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on the Monday, September 8, 2025
Moving into a retirement village is an exciting new chapter, but it also comes with financial decisions that require careful planning. Understanding the costs, fees, and contract types will help you make informed choices and enjoy peace of mind in your retirement years.
Here’s a practical guide to help you navigate the financial side of retirement village living in Australia, including key tips and tricks to stay financially secure.
Retirement villages operate under different financial models to aged care homes. While not typically means-tested, village costs can vary significantly depending on location, amenities, and contract structure.
The main costs you may encounter include:
Often called a "purchase price" or “entry contribution”
Grants you the right to live in the unit, but not full ownership
Typically refunded (partially or fully) when you leave, depending on contract terms
Regular payments for village upkeep, services, and facilities
Covers things like maintenance, staff wages, gardens, insurance, and amenities
Usually charged weekly, fortnightly, or monthly
Charged when you leave the village
Often calculated as a percentage of the entry price per year of residency (capped)
Can significantly reduce your refund, so it’s important to factor into long-term planning
Utility bills (if not included in ongoing fees)
Food, transport, entertainment, health services, insurance, etc.
Contracts can be complex. Before signing:
Request a breakdown of all fees
Clarify refund entitlements and timelines
Understand how future price increases are handled
Tip: Consider having the contract reviewed by a lawyer or financial advisor who specialises in retirement living.
Each Australian state and territory has its own Retirement Villages Act. These outline residents’ rights and obligations.
Tip: Use Retirement Living Online to find region-specific resources and regulations.
Factor in:
Potential healthcare needs
Inflation and rising living costs
Changes in income or pension status
Tip: Create a 5–10 year budget scenario to forecast how your savings will last.
While some villages may seem more expensive upfront, they may offer greater long-term value through:
On-site health services
Security and maintenance
Social activities that reduce outside expenses
Tip: Weigh the financial cost against the quality-of-life benefits.
Moving into a retirement village may affect your Age Pension or Rent Assistance depending on your contract and assets.
Tip: Check with Centrelink or a financial advisor to ensure your benefits continue smoothly.
Professionals with aged care and retirement expertise can help you:
Optimise pension entitlements
Structure your assets for tax efficiency
Navigate contract complexity
Centrelink: Offers information about how your retirement village home is assessed under the assets and income tests.
Services Australia: Provides guidance on pension eligibility and Rent Assistance.
Retirement Villages Act (State-Based): Protects residents' rights, with rules about contracts, cooling-off periods, and fee transparency.
Planning for retirement village living isn’t just about where you want to live - it’s about how you’ll afford it, now and into the future. With the right information and expert support, you can make confident choices that align with your lifestyle goals and financial wellbeing.
Explore your options at Retirement Living Online. Filter by state, lifestyle features, price range, and contract type to find the perfect fit.
