I'm sure it's true that your T has good intentions. I also agree that she didn't handle this very well, by blurting out the idea that popped into her mind rather than thinking through carefully first and then presenting you with a definite proposal. It can be very disorienting when therapists change what they are saying. I don't like it either when my T seems to donthat.

My thoughts are, would it be possible to get started with another T for therapy, and at the same time agree that you and this T will stay in touch? It seems like she truly has caring feelings towards you, but hasn't yet sorted out what she thinks she will do and not do in her retirement. However much she cares for you, she might not be able to commit to being there when you need her, if she will be going travelling for example. I think a new T would be a good support, even if it feels that they will never replace this T.