Retirement village more affordable than living at home
A new report by the University of Technology Sydney has found that when factoring in the total living costs for older Australians, retirement villages are more affordable than general residential homes.
Wider regulatory review of the sector is needed (Source: Shutterstock)
The report shows that while the ownership costs of a house are lower, the real savings are provided through the lifestyle services included in retirement village living.
Report author Lois Towart says the research highlights the differences between the choice of retirement village living and general residential.
“It is based on a like-for-like basis and compares nine retirement villages across Australia with general residential properties of a similar age, style and level of accommodation in each locality,” Ms Towart says.
“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.”
Executive Director Retirement Living at the Property Council of Australia, Ben Myers, says 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,” he says.
“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.
“The report also highlights that retirement villages and seniors living communities provide other intangible benefits, including an increased feeling of security, which is an invaluable benefit that is impossible to put a price tag on.”
The full report is available to view online.
Senior leaders from retirement village operators and service providers are invited to attend the National Retirement Living Summit on the Gold Coast on 27 – 28 November.
The event is the the year’s biggest annual event dedicated exclusively to the retirement living sector, discussing the important issues and trends around retirement living.
