Retirement villages vs aged care
Retirement villages and aged care aren’t the same thing.
A brighter chapter: How retirement living is evolving for you
Tuesday, 08 July 2025
Starting a new chapter in life is a journey that should be filled with confidence, not confusion.
Ready when you are
A lifestyle measured in happiness
Greater financial clarity and peace of mind
Understanding the financial details is essential for peace of mind. Daniel pointed out a key advantage from the RLC's research: retirement living can be a more affordable choice, with the average cost of a two bedroom unit being 41% lower than the median house price in the same postcode.
He also explained that the industry is making great strides in improving financial transparency. A key part of this is clarifying the Deferred Management Fee (DMF), often called an 'exit fee'. This is a payment made to the operator when a resident permanently leaves the village – you can read more about this here. It is a core part of the retirement village financial model which, in exchange for this future fee, helps to make the initial purchase price of a home more affordable.
The calculation of this fee is becoming simpler. Citing recent PwC-RLC Retirement Census data, it was noted that for 65% of new contracts, the DMF is based on the resident's ingoing payment, and the operator is responsible for refurbishment costs when the resident vacates. This provides residents with much greater certainty about their future finances.
Your rights are stronger than ever
Feeling secure in your decision is crucial. Resident rights are protected by robust frameworks, with every state and territory having its own Retirement Villages Act. This Act serves to protect the financial and personal interests of residents, sets out the information retirement villages need to give prospective residents, and provides rules and laws for operators to follow. He highlighted several positive changes across the country:
- Standardised information: Many states now have clear, simple disclosure documents and online comparison tools to help you understand and compare your options before you commit.
- Mandatory buybacks: Set timeframes for buybacks are now legislated in all states and are essentially harmonising, meaning you or your estate will be paid out for your home in a timely manner.
- A Code of Conduct: The industry's own Retirement Living Code of Conduct serves as another layer of assurance that many operators are committed to high standards and best practices.
Make your next move with confidence
To conclude the session, Daniel offered some clear advice for those considering a move to a retirement village:
- Ask plenty of questions: "Don't leave those meetings without asking the questions that you have on your list, especially as it relates to financial obligations".
- Seek independent advice: “Always obtain and seek independent financial and legal advice, to make sure that you truly understand exactly what you're signing up for”.
- Don't feel pressured: "Don't be pressured into anything that you're doing". This is a major life decision and you should take the time you need to feel comfortable.
Retirement living offers a wonderful opportunity for a vibrant, secure and happy future. With stronger protections and a clear focus on wellbeing, you are more empowered than ever to choose the lifestyle that’s right for you.
Watch the webinar and learn more
If you found these insights from Daniel valuable, you can delve even deeper by watching the full 'Know Your Retirement Village Rights' webinar. It’s part of our 'Navigate Your Retirement With Confidence' webinar series, available for you to watch for free and on your own time. Gain direct access to expert knowledge that will empower you on your journey.
Register today to watch the series and make your next move with confidence.
This article contains general information and is not intended as legal or financial advice. The views and information presented are those of the guest speaker from a webinar hosted by Keyton and do not necessarily represent the views of Keyton. Individual circumstances may vary, and prospective residents should make and rely on their own enquiries.
For more information about the lifestyle and support offered at our retirement villages, call our customer service team on 1800 550 550 or send us an email here.
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