Life goes on? Depends on how you and your wife approach it-some mothers have a hard time dealing with their "babies" leaving. You might have to help your wife through this.
For us, it was awesome! It is even better when they get out of college and start a life on their own. We redecorated their rooms, and made the whole house ours
We love our kids, and am very happy/relieved to see them making their own way. We stay in close touch via cell phone family plans--much more so than when we fled the nest 30 years ago.
Not only is my relationship with my wife that much better not having to deal with the daily stresses caused by the kids, but our relationship with our kids is that much better as the adult to adult relationship is much more rewarding.
Congratulations!