I don't think he will retire just yet. I can see that he still feels like a young boxer even today and even had the guts to challenge Moloney for the WBC title. But I guess both boxers are trying to go the easy way to take the belt. Moloney dodges the fight or it's Donaire, it doesn't matter but I do believe these two will try to meet to unite the belts.
We are speculating again, of course. He will not retire, as he has not mentioned retirement yet. Though his age is considered old but the way he fights shows he still has the heart of a champion. His upcoming fight will prove the doubters wrong. It may not be against a major challenger, but a good win will always attract the attention of the crowd. Therefore, I'm optimistic that he'll win via knockout.
I cannot find news yet regarding all this "retiring thing" so yes these are all speculations for those who started it.
Perhaps we will find out about it after his fight with Alejandro Santiago so we have to be patient about it. If he wins, there's a bigger chance he will continue, in my opinion. Power makes people hunger for more so he will sit on that throne as long as he can still fight.
Recent news was only about his father training Gaballo for the WBC eliminator against Nawaphon Kaikanha and whoever wins will meet the champion.
So if Donaire wins, he will fight with Gaballo again, and this will be hot because of all the issues against his father. I doubt Donaire Jr. will just pass this up, as a way to prove to his father something, whatever their issues are. Money, leaving, an ungrateful son, against his wife.
If Donaire loses, they won't meet but the same goes for Gaballo.