Let’s start with a few statistics: most (84%) people want to retire close to water; most (71%) people over 40 like to take cruises, and many (40%) of those surveyed cite climate as the most important consideration in choosing a retirement location. Is there a place where we can turn these statistics into one tidy and affordable package? How about living on a converted cruise ship?

I had the opportunity to tour a "cruise ship condo". This is the concept: when you purchase one of the 100 staterooms (160 to 340 square feet), you also become a 1/100 owner of the ship. Prices range from $159,000 to $399,000 and there is also a monthly maintenance fee that entitles you to all meals on the ship, weekly housekeeping, local country club membership (golf and tennis), port fees and bus shuttles. Residents will determine the itinerary of the ship (monthly trips to the Bahamas, annual Central American and/or Caribbean cruises). The ship also offers 12 guest rooms (the staterooms that lack windows) for visitors – for free! – meals included. There will be a full-time nurse on board.

Is this type of lifestyle for everyone? The staterooms are compact, and although they may contain a microwave and/or small refrigerator, they will not have an oven or stove. So, if preparing your own meals is a passion, and you need lots of space in your residence, this won’t be the place for you. But, if you’d be happy to eat almost every meal out, are looking for a ready-made social group (the set-up would be ideal for singles), and like the idea of living on the water at an affordable price with a wonderful climate and amenities close by, and not leaving home while you do some traveling, then this is it!

Retirement Home or Cruise Ship Condo?  The average annual cost of living in an assisted living facility is over $30,000, not including the entry fee which could be over $100,000. Retirement communities which don't offer health care programs may have lower rent, but the waiting list can be long and the entry fees much higher.

Some smart seniors have invested their savings into a much more lively retirement, one 89-year old has spent the last nine years living on the luxury cruise ship RMS Queen Elizabeth 2.  In case of a medical emergency there are always physicians on board, all the food you can eat (light years better better than typical nursing home cafeteria) plus the opportunity to see the world, meet new people and have traveling companions. The cost for this particular ship is about $7,000 a month, making this retirement cost about the same, or cheaper than, many luxury retirement communities. 

by Jan Cullinane Co-author, The New Retirement: The Ultimate Guide to the Rest of Your Life (Rodale, 2007)