover has increased since 2022 (from 12% to 20%).

The rise of multigenerational and legacy travel

A growing trend among seniors is multigenerational travel, with about 2 in 5 (40%) frequently or occasionally travelling with family members of different generations. The top motivations are spending quality time (61%) and creating shared memories (41%).

This emphasis on experiences over material wealth is further highlighted by the fact that almost half (43%) believe creating travel memories is more important than leaving a financial inheritance, while another 2 in 5 (40%) see both as equally important. Almost 1 in 3 (27%) would even consider gifting a family trip in place of some or all of their financial inheritance.

The ‘spending the kids’ inheritance’ trend is largely guilt-free, with more than 2 in 3 (69%) feeling no guilt about spending money on travel that might otherwise go to inheritance. This sentiment is particularly strong among older generations (81% of the Silent Generation). Furthermore, more than 2 in 3 (67%) feel their family supports the decision to spend on travel – indicating a broader shift towards valuing shared experiences.

The Grey Gap Year Report 2025 paints a vibrant picture of Australian seniors embracing travel with enthusiasm, strategic planning, and a clear focus on enriching experiences. From navigating global complexities to redefining legacies, we are charting a new course for retirement – proving that our golden years are truly for exploring the world.

Stay tuned for the next chapter of the Australian Seniors Series.