Retirement Village Financial Trap

Retirement Village Financial Trap - The deferred fee, inflation, rising property prices, rising nursing home entry costs plus village exit costs will devalue over time the refundable amount due to a resident on exit from a retirement village.

This impact of the deferred fee, loss of earnings, inflation etc. on the amount to be refunded to a resident on departure from a village is something many will have to deal
with. A change in circumstances without further financial resources could leave a person in a financial position they did not envisage on entry.

Additional capital resources may be needed to meet the cost of any change in circumstances – ie: choose or need to leave the retirement village, re-enter the property market,
meet the cost of a nursing home bond to enable entry into a nursing home of choice.

The following graph shows how quickly a no u-turn situation arises when there is a steadily rising property market, the ability to make a u-turn because of a change of
circumstances diminishes as each year passes. Many retirement village residents enter a financial trap they did not see on entry as a result of the ever decreasing value of the
amount to be refunded on exit from the village.

This and further issues are discussed at http://www.retvill.net/