Many people are confused about the difference between a retirement community and an aged care facility, and I would certainly agree that the lines appear to be blurring between the two.

So what is a retirement village?

A retirement village is basically whatever is defined as a retirement village in your state or territory’s retirement village legislation. Typically, the legislative definition describes it as a property where retired or older people reside, and they purchase a right to occupy (usually via a lease or licence to occupy) and may purchase additional services for a fee. A village needs to be registered under the state retirement villages act in order for it to charge all of those weird and wonderful fees like deferred management or exit fees.

However, you may have heard of other retirement living facilities such as an Over 50′s or Over 55′s village, or a lifestyle resort. These complexes typically sell you the freehold title to the built structure (the house) and then lease you the portion of land it sits on. These developments come under the state or territory’s manufactured homes legislation, usually the same legislation that covers caravan parks and the like.

Other retirement-style facilities include freehold complexes, where you own the freehold title to the unit. These facilities may or may not be registered retirement villages and may or may not charge all of the same fees (such as deferred management or exit fees) that you will find in a village operated under the retirement villages legislation.

There are around five different types of purchase and occupancy arrangements for retirement villages and each one has its own framework of fees, charges and complexity. Generally speaking, the occupant pays an upfront fee similar to the freehold value of the property, then a small regular fee during their occupancy, and a larger deferred fee upon exit.

Retirement villages are typically targeted to retirees who can live independently, although many villages now offer some care services as well.

Aged Care on the other hand, comes under the one Commonwealth Aged Care Act 1997, which dictates how the charges and occupancy is arranged. There is still a fair bit of discretion on the operators behalf as to the quantum of charges, and you should be sure to get good advice from a financial planner skilled in the aged care area before you sign anything. As with retirement communities, certain aspects can be negotiated and you should never rely on the company sales agent to give you the right advice.

Under the aged care model a resident may be charged for the care and services provided, as follows:

• Basic daily fee – as a contribution toward accommodation and costs of daily living.
• Income tested fee – as a contribution towards the costs of care.
• Accommodation payment – as a contribution towards capital accommodation costs.
• Extra services charge – applies to residents occupying extra service places (both permanent and respite) for the provision of a significantly higher standard of accommodation services and food.
• Additional service fee – where the resident requests or agrees to additional services (such as newspapers and hairdressing).

Aged Care facilities are targeted to seniors who need an element of nursing support in their day-to-day lives. This can range from a little assistance through to full palliative care. You can find out more on the Australian Government’s aged care website.

I think the confusion arises where you have retirement villages which offer an aged care facility within the same complex as the independent living units. These villages are called “integrated villages” and seek to offer a complete spectrum of care to alleviate the need for its resident’s to ever move again. Well-planned complexes will have the aged care area well separated from the independent living area so that able-bodied residents don’t mix with those who are requiring care.

Integrated facilities typically offer aged care as an incentive to potential purchasers interested in the independent living units, because this is where operators make their money. It is worth noting however that there is usually no guarantee to an existing resident of the village that there will be a place for them in the aged care facility, and they may still have to go onto a waiting list for a place. You may also have to sell your existing unit to fund your aged care place, and the fees associated with a sale of your residence can seriously deplete your capital base.

The aged care facilities within a retirement village may operate under the Aged Care Act 1997 and charge the purchase and occupation fees accordingly, or they may simply charge a weekly/monthly rental, or they may operate under the same deferred management fee schemes as the independent living units within the retirement village.

The whole area of aged care and retirement communities can be a real minefield. I strongly suggest that you find a good financial advisor who can guide you through the process and make sure you get the best deal you can.

If you would like to know more about Aged Care, Noel Whittaker and Rachel Lane recently published a book called “Aged Care – Who Cares?”. To promote the book they are running a series of aged care seminars in Brisbane, Sunshine Coast and the Gold Coast. The seminars are free and I would strongly encourage you to attend if you are interested in learning more about aged care.

The details for the general public seminar are attached here: WM Invitation – Aged Care Public Sessions 2011. Make sure you call to book your seat – previous seminars have booked out.

The details of the seminar aimed at aged care operators and industry is attached here: WM Invitation – Aged Care Industry Conferences 2011.

Queensland has around 190 registered retirement villages, with many of these located around Brisbane and the southeast corner of Queensland, including the Gold and Sunshine Coasts. The region is popular with retirees due to its pleasant climate, beaches and easy access to quality hospitals and health care. Many of the villages located near the Brisbane CBD are older villages, built around 30 years ago. The newer villages are located in suburban fringe locations where retirement village developers have been able to access large plots of land.

When considering where to live in Brisbane, the first decision you need to make is “which side” of Brisbane to live in. This could be the north side, as far up as Bribie Island or Caboolture, east in the Redlands region, south, as far as Logan, or west, out as far as Ipswich.

Understandably, the closer to the Brisbane CBD you want to live, the more expensive it is. For example, a two bedroom apartment close to the CBD may be $400-$500k, whereas a similar standard of apartment may be accessed for around $250k in the more regional locations.

Living in a retirement community can be a great lifestyle choice for retirees. Unfortunately, the process of buying a home in a retirement village is complex and confusing, with many hidden traps and charges awaiting the unwary buyer. It is important that you get good, independent advice and don’t just rely on what the village sales agents are telling you. Find My Retirement Home is a Brisbane-based independent advisor and buyer’s agent specialising in retirement homes. You can give us a call on 1300 425 442.

Retirement villages in Queensland are administered by the Department of Fair Trading.

There are five ways that retirees are able to own or occupy a retirement home in Brisbane. You can learn about the five different ways HERE.

One of the most difficult issues for the buyers of retirement homes to understand is that of Exit Fees, also known as departure fees or deferred management fees. You can learn more about Exit Fees on my video tutorial HERE.

If you would like to conduct an online search for the retirement villages available in and around Brisbane, please go HERE.

In Victoria, a retirement village is defined under the legislation as a community where most of the residents are aged 55 or over, have retired from full-time work and upon entering the village, paid a lump sum (called an ingoing contribution) that was not rent. There are around 400 retirement communities in Victoria.

Living in a retirement community can be a great lifestyle choice for retirees. Unfortunately, the process of buying a home in a retirement village is complex and confusing, with many hidden traps and charges awaiting the unwary buyer. It is important that you get good, independent advice and don’t just rely on what the village sales agents are telling you.

Retirement villages in Victoria are administered by Consumer Affairs Victoria.

There are five ways that retirees are able to own or occupy a retirement home in VIC. You can learn about the five different ways HERE.

One of the most difficult issues for the buyers of retirement homes to understand is that of Exit Fees, also known as departure fees or deferred management fees. You can learn more about Exit Fees on my video tutorial HERE.

If you would like to conduct an online search for the retirement villages available in Victoria, please go HERE.

In NSW, a retirement village is defined as any residential complex predominantly occupied by retired persons aged over 55 years. These residents have entered into some form of contractual arrangement with the owner or operator of the village, usually in the form of a loan/lease or loan/licence agreement.

According to the NSW Dept. of Fair Trading, there are approximately 591 retirement villages across NSW, accommodating more than 36,000 residents.

Living in a retirement community is a great lifestyle choice for retirees. Unfortunately, the process of buying a home in a retirement village is complex and confusing, with many hidden traps and charges awaiting the unwary buyer. It is important that you get good, independent advice and don’t just rely on what the village sales agents are telling you.

There are five ways that retirees are able to own or occupy a retirement home in NSW. You can learn about the five different ways HERE.

One of the most difficult issues for the buyers of retirement homes to understand is that of Departure Fees, also known as exit fees or deferred management fees. You can learn more about Departure Fees on my video tutorial HERE.

If you would like to conduct an online search for the retirement villages available in NSW, please go HERE.

As the average lifespan increases, ageing is not something to take lying down.

Getting older no longer looks the way it used to. Once upon a time, reaching your 60s meant saying goodbye to work, settling down in a cardigan and snuggling up with your grandchildren. Today, it might equally mean running a marathon, starting your own business, or going on a full-scale bender worthy of a 21st birthday party.

Read more: http://www.smh.com.au/entertainment/books/when-60-is-the-new-20-20110825-1jap5.html#ixzz1WBFdr9Qg

Introducing the Telikin – a simple, easy-to-use computer.

This is an ideal product for older folk who would like to get connected to stay in touch with kids and grandchildren, without all of the added complexity of a typical desktop computer.

Check it out HERE.

By the way, I am posting this because I think its great – no money or product has changed hands!

The latest Reserve Bank Bulletin points out the labour force has grown at an average rate of 2.5 per cent a year since 2005. That’s fast – it’s also an extra 1.4 million people. Where have they all come from?

The first source is more people of working age (those 15 and over) choosing to actually participate in the labour force. And the big increase has been among women, plus older workers choosing to delay their retirement.

Great article by Ross Gittins in the Sydney Morning Herald today…

Read more: http://www.smh.com.au/business/immigrants-and-oldies-share-our-growing-work-load-20110708-1h6ht.html#ixzz1RYqKeHYW

Telstra has launched the search for Australia’s most “retired and wired” senior to debunk the stereotype that older Australians are more comfortable with a crossword puzzle than a smartphone.

The launch of Telstra’s “Retired & Wired” initiative is supported by a new Telstra report by social researcher Mark McCrindle that shows an increasing number of seniors are surfing the web, trading up to a smartphone, making video calls or among one of the 500,000 seniors ‘liking’ Facebook.

The research reveals seniors are keeping up with technology trends with one in three Australians aged 65 or older online daily and more than a third using online banking. Mobile technology is also popular, with 70 per cent of seniors owning a mobile phone and using it to send at least one text message per day.

Key findings

• Age of reason: Seniors currently comprise almost one in five Australians, with this number set to increase to one in four by the year 2050.
• Technology is the new black: The average Australian senior sends at least one text message every day.
• Staying connected: Seniors are increasingly likely to use more sophisticated mobile phone features such as taking and sending photos, recording video, using apps, accessing the internet and even downloading ringtones.
• How we connect: Older Australians are most likely to email friends (27%), read the news (20%) or use social media (12%).

Telstra Executive Director Consumer, Rebekah O’Flaherty, said the “Retired & Wired” search to find Australia’s most technology savvy senior was set to prove competitive.

“We are on the search for the quintessential logged on, linked in, tech savvy senior,” Ms O’Flaherty said.

“This generation has witnessed the greatest technology revolution. These technology adaptors have experienced around six decades of change when you consider the introduction of new technologies such as television, computers, mobiles and the internet.”

Ms O’Flaherty said finalists would be selected to compete in a series of challenges, from downloading music to blogging and using a Telstra T-Touch Tab®.

“The finalists will each win a Technology Prize Pack consisting of a Pre-Paid Telstra T-Touch Tab and a Pre-paid Telstra Wi-Fi device to help them compete in the finals. And, excitingly, the ultimate winner will walk away with $10,000 in cash and be given a national platform to share their technology tips and tricks,” she said.

Social researcher Mark McCrindle said: “We are living in a highly connected world and today’s seniors are actively embracing the latest technologies. It’s no longer considered just a young-person’s domain. The majority of retired Aussies report they’re excited by new technologies and use them to improve their quality of life,” McCrindle said. “And many demonstrate a greater level of skill than people half their age.”

To nominate yourself or someone you know in the “Retired & Wired” search visit:telstra.com.au/retired-wired or facebook.com/telstra.

Media Contact:
Craig Middleton
Mobile: 0400 931 772
Email: media@team.telstra.com

The recession is having a lingering impact on the baby boomer’s retirement plans. Retirees and those close to retirement lack the time to properly recover from job losses, falling home prices, and investment portfolio losses. Their retirement options are to work longer, save more, or settle for a lower standard of living in retirement. Here is how the recession has impacted the retirement plans of people age 50 and older.

Read More…