- December 30, 2018
- Posted by: Ethica Private Wealth
- Category: Blog
When planning for your retirement, one of the most pressing questions you’ll find yourself asking is ‘where will I live?’. While many retirees are happy to stay in the same family home they’ve spent their working life in after they’ve retired, others prefer to move somewhere else that better fits their new lifestyle.
To help you explore the different options available to you, in this article we’ll be looking at 5 popular accommodation options for retirees in Australia.
1. Aged Care Facilities
Aged care homes are often not the most preferred accommodation option amongst retirees in Australia. In fact, according to 2015 research paper ‘Housing Decisions of Older Australians’, only 1% of survey participants over 60 would prefer to live in an aged care facility.
However, they’re nonetheless an important option to consider, particularly for those who might need more assistance with everyday tasks as they grow older. Aged care homes often provide meals and nursing services in addition to accommodation in order to support residents that need this assistance.
The level of help and support on offer can differ between different facilities. Some offer hotel services, personal care assistance, and more complex care services. Aged care facilities are also often subsidised by the Australian government.
How much you’ll pay for the aged care facility will depend on your wider financial picture. The government funds a large portion of aged care but residents that can afford to contribute to their accommodation costs are expected to. How much you pay will depend on several factors, and it may be worth consulting a financial advisor to help you get a clearer picture of this.
Read more: How to Choose an Aged Care Facility
2. Retirement Villages
For retirees who don’t feel they need the level of care and support provided by aged care facilities, retirement villages may be a good alternative. They offer residents a number of services while allowing them to live independently.
They’re also a more popular form of retirement living; there are over 2,000 villages across Australia with over 190,000 residents in them. 6% of people over 60 also prefer retirement villages, according to the same paper that found 1% of retirees prefer aged care facilities. While still significantly lower than the number of people that prefer to live in their existing homes, this is nonetheless an encouraging improvement.
This is no doubt due to the balance these villages strike between independence and community. Typically, villages offer villas or units with between 1 and 3 bedrooms that have been designed to suit older residents. They also offer an increased level of security and the feeling of community and companionship that comes with living within a network of other elderly residents.
3. Co-located Villages
Co-located villages get their name from the fact that they are retirement villages which are located directly next to aged care facilities, on the same block of long.
This makes them ideal for anyone whose partner is in an aged care facility, but is not ready to make the move there themselves. Couples in this situation can easily visit one another as they’re living nearby.
It also offers a greater level of security in knowing that you can quickly move over to an aged care facility if your health deteriorates as you age and you begin to need a greater level of support, without having to relocate across the country. Most co-located villages are run by Not For Profit organisations.
4. Land Lease Communities
Land lease communities are essentially resort communities with an interesting home ownership model. Retirees will own the physical home outright, but will have to pay to rent the land which the property is on.
The benefit of this is that the total cost of owning the home is dramatically reduced. Centrelink may also be able to offer certain retirees support in meeting the land rental costs.
There are currently more than 200 land lease communities in Australia, with more being built regularly.
5. Serviced Apartments
Serviced apartments are similar to a mix between a hotel room and a retirement village home. They’re located within retirement villages, which means residents can have the same sense of community as those who choose full homes, but are typically much smaller.
They’re usually 1-bedroom or studio apartments. Many don’t have kitchens, but you can instead have dinner in a communal dining room. You also have the option of having cleaning or care services.
If none of the above are what you envision for your own retirement, there are other options too. Many retirees elect to stay in their own existing home and have in-home care services if required. Others choose to move in with their families for an additional layer of support from their loved ones as they get older, or to be closer to grandchildren.
Alternatively, you might even consider moving abroad for a change of pace and some new, exciting surroundings.
Read More: Top 12 Australian Retirement Destinations
Which Option is Right For Me?
With so many options to choose from, it’s important to weigh up each of them carefully. Possibly the most important consideration to make is to ask which is the most affordable. You should carefully consider your finances to ensure that the accommodation you choose fits within your retirement budget.
This involves careful financial planning, and you may even need to start saving extra for your retirement to make sure you can afford the accommodation you want.
Fortunately, the team at Ethica Private Wealth Specialists might be able to help. Contact us today and book your free 2-hour consultation to start planning for your retirement.