Retirement villages vs aged care
Retirement villages and aged care aren’t the same thing.
Plan your cost of living in retirement
Tuesday, 05 August 2025
If you want to make the most of your money in retirement, start by understanding your cost of living.
Planning for retirement isn’t just about how you’ll spend your time. It’s also about knowing your everyday expenses and making sure your money supports the lifestyle you want.
5 factors that influence your retirement costs
No two retirements are the same, but these five factors can have the biggest impact on your living costs:
- Housing - Whether you own your home, rent or are considering retirement living, your living arrangement affects everything from utility bills to maintenance costs.
- Lifestyle - Travel, hobbies, dining out and social events all shape how much you’ll need.
- Health - Healthcare costs often increase over time, including insurance premiums, prescriptions and specialist visits.
- Location - Your cost of living varies depending on whether you live in a capital city, coastal town or regional area.
- Transport - Whether you own a car, rely on public transport or live somewhere walkable, it all affects your budget.
Ready to start crunching the numbers? Read our full article on planning for retirement.
Ways to make your money go further in retirement
Here are some practical steps you can take right now to help your retirement income go further:
- Set a budget - Understanding what’s coming in and going out helps you stay in control and avoid surprises.
- Check your entitlements - You may be eligible for the Age Pension, concession cards or discounts on utilities, transport and healthcare.
- Plan for the unexpected - It’s a good idea to set aside a little extra for medical costs, home maintenance or emergencies.
- Think about downsizing - Selling your home and moving somewhere smaller or more manageable could free up funds to enjoy life or boost your super.
Why downsizing worked for Jeff
Jeff, a business advisor and consultant who lives at Koorootang Court, still works full-time from his home office. His decision to move was prompted by the growing weight of mortgage costs.
“Selling our previous home meant we could eliminate the growing burden of mortgage costs. We didn’t know how many more years I’d keep working but this move gave us certainty and security either way. We needed a change and we loved the village at the time of our visit, so we went ahead with it.”
Downsizing can relieve financial pressure in retirement. Take a look at our tips for right-sizing your lifestyle.
How selling your home could boost your super
For many retirees, downsizing isn’t just about reducing costs. It can also be a smart way to strengthen your financial position.
Kathy, a resident at Burwood Terrace took advantage of a government incentive to boost her super when she made the move to retirement living.
“I had in mind the government’s superannuation incentive which allowed me to contribute up to a significant amount of money from the sale of my home,” she says.
Kathy is referring to the Downsizer Contribution, a government initiative that allows eligible Australians aged 55 and over to contribute up to $300,000 from the sale of their home into their superannuation, without it counting toward their usual contribution caps. For couples, that’s up to $600,000 combined.
Why retirement living can be a smart move
Village living can help lower your everyday expenses, as Jenny from The Brighton on Bay discovered. With help from a financial advisor, she was able to see the full value of her decision.
“I looked at what I’d be paying monthly and compared it to what I’d save with the sale of my current home - no more water rates, gas bills, home insurance or gardening costs. It was a practical, smart shift. I wasn’t losing money although I would be paying a monthly fee. I was also investing in my safety, wellbeing and happiness.”
In a retirement village, you’ll usually pay a monthly service fee that covers the day-to-day running of the village including upkeep, maintenance and shared amenities. Learn more about Keyton's monthly fees.
Curious about how Jenny found clarity in her retirement move? Read her story here.
Everyone’s story is different, so tailored advice is important
If you’re planning to retire in the next few years, getting personalised financial advice can make a big difference.
To get the right support, consider talking to a Retirement Living and Aged Care Specialist®. You can learn more in our article here.
⚠️Disclaimer: The information provided here is for general informational purposes only and should not be construed as financial advice. It’s important to consult with a qualified financial advisor or professional who can provide personalised guidance tailored to your specific financial situation and goals. Making financial decisions involves inherent risks and individuals should conduct thorough research and consider their individual circumstances before making any decisions.
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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