You’ve finally hit retirement, but you’re realizing it’s proving to be more expensive than you thought.
Lately, we’ve talked a lot about the math of moving to a foreign country to lower your cost of living. But a topic that has roared back into the conversation is retiring at sea. People want to know: Is living on a cruise ship full-time, year-round, actually a deal?
I’ll give you my perspective, but I’ll warn you upfront: The math has changed.
The “Golden Age” of Cheap Living at Sea
Back in the teens — after the Great Recession and leading up to pre-COVID — I got questions about this constantly. There was so much buzz about people saving money by living on ships.
For those of you who are long-time listeners, you might remember that my son was obsessed with cruise ships from the age of six. Because of that, we were on ships often, and we met people who were literally living on them all year long. They were booking one cruise after another and paying a fraction of what it would cost to live on land.
I once met a woman who was finishing her second full year on the same ship, in the same cabin. The crew adored her. At that time, it was costing her $40,000 a year for her housing, all her meals, and all her entertainment. It was a legitimate “hack” 10 or 15 years ago.
Why the Math Doesn’t Work Today
If you are looking at this today, you’re dealing with a totally different set of numbers.
The cruise lines survived a near-death experience during COVID. They had to take on monstrous piles of debt just to stay afloat. While some smaller lines went extinct, the major players aren’t just surviving—they are in a new “golden era.” Demand is sky-high, and as a result, so are the prices.
Here is how the cost of living at sea compares to living on land today:
The budget option: That woman I met who spent $40,000? Today, for a tiny, 120-square-foot inside cabin with no window on a budget line, you’re looking at $90,000 to $120,000 a year.
The luxury option: If you want a balcony and a higher-end experience, you are looking at $250,000 or more.
If your goal is to reduce your expenses, living on a ship is a “was,” not an “is.” It is no longer a way to save money compared to living in a modest home in the U.S., and it certainly isn’t cheaper than moving to an affordable country overseas.
The Reality Check: My Brother’s Five-Week Adventure
Even if you have the money — maybe you’re a wealthy retiree and you’re happiest at sea — you have to consider the lifestyle.
About a decade ago, my oldest brother and his wife decided they were going to live on cruise ships full-time. They went all in:
They sold their home.
They sold almost all their possessions.
They reduced their entire lives down to two storage units.
Do you know how long they lasted? Five weeks. After five weeks, they realized that the reality of ship life is very different from the idea. In fact, in the decade since that experiment ended, I don’t think they have set foot on a cruise ship.
Final Thoughts
If you have saved a lot and you truly love the ocean, go live at sea for a while. But don’t do it because you think you’re beating the system.
The days of the $40,000-a-year cruise retirement are over. Today, the cruise lines are the ones making the money — not the passengers. If you’re looking to protect your nest egg, you’re better off keeping your feet on solid ground.
The post Is Living on a Cruise Ship Still a Retirement Bargain? appeared first on Clark Howard.