Would it really be more affordable to retire on a cruise ship?

Your golden years are a great time to kick back, relax, and take it easy after decades of hard work. However, the idea of retiring on a cruise ship, sailing the globe, and living life on the high seas may be appealing to more adventurous retirees.

Cruise ships are back in business after the pandemic, and even if you don’t commit to permanently retiring on a cruise ship, it may be interesting to consider spending at least part of your retirement on a cruise ship.

Below, I’ll outline how much it costs to retire on a cruise ship and explain some of the pros and cons if you’re considering this drastic lifestyle change.

BENEFITS OF RETIRING ON A CRUISE SHIP

First, I’ll mention that it’s hard to compare life on land to living on a cruise ship full-time. Unlike the average rent in Canada, which is $1,984, according to the 2023 rent report by rentals.ca, cruise ship tickets can vary dramatically.

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You might catch a deal on a two-week cruise for around $700 (although your cabin would be very small for that price) and then have to turn around and pay $1,500 or more for a similar cruise for the next two-week period.

There’s also the logistical issue of having to book back-to-back cruise ship tickets constantly. If, for some reason, you aren’t able to book back-to-back arrangements with the same cruise line, you’ll need to fork over extra money for short-term lodging or a hotel while you wait for the next cruise.

You may even have to book last-minute flights (which tend to be the most expensive) to make it to the next port of departure.

Let’s just say that you figure out the logistics of retiring on a cruise ship and decide to go through with it. Here are some of the key benefits that you’d be able to take advantage of:

• Travel the world: Depending on the cruise(s) that you book, you’d have the opportunity to spend your retirement travelling to ports around the world. You may also be able to stay overnight in certain cities, allowing you to experience the region’s culture.
• All your meals are cooked: Most ships offer a complimentary buffet-style breakfast, lunch, and dinner, meaning you’ll rarely have to cook or pay for food unless you decide to pay extra for premium dining.
• Housekeeping: Your cabin will be regularly cleaned by the ship’s staff, effectively eliminating tedious house chores.
• Socialize with others: Cruise ships are full of like-minded adventurous people like yourself. Retiring on a cruise ship provides ample opportunity to make new friends.

DRAWBACKS OF RETIRING ON A CRUISE SHIP

No matter how luxurious your accommodations are, life on the high seas has its drawbacks. Here are some reasons why long-term cruise ship living may not be for you:

• Travel expenses: Between cruises, you’ll need to pay for short-term accommodations and flights between ports. These can be very costly in the long run. Cruise ship tickets can also be very costly.
• Miscellaneous expenses: Gratuities, port fees and other service charges could also add up, depending on the cruise line.
• Health care isn’t free: On cruise ships, health professionals operate as independent contractors and typically charge upfront fees. These fees may be reimbursed later, based on your personal health insurance.
• Difficult to see family: Retiring on a cruise ship means that you’ll rarely have the opportunity to see family and friends back home.
• Cramped spaces: While cruise ships are large and offer plenty of deck space, the cabins themselves are relatively small and may begin to feel claustrophobic during long journeys.

CAN YOU RETIRE ON A CRUISE SHIP?

You may be wondering if it’s even possible to retire on a cruise ship in the first place and how it would exactly work.

Do you purchase a life-long ticket? Do you purchase a long string of week-long tickets?

Most major cruise lines don’t offer life-long or long-term tickets. In fact, the longest cruise length I could find departing from Canada was a 36-day cruise from Montreal to Miami.

If you’re willing to cross the border, I did find some cruises that last for 50 days departing from New York City.

Typically, cruise tours last between 7 and 15 days. Transoceanic cruises tend to be the longest, which makes them the best choice for those who want to stay at sea for long periods of time.

Therefore, to retire on a cruise ship, you must book multiple cruises back-to-back.

Another problem is that you’ll likely need to book through multiple cruise lines, as many cruise lines are booked out months ahead of time. This makes it nearly impossible to book back-to-back cruises on the same cruise line.

If you’re a long-term planner, though, you may be able to book multiple back-to-back cruises with the same cruise line by booking them two or three years in advance.

COST OF RETIRING ON A CRUISE SHIP

Cruise ship costs can vary significantly depending on the following:

• How close to the sailing date you booked the cruise
• The cruise line you’re sailing with
• The luxury of your accommodations
• Booking directly vs booking through an agent

Two-week cruises departing from Canada can range between US$650 and $2,999 per person, based on some preliminary research on Cruises.com.

The longest-lasting cruise I could find departing from Canada was a 36-day cruise from Montreal to Miami, offered by Oceania Cruises, with costs starting at $7,559 per person.

But there’s also another option, outside North America. MV Gemini is setting sail from Istanbul on November 1 for its three-year voyage, at a cost of just over $40,000 a person a year.

Life at Sea Cruises has opened bookings for its three-year voyage on the MV Gemini, which sets sail from Istanbul on November 1, and supposedly is all-inclusive of costs such as food, drinks and Wi-Fi.

Royal Caribbean also offers a 274-day cruise, starting at $53,999 per person. 

The cost is quite expensive, though. The introductory pricing for a 25 per cent share of the RU4 Dream is $1,275,000 for the lifetime of the vessel and $37,000 for quarterly all-inclusive living fees..

For RU2 Explore, the introductory pricing for a 25 per cent share is $598,000 for the lifetime of the vessel and $26,700 for quarterly all-inclusive living fees.

With those extremely high costs, you better make sure you want to enjoy being on a cruise ship!

HOW DOES A CRUISE COMPARE TO LIFE ON LAND?

Living on a cruise line is more costly than life on land. For example, a two-week cruise can cost between $699 and $2,999, compared to the average rent of $1,984 in Canada.

Hypothetically, if you only booked the cheapest, tiniest cabin on a cruise ship, you might pay less than the average Canadian rent. However, you’d be sacrificing a 1,000-square-foot or larger apartment space for the equivalent of a tiny bedroom with a bunk bed.

IS IT ACTUALLY MORE AFFORDABLE?

The cheapest cruise that I could find lasted for two weeks and cost US$699. Multiplying that, you’d get $1,398 per month and $16,776 per year (equivalent to CDN$22,506.26).

That being said, it would be almost impossible to book ultra-cheap tickets like this back-to-back. Looking at a cruise ship booking site, many tickets are booked out months in advance. Also, prices fluctuate heavily, depending on the season and how far in advance you book the tickets.

You could also book the three-year Gemini cruise mentioned above, at a cost of around $40,000 per year, which is reasonable. I would be careful, as it’s a new offer and hasn’t been proven yet with any existing reviews.

The only reason I could see it being more affordable is if their existing home or apartment had a high rental rate. If the individual in question is paying $2,500-$3,000 per month in rent (which is significantly higher than the national average), then living on a cruise ship could be slightly cheaper.

However, this excludes the money spent on plane tickets and short-term lodging between cruise trips. If you factor in those expenses, retiring on a cruise ship is more expensive than renting a standard apartment or small home.

WHAT ABOUT HEALTH CARE?

Cruise ships have well-equipped medical facilities. However, cruise ship doctors are subcontracted or directly employed by the cruise line and must be paid for in full upfront. After the cruise trip ends, you may be able to contact your health insurance company for assistance with a portion of the bills.

If the individual has private health insurance, then they may be able to get a portion of their cruise ship medical bills paid once they get back to the mainland. It would be advisable for the individual to have coverage before booking a cruise, though.

 Passengers who become seriously injured or critically ill may need to disembark and head to a hospital at the next scheduled port of call. If the ship is not near a health-care facility, a medical evacuation may be necessary, which can get costly. If your insurance doesn’t have the appropriate coverage, you may have to pay for your hospital care out of pocket, which can also get expensive.

Seniors with pre-existing conditions should contact their insurance providers to ensure they have the coverage they require.

TRY A LONG-TERM CRUISE BEFORE YOU COMMIT

With the right planning and preparation, retiring on a cruise, or at least spending a large portion of your retirement on a cruise ship, is possible. Before you commit to purchasing a year’s worth of tickets or a 24-year lease on a residential cruise ship, though, consider trying a month-long cruise first.

This will give you a feel for the experience and help you determine if it’s the right choice for your retirement.

Christopher Liew is a CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers on his Wealth Awesome website.