As the U.S. enters its “gray tsunami” era, where the large baby boomer generation hits retirement age, some of those boomers are choosing a new type of retirement: cruise ship life.
“I live at sea and I’m retired,” said Jo Johnston, according to CBS News. The network reported in an article published this week that Johnson has been on around six to eight cruises, all adding up to around 80 days.
More than 4 million baby boomers (a generation born after World War II, from 1946 to 1964) will turn 65 – retirement age – this year, CBS added. From 1920 to 2020, the total population over age 65 grew nearly five times faster than the total population, said the U.S. Census Bureau. By 2030, all baby boomers will be age 65, according to the bureau.
Johnston said that she sold everything that wouldn’t fit in her car – including her car – and then embarked on the cruise lifestyle. Per CBS, she gets a package of meals, travel, entertainment and housing for approximately $100,000 a year.
Recently, she traveled aboard Holland America’s “Grand World Voyage” cruise from Florida to Grand Cayman. Other destinations for Johnston include Bali, Cape Town and Barcelona. She spends lunch time with friends she’s met on cruises.
Last summer, Editor-in-Chief Cindy Richards of SheBuysTravel.com joined Audacy’s Noon Business Hour to discuss the growing trend of cruise ship retirees.
“it’s a really hot topic and you know there’s… some ways to decide whether or not it’s reasonable for you. And the first thing is to think about how much it costs you to live per day because you’re going to pay per day on a cruise ship,” Richards explained.
For example, Johnston said that it is important to track spending. She keeps track of what she spends on drinks and short excursions.
Richards said that, once retires calculate the cost of their rent or mortgage, insurance, the gas for their car, their food and drinks and any other on-land expenses, they sometimes find that cruises are actually cheaper.
“You could spend that same amount of money or maybe less, which is the real interesting piece of it, to live on a cruise ship where not only you’re going to get all that included, they're going to make your bed and clean your bathroom every day for you,” she said.
CBS reported that a residential cruise launched last fall, where customers can buy a cabin is starting at $130,000, while U.S. News and World Report said last summer that "living on a mass-market cruise ship can start at about $35,000 per year for room and board,” before other expenses. Meanwhile, SeniorLiving.com estimated this year that the cost of assisted living is $68,110 per year.
Charlie Branch, a New York-based financial advisor cited by CBS, also said that cruise ship retirements could be potentially cheaper than land-based ones. He said retirees have become more creative about their options since the COVID-19 pandemic.
Both CBS and U.S. News and World Report noted that retirees with medical risks or who might need extra medical care might want to skip the year-round cruise lifestyle. Not only do they have limited medical staff, but infectious illnesses can pop up on ships.
“Ships typically have a doctor on board who handles basic needs and emergencies, but experts recommend consulting with your primary physician to determine if it's a viable option,” said CBS. “As with any retirement plan, proper preparation is essential to ensure you have appropriate medication and care.”
Richards recommends that anyone interested in the cruise retirement life test out the waters before plunging in.
“If you’re going to retire on a cruise ship and be on it for nine months or maybe even 12 months, you want to make sure it really is what you want,” she explained. “So I would say, you know, the year before you commit, spend a month on cruise ships. And I even believe you should try a couple of different cruise lines.”