Come sail away? These Australian grandparents booked 51 back-to-back cruises and claim retiring at sea is cheaper — but here are 3 ways to stay afloat if you want to retire on land

“It’s our lifestyle,” Jess told Australia’s A Current Affair — enthusing over the giant cruise ship’s amenities and the fun the dynamic duo have onboard. “Where else can you go where you go for dinner, you go to a show, you go dancing? Through the day, you have all these activities.”

The retired couple believe this lifestyle choice is cheaper than living in a retirement home because they have their meals included, their room cleaned daily, access to health care, lots of entertainment and endless opportunities to socialize — with the obvious bonus of sailing around the Seven Seas.

But not everyone has strong sea legs, so here are three nifty hacks to help you manage your retirement expenses (without leaving land).

Cut your housing costs

There is something to be said for the Ansen’s retirement strategy. Cruise ships offer many of the essential elements older people need to thrive — and they can cost as little as $89 per day, Tara Bruce, a consultant at Goodwin Investment Advisory Services, which helps people to retire at sea, previously told CNBC. Meanwhile the median daily cost of living in a retirement home in the U.S. is $156, according to Genworth Financial’s 2023 survey data from the National Senior Living Cost Index.

Back on U.S. soil, housing costs — including your mortgage, rent, property tax, insurance, maintenance and repair costs — are typically the largest recurring financial burden on retirees. But there are ways to relieve this financial stress.

Decluttering your home and keeping up with preventative maintenance can help stave off bigger problems that will bite into your retirement budget. You may also want to consider shopping around for cheaper home insurance or investing in smart upgrades for your home (if you plan to stay live out your retirement years there) to qualify for thousands in tax credits and rebates offered by the Biden administration’s Inflation Reduction Act.

Retirement is often considered a great time to downsize your living situation. Selling your family home and moving to a smaller house that is more suitable for your needs (and easier to clean and maintain) is a great way to boost your retirement budget. Not only will you save on property taxes, maintenance and utilities, but you could also unlock a pile of equity from selling your old place.

When you downsize, you may want to look at moving to an area with a lower cost of living so that your retirement savings will stretch further. Some of the best states for retirees — based on analysis of overall affordability, health care, quality of life, crime rates and weather — are Florida, Iowa, Virginia and Missouri.

Be prepared for health care expenses

While you might have a clean bill of health when you retire, remember that no one is immune to unexpected health emergencies — and they can get very expensive, so it’s important to do everything you can to prepare yourself and your finances.

Data shows millions of Americans don’t have an emergency fund to dip into should something go wrong with their health, car, home or family. Experts like Suze Orman say making sure you stash money away today is the only way to avoid financial ruin.

As for health insurance, Medicare benefits, or “free” health care plans, kick in when you reach 65. But remember, Medicare coverage through Part A (Hospital Insurance), Part B (Medical Insurance) and Part D (prescription drug insurance) may not cover all your medical needs, so you should plan for some out-of-pocket expenses.

It is also worth paying attention to your medication costs. Americans pay higher prices for prescription drugs than any other country in the world. Since President Joe Biden signed the Inflation Reduction Act into law last year, Medicare has been able to negotiate lower prescription drug prices for seniors, helping retirees to save millions of dollars in health care costs.