Retirement villages: your questions answered

Deciding to move into a retirement village is a big step. For many Australians, it kicks off a long list of questions about their options. From financial considerations to lifestyle factors, it’s natural to want clear answers before making such a significant life change.

Posted July 1st 2025

by David McManus

<p>What do you want to know about your accommodation options? [Source: shapecharge via iStock]</p> — What do you want to know about your accommodation options? [Source: shapecharge via iStock]

At AgedCareGuide.com.au, we’ve gathered the most common questions older Australians are asking when considering the move. Whether you’re planning for the future or ready to downsize now, this guide is designed to help you make an informed decision.

Should I rent or buy in a retirement village?

Whether you rent or buy a place in a retirement village depends on your circumstances. Renting can be more affordable upfront and offers greater flexibility, while buying often provides long-term security and a sense of ownership. It’s worth weighing the pros and cons of both options before making a decision.

For a more comprehensive breakdown of the pros and cons, visit the Aged Care Guide information article on retirement village accommodation.

What makes a retirement village a retirement village?

While eligibility to enter a retirement village in Australia typically starts at the age of 55, the reality is that most residents choose to make the move later in life.

The 2023 PwC/Property Council Retirement Census included some statistics about retirement villages to give a snapshot of the sector.

The average age at entry: 75 years
The average current resident age: 80 years
The average length of stay: nine years

This trend suggests that many seniors choose retirement-village living when seeking a balance between independence and the added support these communities provide.

What costs should I expect?

It’s important to look beyond the advertised price. Entry fees, monthly service or maintenance charges and exit fees — such as Deferred Management Fees — can all apply. Knowing the full cost breakdown can help avoid surprises later on.

If you have any issues or concerns with your retirement village that can’t be resolved through mutual communication, you can contact your state or territory consumer protection agency.

What services and amenities are offered?

Many villages offer community centres, gyms, gardens, libraries and organised activities. Some include extras like housekeeping, meals or even on-site healthcare. Make a list of what’s important to you and ask each village what’s included.

What if my health or care needs change?

Some villages offer on-site or nearby aged care and home care services, whereas others are co-located with residential aged care facilities. It’s essential to inquire about the support available now and in the future, so you’re not caught off guard.

What is a Deferred Management Fee?

A DMF is a common exit fee where a portion of your home’s value is retained by the village operator when you leave. A DMF is a fee charged when you leave the village, usually upon resale of your unit or departure. It’s typically calculated as a percentage of your entry price or the resale price, accruing over time, commonly up to 30 – 35 percent over five to 10 years.

Not all retirement villages charge a Deferred Management Fee, but most do, especially those offering lease-for-life or loan-licence arrangements. Here’s a quick breakdown to clarify:

✓ Most traditional retirement villages, especially larger, operator-run ones, do charge a DMF.
✕ Some rental retirement villages or independent living communities, especially not-for-profit or government-subsidised providers, do not charge a DMF, but they may have higher weekly rent instead.
⚙ Strata-titled or freehold retirement properties, where you own the unit outright, may not charge a DMF, but instead require body corporate and maintenance fees.