Retirement village living

With 156,000 people retiring last year, retirement villages have become an increasingly popular choice for those looking to downsize. But what’s life really like in a village? This article will walk you through what to expect, so you can decide whether it’s the right fit for you.

What is a retirement village?

Simply put, a retirement village is a community designed for people aged 65 and over. It’s a place where you’ll find like-minded neighbours and shared facilities such as pools, dining areas and tennis courts, all aimed at making life accessible and more enjoyable.

Instead of buying the property outright, residents purchase a right to occupy through a long-term lease, while the operator retains the freehold title. Homes can range from apartments and townhouses to standalone houses.

The lifestyle advantage

Like-minded community – Your neighbours in a retirement village are most likely retired, which means you’ll be surrounded by people at a similar stage of life. Villages offer plenty of opportunities to stay socially connected through activities and shared spaces. And let’s be honest, social connection is one of the keys to a happy, healthy life.

Low-maintenance living – Say goodbye to mowing lawns and pulling weeds. In a retirement village, maintenance is taken care of for you, freeing up time for travel, family, friends and hobbies. As one operator put it: “If you tipped your unit upside down, we look after everything that doesn’t drop to the floor.”

Access to facilities – Modern villages are packed with amenities designed to make life enjoyable—think pools, spas, gyms, libraries, billiard rooms, and even wine cellars.

Security – Peace of mind matters. Many villages are gated and offer 24/7 security, so you can feel safe and secure in your home.

Access to health services – Emergency buzzers are standard, but that’s just the beginning. Most villages also provide access to health services through home care packages (now known as Support at Home) or consulting rooms for visiting doctors and health professionals.

Things to keep in mind

Financial outlay – Before you pack your bags, it’s important to understand the costs involved in moving into a retirement village. In addition to the upfront payment (called the ingoing contribution), you may also come across:

• General Service Charge – Think of this like a body corporate fee. It covers the day-to-day running of the village (gardens, shared spaces, staff, lighting and general upkeep).
• Sinking fund levy / maintenance reserve fund – This is your safety net for big-ticket items like refurbishing communal facilities, upgrading pathways or repairing roofs. It helps avoid nasty surprise bills.
• Exit fees – Often the biggest cost. When you leave, the operator will charge an exit fee, usually around 30%, depending on your contract. Some operators let you pay a higher upfront contribution to reduce or even eliminate this fee.
• Lack of capital growth – Most contracts exclude capital growth, so you won’t benefit from property value increases.

Less freedom, more rules – Villages often have rules around pets, visitors and home modifications. It’s all about keeping harmony, but it can feel restrictive if you’re used to doing things your way.

Community living – It has its perks, but it’s not for everyone. Adjusting to a new environment can take time.

Confusing contracts – Contracts have improved in recent years, but they can still be tricky to navigate—and legislation varies by state. Our tip? Engage a solicitor who specialises in retirement village agreements before you sign anything. It’s worth the peace of mind.

Start today for peace of mind

Although moving into retirement village is primarily a lifestyle decision rather than a financial one, it’s still essential to understand the financial side of things. At Alteris Lifestyle and Care, we make this process easier by helping you navigate the different financial considerations, providing 10-year cashflow projections, modelling for home care, and making sure you maximise any Centrelink benefits you’re entitled to.

If you’d like to discuss your options, give us a call on 1300 366 932. We’re here to help you plan with confidence.