LIVING in a retirement village can save you money. That’s according to a new report that has found retirement villages are more affordable than remaining in a residential home once living costs are factored in.
Too often we hear that retirement villages are very expensive with service costs and exit fees. Of course it depends if you are living in a self care unit or in aged care with nursing provided.
This can make a huge difference to costs but there are many other tangible and intangible factors to consider too.
The report’s author, retirement living and aged care specialist Lois Toward of the University of Sydney, found while the ownership costs of a house are lower, the real savings are provided through the lifestyle services included as part of retirement village living.
Ms Towart said the research was based on a like-for-like basis and compared nine retirement villages across Australia with general residential properties of a similar age, style and level of accommodation in each locality.
“This comparison was based on the financial and lifestyle components of retirement village living including entry price, ongoing costs, facilities and services, exit price and intangible factors,” she said.
Property Council of Australia executive director of retirement living Ben Myers said the report highlights the financial benefits of being in a community with health and lifestyle services at a resident’s door.
“If you live outside a retirement village and you access facilities and services like swimming pools, gymnasiums, libraries, GP clinics and social activities, this report shows you’re going to probably end up paying more than it costs to live in a retirement village,” Mr Myers said.
“Critics of retirement villages are quick to point out the cost of leaving a village but this research shows the cost of living should be measured much more broadly than by just looking at exit costs.
“Retirement villages offer access to facilities and services that lead to improved health outcomes and greater social interaction than would be possible in a general residential setting.
“As the research notes, these services are normally provided privately to residents, which in turn reduces the need for government-funded services and infrastructure, leading to budget savings.”
Mr Myers said the report also highlights “that retirement villages and seniors’ living communities also provide other intangible benefits, including an increased feeling of security, which is an invaluable benefit that is impossible to put a price tag on”.
For more information, see the website retirementliving.org.au/research.
Source: The Senior