Forgone Earnings on Village In-Going Amount

Forgone earnings on a Retirement Village in-going amount which has two components, both paid on entry:-

• The Deferred Management Fee


• The refundable amount on exit (aka the interest free loan)

Although there is no actual property ownership in the great majority of these retirement village transactions despite the payment of a commensurate amount as if you were purchasing a title to a property, the earnings forgone and particularly the devaluing effect of inflation, rising property prices and rising nursing home entry costs has a dramatic impact on this capital amount paid on entry but only refunded on exit.

A Ready Reckoner is offered to help indicate the financial impact of a move into a retirement village.

The Retirement Village Ready Reckoner is not an absolute statement of financial outcomes but it is an indicator of outcomes, there are many variations to the arrangements to enter a Retirement Village within Australia and many input variables.

This link will take you to the Ready Reckoner where you can enter your own personal circumstances - CLICK HERE