A couple of months after retiring, Pope Benedict XVI will live in a monastery close to St. Peter's Basilica called Mater Ecclesiae. Housed here are nuns who pray for the pope. I haven't been able to confirm this, but this is an alleged picture of his future room (Source: Catholic Charismatic):
You can see this room is very simple and basic. He does not live in the lap of luxury. Probably the average person has a more luxurious bedroom than this. The reason I mention this is because so many people are critical of the Church's wealth and make it seem as though the pope, bishops, and priests, all use the riches of the Church for their own personal gain.
Here is a picture of the outside of the monastery (Source: National Geographic):