A Brilliant Hack or a Costly Mistake?

Forget images of Florida condos and Arizona golf courses—some retirees are trading traditional retirement for a permanent life at sea. But before you start packing your bags for shuffleboard, endless buffets, and permanent ocean views, you’ll need to assess the financial reality of a cruise ship retirement.

Alvin Carlos, a certified financial planner and Managing Partner at District Capital Management in Washington, DC, told Investopedia that retirees are setting sail for several reasons. “They want to see the world,” he said. For many, cruise ship retirement is also a chance to explore a world they saw too little of when they were in full-time employment. “They didn’t travel much during their working years since they lived busy lives,” he said.

With costs ranging from about $100,000 to over $200,000 annually, however, this floating lifestyle can be costly, especially with additional expenses that can break your retirement budget.

What Drives the Appeal of Cruise Ship Retirement?

The cruise lifestyle often appeals to those seeking simplicity without commitment. Those who do it “want to downsize but are unsure where they want to live yet. So living on a cruise ship for a year seems like a great break to have,” Carlos said. Instead of downsizing to a smaller home in a less expensive but unfamiliar part of the country or a retirement community, cruise ship living offers a low-commitment way to see the world.

There’s also the practical appeal of not having to worry about who’s making dinner tonight. As Carlos puts it, retirees are “attracted to an all-inclusive lifestyle. All your meals will be provided. There’s year-round entertainment. You can also meet people from all walks of life.”

No more lawn maintenance, home repairs, or grocery shopping—just choosing which off-board activities to do and which restaurant on board it will be for today.

The Real Cost Breakdown

There is a great variety of costs you can see for making the cruise life permanent. “It depends on the type of cruise and room you book,” Carlos said. “A Viking cruise can cost two to three times more than Carnival. You’ll usually get a window, plus included excursions, WiFi, and wine with meals.”

There are ways to cut costs. “If you want to go on a budget cruise line like Carnival or Holland America, with meals included, a few excursions, no WiFi, inside cabin, some access to onboard healthcare, and travel insurance, you’re probably looking at around $65,000 per year.” (Our estimate above for the budget option includes far more spending on these.)

Just like real estate on land, location is everything in terms of the onboard costs. “Inside cabins with no windows are the cheapest. Getting an oceanview or balcony cabin can be 50% more,” Carlos said. The ship’s age also matters: “Older ships will cost less, since their amenities are not that modern.”

Hidden Expenses That Catch Retirees Off Guard

Beyond the sticker price, unexpected costs can quickly inflate your budget. “You may end up spending money on things you didn’t budget for,” Carlos said. “Like drinks, onboard shopping, casino buy-ins, and a fancier meal.”

Beverage packages alone can cost $79-$100 per day for alcohol, while Wi-Fi packages average around $20 per day per device. Daily gratuities and laundry services add further costs since many ships don’t offer guest laundry facilities.

Medical expenses present another concern. Medicare, Medicaid, and many U.S. insurance companies don’t cover medical expenses outside the U.S., meaning you’ll want to have a travel insurance policy. Emergency medical evacuations from ships can cost tens of thousands of dollars.

The Bottom Line

Cruise ship retirement can offer an alluring alternative to traditional retirement—providing both travel and convenience. However, the financial commitment is substantial, with realistic annual costs starting at about $100k a year.