Retirement villages in Australia

Retirement villages offer independent living in a community of older people, with shared facilities and less maintenance. For many residents, they're a great choice. But retirement village contracts are unlike buying or renting an ordinary home. They combine an entry payment, ongoing charges and, often, substantial exit fees, under rules that differ from state to state.

These guides explain how villages work, how to understand and compare the costs, the questions to ask before signing and the laws that protect residents. We don't list, rate or recommend villages, and nobody pays to appear in our guides.

Guides in this section

• How retirement villages work Who villages suit, contract types, the three stages of cost, services, residents' rights and alternatives.
• Exit fees explained Deferred management fees, rates and caps, entry versus resale price, capital gains, refurbishment and timing of payments.
• Questions to ask before you sign Questions for the operator, residents, your lawyer and your financial adviser.
• Retirement village laws by state Legislation and regulators in each state and territory, what the laws cover and how to resolve disputes.

The big picture

Contracts vary widely

Villages use loan and licence agreements, leases, strata titles and rental arrangements. What you hold affects your rights, your exit entitlement and pension treatment.

Look at the whole cost

The entry price is only the start. Ongoing charges continue for as long as you live there, and exit costs, especially the deferred management fee, can be large. Compare total costs over different lengths of stay. Our exit fee estimator helps you see how fee terms add up.

State laws protect residents

Each state requires disclosure before you sign, provides cooling-off periods and sets rules on charges, exit entitlements and disputes. Know your state's rules and regulator.

Advice is essential

Get independent legal advice on any contract and financial advice on how the move fits your finances and pension.

Who to contact

• Your state regulator for resident guides and information.
• A lawyer experienced in retirement village contracts.
• A licensed financial adviser, or Services Australia's free Financial Information Service.
• Your state tribunal for unresolved disputes.
• The Older Persons Advocacy Network on 1800 700 600 for support with aged care matters.

Common mistakes

• Comparing villages only by entry price.
• Not reading the disclosure documents.
• Signing before getting legal advice.
• Assuming the village provides aged care.

A short glossary

• Ingoing contribution: the amount you pay to enter a village, often structured as a loan to the operator under a loan and licence contract.
• Recurrent charge: the regular fee for running the village, sometimes called a general services charge.
• Deferred management fee (DMF): a fee deducted when you leave, usually a percentage that builds each year up to a cap.
• Exit entitlement: the amount paid to you or your estate when you leave, after fees and costs are deducted.
• Disclosure document: the information an operator must give you before you sign, under state law.
• Cooling-off period: a short period after signing when you can usually withdraw from the contract.
• Residents' committee: a group of elected residents who represent residents in dealings with the operator.
• Serviced apartment: a unit where meals, cleaning and some support are included for a higher fee.

Thinking about the long term

A retirement village decision is best made with the long term in mind. Think about how long you expect to stay, what would happen if your health changed, and what your partner would do if you needed to move into aged care. Ask how the village supports residents to receive care at home, how quickly exit entitlements are paid if someone moves to aged care, and whether the operator offers any priority access to a nearby care home.

It also helps to think about your estate. Exit fees and the timing of exit payments affect what your family receives, so talk with your family and your lawyer about how a village contract fits with your will and other plans.

When things go wrong

Most residents enjoy village life, but disputes can arise about fees, maintenance, village rules or redevelopment. Raise problems early, in writing, and work through the village's internal dispute process and your residents' committee. If that doesn't work, your state regulator can provide information and, in some states, mediation, and the state tribunal can make binding decisions. Keep copies of every document and letter.

Rental retirement villages

Not every village requires a large ingoing payment. Some offer rental units, where residents pay a weekly rent and service fee, sometimes calculated as a share of the Age Pension and any Rent Assistance. Rental villages can suit people with limited assets or who want flexibility, but check what services are included and how fees can change.

Key points

Retirement villages offer community and convenience, but contracts are complex. Understand your contract type, add up entry, ongoing and exit costs, know your state's laws and get independent legal and financial advice before signing.