What Are the Costs Associated with Retirement Village Living?

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Retirement villages in Australia offer a lifestyle tailored for older Australians, combining independent living with community amenities and optional care services. While the benefits are clear, it’s important to understand the financial commitments involved. Costs can vary widely depending on location, village type, and the services included.

This guide outlines the main expenses to help you plan and budget for retirement village living.

1. Entry Fees (Ingoing Contribution)

Often referred to as an ingoing contribution, this is a lump sum paid to secure your place in the village.
It grants you the right to occupy a unit or villa, though you may not own it outright.
Entry fees vary depending on the size, location, and quality of the accommodation.
Typically, a portion or all of the entry fee is refundable when you leave, subject to contract terms.

Tip: Check if the entry fee includes access to facilities like gyms, pools, or communal areas.

2. Ongoing Fees (Service Charges / Maintenance Fees)

Regular fees cover the cost of village upkeep, staff, and shared services.
These fees may be billed weekly, fortnightly, or monthly.
They typically cover:
- Maintenance of gardens, buildings, and communal areas
- Utilities in common areas
- Staff services such as reception or lifestyle coordinators
- Insurance and administrative costs

Tip: Always clarify which services are included and which are extra.

3. Exit Fees (Deferred Management Fees / DMF)

Charged when you leave the village, exit fees are often calculated as a percentage of your entry fee per year of residency.
The total is usually capped at a maximum percentage.
Exit fees contribute to the ongoing maintenance of the village and future upgrades.

Tip: Understand how the DMF affects your refund and how it is calculated in your contract.

4. Additional Costs

Depending on the village and your lifestyle, you may also need to budget for:

Utilities in your private unit (electricity, water, gas, internet)
Optional care or support services
Personal insurance (contents or health insurance)
Social activities, excursions, or hobbies
Transportation or parking fees

5. Financial Planning Tips

Compare Multiple Villages

Evaluate entry costs, ongoing fees, and exit fees across different villages.
Factor in location, amenities, and included services to determine value.

Understand Your Contract

Retirement village contracts can be complex.
Check for hidden fees, fee increases, and refund terms.

Consider the Long-Term Costs

Budget for inflation, lifestyle changes, and potential future care needs.
Include health, travel, and social activity costs in your planning.

Seek Professional Advice

A financial adviser or lawyer familiar with retirement village contracts can help you make informed decisions.

6. Government Support

Depending on your income and assets, moving into a retirement village may affect Age Pension eligibility.
Check with Centrelink or a qualified financial adviser to understand how your entitlements are impacted.

Understanding the costs of retirement village living is essential for making a confident and informed decision. By knowing what to expect - entry fees, ongoing charges, exit fees, and other expenses - you can budget effectively and enjoy the lifestyle and community benefits that retirement villages offer.

Find Retirement Villages That Suit Your Budget

Explore retirement villages across Australia, compare costs and services, and find your ideal community at Retirement Living Online.