Retirement villages: What is a retirement village?

Submitted by Emma Hamilton on Mon, 24/10/2011 - 4:07pm

Retirement village living is a popular accommodation choice for many people over 55. Residents of retirement villages are generally healthy and independent.

Living in a retirement village allows people as they age to maintain their independence in a supportive and secure environment without the worry of maintaining a large family home.

In this article:

What are the benefits of retirement village living?
What is an independent living unit?
What is a serviced apartment?
Understanding the financial and legal costs

What are the benefits of retirement village living?

Retirement village living offers residents a positive combination of independence and security. Residents of retirement villages enjoy living with people of similar age and interests in the privacy of their own apartment.

Most retirement villages are conveniently located close to shops and public transport. The recreational and social activities on offer at most retirement villages give residents the opportunity to meet new friends and remain active in their community.

Retirement villages are increasingly catering to the needs of the frail aged. Medical clinics are usually available for visiting doctors and qualified nursing staff are on call in case of an emergency.

Many retirement villages now have aged care homes attached allowing residents to "'age in place". This enables residents to remain at the retirement village even if their care needs change.

The two main types of care available within a retirement living complex are referred to as independent living units and serviced apartments.

What is an independent living unit?

Independent living units (ILU) offer the lowest level of care. Independent living units can range from a small studio to a large two or three bedroom unit.

Residents generally live independently in the privacy of their own unit. Companionship is not far away and if they choose residents can enjoy shared meals and communal areas. Residents feel safe knowing that a 24 hour call emergency service is available if required.

What is a serviced apartment?

Serviced apartments are sometimes referred to as "assisted living" and are part of a larger retirement village complex. Most serviced apartments offer one or two bedroom suites with access to common social and entertainment areas.

Residents of serviced apartments prefer living in the privacy and comfort of their own serviced apartment. They are generally mobile and independent. Meals are served in a communal dining room and staff help with heavy laundry and cleaning.

Before entering a serviced apartment a village coordinator will conduct an individual assessment. Extra care services can be tailored to suit a resident's health care needs if required for an extra fee. This could include help with personal hygiene or managing medications.

An emergency call system enables residents to call for help in case of an emergency. Families can feel peace of mind knowing that personal care staff are available 24 hours a day.

The qualifications of care staff will vary in retirement villages as will the services available. It is important to recognise that older people with complex care needs won't always suit living in a serviced apartment.

Some serviced apartments cater to the needs of people living with dementia.

Understanding the financial and legal costs

It is essential before committing to retirement village living or a serviced apartment to have a clear understanding of the legal and financial implications involved. Always seek independent legal and financial advice before signing a retirement village contract.

Prospective residents need to be sure they understand the type of retirement village arrangement they are entering into (ie. loan/licence, rental, company title, leasehold, strata scheme).

Always check how long it will take before your entry contribution fee or departure fee will be refunded in case you need an accommodation fee for an aged care home.

The financial arrangements, services and fees can vary between retirement villages. Retirement village fees can include maintenance fees, deferred maintenance fees, weekly service fees and costs for extra care services.

Helpful resources

The office of NSW Fair Trading list a number of publications that you could find helpful.
Retirement Village Association have some useful information about retirement villages around Australia.