Why Living On A Cruise Ship May Actually Stretch Your Budget During Retirement

The life of Sharon Lane sounds too good to be true: At 77, the retired teacher stepped aboard a cruise ship and entered her cabin. The day was June 15, 2025, and for the next 15 years, Lane planned to live right here, on the Villa Vie, a luxury cruise ship. Unlike other ships, the Villa Vie is a kind of floating retirement community, where people like Lane can sail into their golden years, enjoying restaurant meals and exotic ports well into their 90s. The California native had already experienced a traditional, land-based residential community; now, the time had come to set sail and see the world.

At first, such a lifestyle might sound decadent and bizarre, but actually makes a lot of sense. Many seniors have saved their entire lives in the hopes of traveling more, and by the time they reach their 70s, they may seek out comfort and assistance that wasn't so necessary in their younger years. Cruise ships and nursing homes have a lot in common; they provide functional lodging, regular meals, lots of activities, and diverse company. These people don't require home offices or spare bedrooms, nor do they necessarily feel like cooking or cleaning, after decades of domestic tasks. Most cruise ships are ADA compliant, and staff are trained to accommodate challenges and disabilities. Why not tour the world while you're at it?

There are certainly long itineraries out there, like these 11 around-the-world cruises for an epic getaway, but folks like Lane actually buy their berths. The ship has become her address. And from a financial perspective, she may actually be saving money.

How could a luxury cruise qualify as a smart retirement decision? Market Watch crunches the numbers: The price for a retirement home in the US can easily exceed $100,000 per year, and sums can skyrocket from there. In the case of Villa Vie Residences, which started operations in 2023, a cabin may cost as little as $129,000, plus $48,000 in annual fees. Granted, an interior cabin at this price point won't have windows, which many retirees wouldn't be able to handle; better accommodations get far costlier.

But it's important to note that $129,000 is the full cost of the cabin. You're essentially buying a small condo on the ship, except that you'd be hard-pressed to find a regular condo in a desirable part of the US for so little. Lane pays a monthly fee of $4,000, which certainly adds up over time; then again, a comfortable US retirement is almost always expensive, and passengers aboard Villa Vie have access to onboard medical staff — something they likely wouldn't enjoy if they're attempting to live on their own. Cabins can also accommodate two occupants, so couples can combine their assets to make the journey even more economical.

Villa Vie is an unusual case, as it's designed specifically for long-term passengers. But some retirees are making this lifestyle work on regular cruises, like Jo Johnston, a perma-cruiser who is now in her 70s and strings together multi-month voyages for about $100,000 per year. If you're already, say, browsing the ultimate guide to the best Caribbean islands for retiring, this kind of perpetual voyage may sound enticing.

This kind of nautical life won't work for everybody. For starters, only about half of Americans even have retirement accounts, much less $4,000 per month to spend on cruising fees. The average retirement age for US workers is in their sixties, and plenty of people are too tired or cozy at that age to consider never-ending overseas travel. Committed couples must be on the same page to embark on something so ambitious; they have to accept being far away from family and friends, which can be hard for involved parents and grandparents.

Then there's shipboard life, which has drawbacks. If you don't like your fellow passengers, there's nowhere to go. Cabins may feel claustrophobic, as can the whole ship. Storms and rocky seas are inevitable, and even the most avid cruiser may yearn for a consistent view and an occasional home-cooked meal. Hopping from port to port may not be ideal for folks with serious mobility issues and cognitive decline, no matter how top-notch the service. Then, to play pure devil's advocate, there are the 15 reasons you should never take a cruise at all.

For life-long adventurers, though, a cruise ship is a great alternative to bingo and crafts in a dull multi-purpose room. There's no "right" way to retire, and golden-year cruisers may feel rejuvenated each day as they chase the horizon. One thing seems clear: If Villa Vie proves a success, we can expect more operations like it in the future.