 |
Send To A Friend |  |
Print Page | Text Size: | A A A |
Getting Started - Lifestyle Communities
Planning for a comfortable lifestyle once you leave the workforce takes a lot of thought and commitment. This is especially the case when you consider that the average Australian spends 25 years in retirement.
What is a Lifestyle Community?
Lifestyle Communities, often referred to a Retirement Villages or Self Care, are essentially a community for seniors offering an accommodation and lifestyle alternative that may suit many individuals. In most cases, entry is for individuals, or their spouses, who have reached 55 years of age or have retired from full-time employment, however making sense of the financial structures and comparisons between Lifestyle Communities can be quite complex.
If part of your planning involves finding the right Lifestyle Community we have put together some tips to try and make your search easier.Following are links to pages that provide an overview of some of the most important areas to consider when searching for a Lifestyle Community and making the ultimate decision:
The right location
Preferred surroundings
Will you live in a major city, move to a quiet rural area, a sea change on the South Coast or overseas? Where you plan on retiring could depend on the location of family, an area you’ve always dreamed of living in but couldn’t because of work commitments, or your financial capability.
Every individual looks for different things in a home and where it is situated, and these same considerations should apply when looking for accommodation in a Lifestyle Community, as this will be your home.
Some things to consider when choosing an area to locate to:
Find out if the area has hospitals, medical services or public transport nearby
- The area you choose should support your own lifestyle and beliefs
- Look for an area that has access to those things that interest you, whether it be sports, shopping or restaurants
- Consider whether your family can visit you easily from time to time
- Check the general house prices in the area as they will impact on the Lifestyle Community accommodation prices
Looking to the future
There are many different types of Lifestyle Communities to choose from in your search, in which you may wish to take into account your future needs. These range from stand alone communities to those that provide a home for life, where you do not need to relocate if your care needs change.
-
Stand Alone – A community of seniors who need little if any help with their daily activities and usually live in apartments or villas, although sometimes single family homes.
A range of personal services, such as In-Home Care, may be available if you require a little more assistance or care. There are some In-Home Care packages that are partly funded by the government which require an assessment by the Aged Care Assessment Team (ACAT) to determine an individual’s care needs and eligibility. Alternatively you can opt to pay in full privately for these services.
-
Home for Life – A community that offers a wide range of care accommodation and services along with the Lifestyle Community, so that you do not need to relocate should your care needs change.
A Care Centre (or Residential Care) is located within the Community for seniors who require some form of care, whether this involves basic daily needs such a bathing or shopping to full time skilled nursing care. Care Centres are regulated and partly funded by the Government, therefore seniors require an assessment by the Aged Care Assessment Team (ACAT) to determine an individual’s care needs prior to entry.
Services offered
Many Lifestyle Communities offer amenities such as a gym, spa, pool, community areas to pursue hobbies, in addition to onsite services like hairdressers and restaurants. However the services, settings and culture can vary enormously.
Some communities develop an elegant, formal atmosphere, while others promote casual friendliness. In some cases communal living is encouraged with family-style meals and organised activities, while others with single-family homes may emphasise privacy. A few communities are restricted to members of certain professions, faiths or organisations.
What costs to expect
We understand the financial minefield of exploring Lifestyle Community options.
To simplify the process, there are three main financial factors you need to consider:
- Ingoing contributions – Also referred to as Entry Fees, is the entry cost into the Lifestyle Community. There are generally a number of financial options offered to suit your individual circumstances, and depends on the particular Community’s legal structure.
- Ongoing contributions – Also referred to as Recurring Charges, are fortnightly payments that contribute to the ongoing maintenance and other selected services for your new home.
- Exit payments – Also referred to as Departure or Exit Fees, depends on your accommodation structure and should be negotiated prior to moving into a Lifestyle Community. Exit payments determine how much you receive back when you leave the Lifestyle Community.
For more information, visit our Industry Links page for a list of some websites that can assist you.
Important considerations
There are some important areas you should consider on your search, as you will come across many different situations. Below are a few that may assist you.
- Don't leave it too late – Moving to a Lifestyle Community is essentially a lifestyle decision and waiting lists of 10 years or more could apply. If you leave the decision until the health of you or your spouse starts to fail it may make things much more difficult to organise.
- Make a checklist – Before you start your search it is wise to make a checklist of the things that are important to you, and those that aren’t. This list should involve aspects of the area you live in, the Community features and accommodation, future needs and financial circumstances.
- Think about the future – It is important to consider whether the Community, or associated services, will be able to meet your needs in the future if they change and you require assistance.Do your research and be prepared – View the accommodation, the Community and the location in detail to make sure they are appropriate for you. Talk to the Community staff, current residents, and observe the daily life of the Community.
- Don't forget the big picture – Remember that as important as your home is, you also need money to enjoy your lifestyle. A financial plan is useful to put in place to be able to know what is realistic and make your search easier. Also, if you don't have a will or it no longer reflects your wishes make one or have it updated.
- Understand the exit payments – As different Communities have different scenarios for the exit payment depending on the accommodation structure, ensure you find out how much it would be in a range of scenarios and satisfy yourself that it is suitable for your intended or likely period of occupation.
- Look at everything the Community offers – While vitally important, making decisions based solely on the costs and legal structure can be limiting. Lifestyle Communities can offer many exciting benefits and opportunities which should all be considered, as you want to make sure you can make the most of your retirement and enjoy it!
- Shop around – We suggest looking at a number of different Lifestyle Communities before you make the ultimate decision. This allows you to make informed decisions based on comparisons between what each Community offers.
- Review the contract – When you join a Lifestyle Community, you sign a long-term agreement that spells out what you're paying for, from the size and location of your apartment or villa to how many meals are included in your monthly fee. Items like cleaning, laundry and transportation may be part of the package, or you may have to pay for them. Ask for the fee schedule for services that are provided but not covered by your monthly payment.
- Seek legal and financial advice from those with experience in retirement accommodation – There are so many different legal structures and payment options to consider that can be quite confusing. Make sure you read everything; however enlisting the services of experts will ease the strain and worry of making sure that you understand these important matters correctly.
- Search industry websites and publications for detailed information – There are many government and industry bodies that can assist you in understanding the complexities of Lifestyle Communities. Visit our Industry Links page for a list of some websites that can assist you in your information search.
