Deferred Management Fee

The Deferred Management Fee is paid at entry to the operator as one of two components of the entry price to the retirement village.  

The retirement industry and particularly retirement village operators use the terminology that you pay the deferred management fee only on departure. Village operators like this because it sounds better and sells better when something is way off into the future.  The retirement village industry creates an illusion by naming it an in-going amount on the way in then naming it a deferred management fee on the way out. The deferred management fee has a reducing refundable amount but this period can be as short as 3 years after entry.  The inescapable truth is that you only ever write one cheque, the one you write on the way in.