What Are the Costs of Living on a Cruise Ship as a Retiree?

The first step in planning for retirement involves forming a clear vision of the lifestyle you want. Sometimes, this means moving to another location in the United States or abroad. You may choose your new home based on factors like tax-friendliness, cost and livability. However, some retirees choose a very different lifestyle. They bypass a traditional retirement to instead travel the world permanently aboard a cruise ship. However, before making this decision, there are several important financial implications to first consider.

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What Is the Cost of Retiring on a Cruise Ship?

Living on a cruise ship in retirement could be a cost-saving measure for seniors with a smaller financial nest egg.

“A cruise ship retirement has the potential to be more affordable than a standard retirement if you were comparing it to living in a retirement home or assisted living community,” says Tricia Tetreault, a financial analyst for Fit Small Business.

The total costs of living on a cruise ship are going to depend on how you choose to live, just like it does on land. For example, the cruises you book, the food plans you choose and the entertainment you sign up for will all vary by person and can greatly impact your overall costs.

You can live on a cruise ship for as little as $28,000 a year. ¹ For many retirees, this way of living is more affordable than paying off a mortgage.

There are two ways to live on a cruise ship.

• Booking cruises consecutively and moving from ship to ship
• Buying a cabin

Costs vary, depending on which way you choose.

Booking Cruises as a Retiree

The average person will spend approximately $286 per day aboard a cruise ship in 2025, according to Cruise Market Watch. ² This includes the ticket price, as well as onboard spending for food, entertainment and miscellaneous purchases.

Based on this number, the average cost of living aboard a cruise ship year-round would total a little more than $104,000 for retirees taking a nomadic approach. That means a 20-year retirement spent living on a cruise ship costs an average of over $2 million.

To put this cost in perspective, the average household headed by someone between 65 and 74 spent $59,616 in 2024. ³  Over a 20-year retirement window, this amounts to almost $1.2 million.

When you compare the numbers, cruise ship living obviously looks more expensive. That’s assuming, however, that seniors are indeed paying these average costs to live aboard a cruise ship full-time.

Buying a Permanent Cabin for Retirement

Seniors may have lower costs if they establish themselves as permanent residents aboard a cruise ship.

Several cruise lines allow travelers to purchase an apartment or condo onboard, with food and other amenities included. However, this could also be a much more expensive option, depending on the type of cabin you purchase.

Storylines, for example, is a newer cruise line offering retirees and other travelers the opportunity to purchase onboard condominiums starting at $2,152 per person per month. ⁴ The purchase price includes all meals and beverages for residents, laundry service and onboard gratuities. The cruise line also offers an onboard fresh foods market for residents who prefer to prepare their own meals.

Retirees can substantially lower the cost of living by paying cash for an all-inclusive condo, rather than financing it. You do, however, have to factor in the annual assessment fees. These fees cover items such as ship maintenance, supplies and staff salaries.

Alternatives to Buying a Cabin

An alternative to booking back-to-back cruises or buying a condo is booking long-term cruises. Oceania offers 180-day cruises around the world with fares starting at $76,199 per guest. ⁵ This fare includes meals, beverages and other amenities onboard, as well as airfare to the ship’s port. Assuming two cruises booked per year at that rate, the annual cost of retiring on a cruise ship would be $152,398.

Of course, if you decide to keep your home while living on a cruise ship, these numbers change. Even if you sell, you may have to account for other traditional expenses, such as debts you may still be paying off or storage for personal property or vehicles.

Managing Your Taxes When Living on a Cruise Ship

Spending your retirement on the high seas may lighten your budget load, but you still have to plan for taxes and insurance. This includes both federal and state income taxes, as they apply to your state of primary residence.

“As a U.S. citizen, your income is still taxable, even if you’re at sea the majority of the time,” Tetreault says.

If you’re receiving Social Security, some or all of that income may be taxable if you also have earned income from a job in retirement. Working a regular job while living aboard a cruise ship probably isn’t likely, but you may be making money from an online business.

Even if you don’t have earned income in retirement, you may draw income from tax-advantaged or taxable investment accounts. Distributions from a traditional 401(k) or IRA are subject to ordinary income tax. Meanwhile, earnings from investments in a brokerage account are subject to capital gains tax.

Even if you live on a cruise ship, you still need to file a tax return. If you don’t file at all, you could be subject to steep tax penalties.

Getting Insurance When Living on a Cruise Ship

The most important coverage when living on a cruise ship is health insurance.

At age 65, you’re eligible to apply for Medicare coverage. However, Medicare may not cover you on a cruise ship.

Generally, Medicare only applies outside the U.S. in situations where:

• Under certain laws, the doctor is allowed to provide medical services aboard the cruise ship.
• The ship is in a U.S. port or within six hours of a U.S. port when receiving services.

If you’re more than six hours away from a U.S. port, your Medicare coverage does not apply. You can maintain a private health insurance policy as a supplement, but you must read the fine print.

Be sure your coverage includes any treatment that a cruise ship’s physician may offer.

Health Care Considerations When Living on a Cruise Ship

When weighing the costs of healthcare, it’s important to think about your overall health.

Having a serious medical condition or certain risk factors for developing one, for example, could increase your healthcare costs. This applies both on and off the cruise ship.

“In the event that you have a medical emergency that requires you to be evacuated from the ship, the expense could be astronomical,” Tetreault says.

One solution is to purchase cruise travel medical insurance. This can help you manage these types of costs if they become necessary. According to online travel insurance company Squaremouth, comprehensive travel insurance typically costs an average of $539. ⁶ Cruise lines may also offer their own travel insurance, including emergency medical coverage.

Something else to keep in mind is the quality of care you receive on a cruise ship. Ships are required to maintain medical staff on-call 24/7, including at least one physician.

That’s reassuring for emergencies. However, if you have a non-life-threatening condition requiring specialized treatment, it may be more difficult to come by on the ship.

Other Considerations for Retiring on a Cruise Ship

Aside from the financial aspects of retiring on a cruise ship, there’s an emotional component to consider as well. Living on a cruise ship year-round may mean being away from your family and friends for long periods of time. Your cruise dates may coincide with major milestones, such as graduations or births, making you miss out on these important events.

It’s important to consider how to stay in regular contact with the ones you love back home. For example, you may arrange a weekly Skype call or stay in touch via email, text and online chats.

At the same time, it is also important to consider how you can expand your circle on the ship. For example, cruise ships may offer recreational activities as a way to stay active while engaging with other passengers. As you compare cruise lines, consider what opportunities for socializing are available.

Also, take into account the broader list of amenities to determine whether a cruise line offers the features that most interest you. For example, you may be looking for an on-deck walking track, gym or yoga studio so you can keep up your fitness routine. Or you may want a cruise that allows you to pamper yourself with regular spa treatments.

Research each ship’s features to ensure your choice fits your vision for retirement.

Establishing Legal Residency Without a Permanent Home

Even if you sell your house, you will still need a legal address when living on a cruise ship.

The United States requires a state of domicile for tax filing, voter registration, driver’s license renewal and access to state court systems. If you give up your home without establishing residency elsewhere, you create a gap that affects everything from where you file your tax return to whether your bank will keep your accounts open.

Full-time cruise retirees typically establish domicile in a state with no income tax, such as Florida, Texas or South Dakota. This involves more than just picking a mailing address.

States have their own criteria for establishing residency, which can include registering to vote, obtaining a driver’s license, opening a bank account in the state or filing a declaration of domicile. Florida, for example, requires that you file a sworn statement with the county clerk. Choosing a state solely for tax purposes is legitimate, but you need to actually fulfill state requirements, or you risk having the IRS challenge your domicile.

A mail forwarding service becomes essential when you don’t have a physical home. Several companies cater specifically to full-time travelers and provide street addresses rather than P.O. boxes. This matters because banks, brokerages and government agencies often reject P.O. boxes as a primary address. These services receive your mail, scan the contents and forward packages to wherever you happen to be.

For tax documents, legal notices and financial statements, this is the infrastructure that replaces your mailbox. The cost is modest, usually a few hundred dollars a year, but failing to set it up before you leave can mean missed deadlines and lost documents.

Banking and brokerage relationships need attention before you board. Some financial institutions will flag accounts or restrict online access if they detect extended activity from foreign IP addresses, which is what a cruise ship’s internet connection typically shows.

Share your plans with your bank and brokerage in advance, and confirm that your accounts will function normally while you’re at sea. It’s also worth ensuring you have backup access methods with current beneficiary designations and power of attorney documents. Otherwise, handling these issues from a ship in the middle of the ocean is significantly harder than doing it from home.

Your state of domicile also affects estate planning. Where you’re legally domiciled determines which state’s laws govern your estate, including whether your heirs face a state estate or inheritance tax. A retiree domiciled in a state with no estate tax leaves a meaningfully different financial picture for their heirs than one domiciled in a state that taxes estates above a certain threshold.

If you’re restructuring your life around cruise ship living, the domicile decision deserves the same level of consideration as the cabin’s cost.

Bottom Line

Retiring and living on a cruise ship can be an exciting and unconventional way to enjoy your golden years. It offers luxury amenities, global travel and the convenience of having everything at your fingertips. However, it’s important to carefully weigh the costs, which can include cruise fares, medical care and additional expenses like travel insurance and port fees.

Tips for Planning Your Retirement

• Planning for your retirement can be made easier by working with a financial advisor. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• If you’re still in the early stages of retirement, remember you can never start planning too early. Check SmartAsset’s retirement calculator to help you navigate the early stages and get to work preparing for your future.

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