Introduction to retirement villages

What's a retirement village?

Across Australia, almost 200,000 older Australians call a retirement village home.

Moving into a retirement village can be a great way to kick back and enjoy life in your later years but with so many different options out there it can be confusing to figure out the best way to go.

We’ve prepared this simple guide to help you understand the ins and outs of retirement village living.

A retirement village is an age-appropriate housing development that offers a range of accommodation options, services and facilities for older Australians. You live independently in your own home while enjoying the benefits of community living.

Homes are specifically designed to make life easier and more enjoyable and site maintenance and landscaping are taken care of. What’s more, there are communal areas and you can usually access support such as home care services.

Retirement villages are not aged care centres or nursing homes.

What type of homes and facilities do retirement villages have?

The properties, usually referred to as independent living units (ILUs), come in many shapes and sizes, including villas, high or medium-rise apartments, serviced apartments and terrace houses.

Services and facilities vary too, and can range from golf courses, swimming pools, gyms and theatres to organised social events and 24-hour emergency assistance.

Retirement villages are ideal if you require little or no assistance with daily activities, but want to enjoy the benefits of living in a community with other older Australians.

ILUs are usually cheaper than similar-sized homes in the same area, although there are other costs associated with living in a retirement village.

Exploring the Differences Between Types of Retirement Villages

Retirement villages come in various formats, each catering to different needs and financial situations:

• Resident-Funded Villages: Residents pay an ingoing contribution for their unit and contribute to the ongoing costs of village maintenance and services. This model is prevalent and offers a sense of ownership and community.

• Donor-Funded Villages: These are often run by non-profit organisations or charities. They may offer lower entry costs and are designed to accommodate residents who need financial assistance.

• Villages with Home Care Services: These villages allow residents to live independently while receiving varying levels of home care support, from help with daily tasks to medical care, tailored to their changing health needs.

• Retirement Villages with Residential Aged Care: Some villages provide integrated aged care facilities. These are suitable for residents who may eventually require full-time care, providing a seamless transition from independent living to more comprehensive care within the same community.

Each type of village offers unique benefits, and your choice will depend on personal circumstances, health considerations, and financial capacity. Understanding these differences can help ensure that the retirement living option you choose will align with your lifestyle, provide the appropriate level of care, and adapt to your needs as they evolve over time.

Can you rent in a retirement village?

Yes, you can rent in a retirement village. While many residents choose to buy their units, rental options are available, offering the same access to facilities, services, and community activities without the commitment of ownership. This flexibility can be particularly appealing for those looking to preserve capital or who are uncertain about their long-term plans.

How old do I have to be to live in a retirement village?

As long as you’re 55 or over, you can join a retirement village! Despite the name, you don’t need to be retired to live in a retirement village. In fact, many of our residents are still working.

What are the costs involved?

There are many ways to pay for your new home and the costs will depend on which village you choose and where it’s located.

Remember, don’t sign any contract before getting independent legal and financial advice. It’s essential you get a really good understanding of the different payment options and any ongoing fees, which must be specified in the contract.

You’ll need to consider deposits, the different types of tenure arrangements, any type of management fee and what happens when you vacate.

For a good overview of the costs associated with retirement village living, check out our which explains a number of pricing options you can choose from.

Are there security measures in place for the residents?

Most retirement villages in Australia have some level of security in place for residents.

Generally you'll find that villages have CCTV, secure access control to buildings and apartments and overnight security patrols.

It’s best to ask your village sales consultant about the specific security measures in place at the village you’re considering as your new home.

Are pets allowed?

Many retirement villages allow you to have small pets, but they usually need to be approved before you move in. What’s allowed varies from village to village, and in some cases pets aren’t allowed at all, so it’s always best to check with the specific village you’re considering before moving in.

What is the Retirement Villages Act?

Each state has its own Retirement Villages legislation, which is designed to protect your rights.

It is very important for you to understand your rights and the Retirement Villages legislation outlines the obligations that residents and operators owe to each other.

If you would like a copy of the Retirement Villages legislation that will apply to you, please contact the appropriate legislative body in your state or give us a call on 134 478.

Who runs retirement villages?

Retirement villages are owned and operated by private operators as well as not for profit and community organisations such as churches and charities.

What happens if my needs change?

If your needs change, you can choose to receive additional support through home care services, whether it’s a hand around the house with cooking and cleaning or help with transport and getting out and about.

Unlike most family homes, many villas and apartments at retirement villages feature age friendly design. This means there’s plenty of room for mobility aids, and easy-grip door knobs and taps.

If either you or your loved one ends up needing 24/7 support, some retirement villages are co-located with an aged care centre where you can receive ongoing professional care.

If the time comes for that level of care you'll need to contact My Aged Care and get an aged care assessment. Find out about that process below.