This project investigates the risks for retirement village residents associated with exit from the retirement village and transfer to other accommodation, particularly an aged care facility.
The intended beneficiaries of the project are senior citizens considering retirement village living (and their families). Any RV resident might need aged care accommodation before they die; no-one knows if it will be them.
We will investigate the risks both in terms of the likelihood of needing to transfer from a retirement village accommodation to an aged care facility and in terms of the range and severity of the problems that may arise when doing so.
We will analyse the features of retirement village contracts and industry practice in terms of payments to departing residents, (e.g. fees extracted, capital gains etc), possible delays in getting the money and reduced ability to afford aged care accommodation. We will analyse the regulatory environment for retirement villages and aged care facilities and how it varies across jurisdictions within Australia (with a particular focus on NSW and Vic) and the implications of this for consumers. We will analyse the future costs of aged care accommodation.
We will produce and disseminate financial literacy material aimed at consumers and their families, and at legal and financial advisors. We will evaluate the effectiveness of the financial literacy material we produce.
There are various financial and other risks associated with the relocation from retirement villages to aged care facilities. The vast majority of RV residents leave RV accommodation due to either death or ill health / disability.
The project will allow consumers, their families and advisors to be aware of these risks when choosing between the various retirement village units and contracts that may be available.
The outcomes we expect from the project are better informed retirement village entrants, and pressure on retirement villages to provide a better deal, resulting in better access to aged care.