Some Retired Couples Live Cheaply on Cruise Ships — Is It Worth It?
Written by
Yaël Bizouati-Kennedy
Edited by
Amber Barkley
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Saving for retirement has proven difficult for many Americans lately, with inflation and soaring rates leaving little to put aside. In turn, only four in 10 adults report that they currently have retirement savings and only 21% say they have a retirement strategy, according to a recent New York Life survey. So it comes as no surprise that some retirees are looking for creative ways to spend their money in their golden years — and to be able to stretch their dollars further.
Take Marty and Jess Ansen, for example, an Australian couple who decided to live their retired life on the high seas, as ABC News reported. For them, this lifestyle turned out to be more affordable than moving into a retirement home.
There is also Angelyn and Richard Burk — a Seattle couple who made the same decision, telling CNN that it was cheaper than paying a mortgage. The average cost per day was $89, they said, including the price of their room, food, entertainment, transportation, tips, port fees and taxes, which is “well within our retirement budget.”
While this cruising lifestyle can be enticing, experts’ opinions vary as to whether it is sustainable.
Weigh Your Options Carefully
“Unconventional retirement options are always worth considering,” said Joe Camberato of National Business Capital. “While the idea of retiring on a cruise sounds pretty spectacular, always think long term.”
For instance, he recommended trying to rent your home for a trial period to test the waters before committing fully to the cruise experience, and have a backup plan, in case you find it less appealing over time.
“As to whether you can pay for that lifestyle, do some math, and you might be surprised at how affordable it can be when you factor in the expenses like transportation and groceries — that you would save onboard. I’ve met people who have tried this approach and loved it, but of course, weigh your options carefully,” he added.
Cheaper Than a Retirement Home
Living on a cruise ship can sometimes be cheaper than retirement homes, especially in high-cost areas.
“Retirement homes can run upward of $3,000 to $10,000 a month, depending on the level of care and location,” said Taylor Kovar, CFP, CEO and founder of Kovar Wealth Management. “In contrast, some long-term cruise deals work out to be less per day, with food, entertainment and accommodation included.”
Indeed, as AssistedLiving.org noted, the average cost of senior living varies by state and region, but expenses are going up across the board for the basics seniors need every month. Living in an independent living community can cost from $1,500 to $4,000 a month, and seniors residing in assisted living facilities have a monthly average cost ranging from $3,500 to $10,500 a month, according to AssistedLiving.org.
However, it’s essential to carefully consider the total cost of living on a cruise ship, including not only the upfront expenses but also additional costs, such as onboard purchases, excursions and medical care, some experts noted.
“While cruise ship living may appear cheaper on the surface, these hidden costs can quickly add up and impact your overall budget,” said Erika Kullberg, attorney and personal finance expert, founder of Erika.com.
That’s why Kovar also stressed the importance of looking at the fine print for these additional costs, as well as having a financial buffer for when cruising might not be possible or desirable anymore.
Don’t Forget About Medical Care — And Costs
In the end,it’s all about what you value in retirement, said Kovar — if you love traveling, meeting new people and the convenience of having your living expenses bundled into one, this could be a great fit.
Yet, it also presents some challenges, such as potentially limited access to healthcare or the feeling of being disconnected from a home base, he added.
Indeed, medical care should also be an important parameter: While cruise ships typically have a doctor and nurse or two onboard, they’re generally there for passenger emergencies and ailments, said Christian Simmons, certified educator in personal finance and financial writer with Annuity.org.
“When you’re retired, things like regular checkups, tests and physicals are key,” he said. “How are you getting that on a cruise ship?”
More From GOBankingRates
