Potential Poverty Trap in a Retirement Village

Retirement Village Poverty Trap

The so named 'retirement village poverty trap' is where the $ value or your refundable amount on departure is so diminished over time by inflation, rising property prices and rising nursing home entry costs that it places you at a point where:-

1. You do not have sufficient money to leave the village and re-enter the property market.


2. You do not have sufficient money to enter a nursing home of choice, you have to rely on a government funded aged care placement.

See graphic below -