Shortage of homes for elderly a concern

‘Life rights’ an answer to accommodation worries

THE DEARTH of affordable retirement options is a growing concern in South Africa, with increasing numbers of elderly people finding themselves with nowhere to go.

Developers are wising up and are fast developing retirement estates and villages, but there are still not enough homes for the growing numbers who need them.

And most retirees cannot afford the majority of homes available.

Based on the results of the most recent census, Stats SA’s Profile of Older Persons in South Africa report stated the number of people 60 and older had increased relative to those under 59 between 1996 and 2011.

“The number has increased from 2.8 million in 1996 to 4.1m in 2011, and the proportions from 7.1% in 1996 to 8% in 2011. Projections show the older population will continue to increase and by 2030 there will be approximately 7m elderly people in South Africa.”

The report also said the distribution of older people had a number of implications for resources and funds available within each province to meet their needs. More than half of the elderly lived in extended households.

“The dominance of elderly persons living in extended households reflects the fundamental role family support continues to play in ensuring the needs of the elderly persons are met.”

There are several reasons for the country’s historical and current shortage of retirement accommodation, says Arthur Case, chief executive of Evergreen Lifestyle, a national provider of retirement homes in South Africa and a division of the Amdec Group.

One is that the state has not focused on providing accommodation for poorer older people. And both life expectancy and the cohort of older people have increased in recent years.

“According to the Institute for Health Metrics and Evaluation, people are living longer throughout the world, thanks in part to lower rates of cardiovascular disease deaths in high-income countries and child deaths in low-income countries.

“Stats SA figures reflect an increase in life expectancy among South Africans m 55.2 in 2002 to 62.4 in 2016.”

Case says it is expected the elderly cohort will double in size by 2050, when it will then make up more than 15% of South Africa’s population.

“For many people from middle-income groups, the purchase of a home for their retirement years has been difficult financially. However, since the introduction of the ‘life right’ concept in South Africa, a few developers of retirement accommodation, such as Evergreen Lifestyle, have begun constructing retirement lifestyle villages based on the concept, so homes are becoming more accessible to a larger group of retirees.”

Alwina Muggeridge, an area principal for Pam Golding Properties, explains the principle. Despite the reference to the buying and selling of units, people do not buy actual real estate. What they buy is the right to live in a specific unit for the rest of their life.

“Ownership of the unit is retained by the development and is not transferred to the individual as with sectional title.The property itself does not become an asset in the purchaser’s estate and therefore cannot be bequeathed to an heir in their will.”

Muggeridge says the price of the purchase is a market-related and pre-determined amount.

“That purchase price is often viewed as a lifetime rental paid in advance.”

People can get a loan to buy a life right unit, although banks are hesitant to provide finance due to the lack of security.

“A comforting factor for the families of retirees is that most retirement centres provide opportunities for social interaction with amenities such as heated swimming pools, gyms, lounges and TV rooms, and also makes provision for private space in the gardens, balconies and libraries.”

Muggeridge says families can have peace of mind knowing that if the elderly relative encounters problems, health or otherwise, there will be staff on hand to look after them.

Case says the introduction of the life right model has provided the impetus for the development of more retirement units.

PICTURE: EVERGREEN LIFESTYLE Many retirement villages in South Africa allow for the purchasing of properties based on the ‘life right’ concept.

Benefits of having your parents live in your home include helping with child care and transporting your children to activities.