FINDING THE RIGHT RETIREMENT VILLAGE

THE BEST ADVICE FOR YOUR TWILIGHT YEARS

We’ve all seen the ads on TV and in magazines of happylooking seniors enjoying a game of lawn bowls in their retirement village.

It looks like a great way to spend your golden years if you want to spend less time looking after your house and yard. And because you are surrounded by people your own age, there’s no chance of music blaring from next door at 1am.

Some villages may offer serviced apartments where meals, laundry and cleaning are provided for a fee, and you can also use government-subsidised home care packages and services.

Sounds good? It can be. But you must understand there are four main types of fees that you face – pre-entry, entry, ongoing and exit.

The fees may depend on the contract type and the specific details of that contract. Remember, the government does not regulate the fees or control how much the village operator can charge and does not subsidise your costs.

You need to be able to afford the costs on your own and you also need to ensure that any fees or loss of capital are worthwhile as ‘an expense’ for the benefits you want to access from a retirement-village lifestyle.

Generally, paying to move into a retirement village should not be seen as an investment as it’s not unusual to get back less than you paid. You are paying for a lifestyle.

This is why it’s important to read the contracts carefully and get legal advice to make sure you understand the full fee structure. You should also seek financial advice to make sure you can afford to make the move, including whether you can afford to then move out when needed.

If you run out of money, you generally cannot use a reverse mortgage or other loan arrangement to access your equity.

DECIDING IF A RETIREMENT VILLAGE IS RIGHT FOR YOU

This is a very personal choice and it’s a lifestyle decision. Some people love the idea of living in a retirement community, while others don’t. You need to think about your own preferences, situation, interests, financial capacity and health.

On the plus side, you have people of a similar age group.

The facilities are usually targeted to the needs of people in the village.

Clubs and social activities are often well organised and can be low cost, thanks to the economies of scale.

Many people miss the diversification of a normal community. The sound of kids playing and life in general is often lost once you move into a village.

Equally, some villages develop cliques and factions or you may end up living next to someone you don’t like. While no different to life in the real world, village life may restrict your ability to change things.

CHECKLIST TO CONSIDER

This is a quick checklist of actions if you are thinking about moving into a retirement village:

Shop around and compare villages.

Decide on where you want to live and the style of accommodation.

List what services are important to you and what are just nice to have.

Check if the village provides access to aged care in case you need to make that move in the future.

Read the contract – and seek legal advice.

Work out how much you can spend.

Understand the fees to move in, ongoing and when you leave and decide if it is affordable.

DOING YOUR RESEARCH

Research on retirement villages might involve reviewing

documents and understanding complex concepts, but it is an important step.

There are a number of websites that you can use to do research on what retirement villages are available. Many state governments have seniors housing agencies, which may provide information and assistance in making the correct choice.

Ask the village operator lots of questions and do internet searches to broaden your understanding of retirement villages, including the traps and your rights.

Ideally, speak to existing residents of any villages you are interested in and find out what they think. Be wary of advocates put up by the village operators.

When doing your research, ask the village operator for copies of documents including:

The contract and service agreements.

A site plan and floor plans for the residences. Village rules. Accounts and budgets for the last few years as well as the most recent quarterly accounts.

Company constitution if a company contract or strata records if a strata scheme.

Details of any legal proceedings or actions involving the operator or residents in recent years including the decisions and results.

Insurance policies (including public liability) and the recent safety report.

Development consents, if still under construction.