Is Living on a Cruise Ship Really Cheaper Than a Retirement Home?

A retired couple from Australia recently made headlines because of their unique retirement living situation. Instead of opting for a condo in a 55-and-over community, a room in a senior living community, or any other traditional option, they have chosen to spend their retirement at sea -- or at least, more than two years of it.

Marty and Jess Ansen booked 51 back-to-back Princess Cruises, all on the same ship, starting in June 2022. The cruises add up to 795 days at sea, which translates to just under two years and two months. When asked why they chose to do this, the Ansens cited the ease of life and the affordability of cruising compared to living in a nursing home.

Is living on a cruise ship truly cheaper than investing for the future and planning to live in a retirement community or nursing home? Let's take a closer look.

Cruise lines are embracing the life-at-sea retirement

While booking back-to-back cruises for an extended period of time like the Ansens did is certainly an option, several cruise lines have started offering longer cruises to accommodate people who would rather spend their golden years at sea.

For example, the longest cruise ever offered by Royal Caribbean is about to set sail in December. The Ultimate World Cruise will take passengers to ports on all seven continents over a 274-night journey, and it includes airfare to and from the ship, the deluxe beverage package for the duration, seven shore excursions, complimentary laundry service, and internet service to keep in touch with loved ones. And like all cruises, meals and daily housekeeping are included as well. Cruise fares start at $58,499 and $74,654 per person for ocean view and balcony staterooms, respectively.

There are more economical options as well. A company called Life at Sea Cruises offers a three-year voyage that visits 375 ports in 135 countries with rooms starting at $29,999 per year, per person.

How much does a retirement home cost?

The costs of retirement living varies considerably by the type of living situation, as well as the geographic location.

For starters, the median cost of a room in an assisted living facility is $4,774 per month ($57,288 per year) in the United States. But in some states, the cost can easily exceed $80,000.

Additionally, assisted living assumes a reasonable level of independence. For those who might need closer medical attention, a private room in a nursing home costs a little over $9,000 per month on average, and can exceed $15,000 per month in areas with high costs of living.

Is living on a cruise ship really cheaper?

The short answer is "it depends." As you can see from just the two examples discussed earlier, cruise prices can vary considerably, and that's especially true if you're booking many shorter back-to-back cruises. There are big differences in cost between cruise lines, types of staterooms, and other services, and it's certainly possible to spend quite a bit of money on board as anyone who has cruised can tell you. Plus, there are big differences in the costs of retirement homes, depending on the level of assisted living needed, geographic location, and other factors. Run the numbers for your area and see if they make sense for you.

In many cases, it is entirely possible for budget-conscious retirees to save money by living at sea.

Caveats to keep in mind

The bottom line is that in some cases, spending an extended amount of time on a cruise ship can be more cost effective -- as well as more enjoyable -- than a nursing home or retirement community. But it isn't for everyone.

For one thing, spending an extended period of time on a cruise ship is likely only practical if you're in reasonably good health. Typically, by the time you need a full-service nursing home, you're not healthy enough to travel for months (or years) at a time -- plus the cost of medical care can be astronomically high on a cruise ship or in foreign ports in the event of an emergency.

Having said that, cruising for long periods of time has emerged as a viable alternative to traditional retirement living for many people who have enough in savings to make it happen.