Retirement Villages - No Financial U-turn

For many older Australians retirement villages can be a financial disaster by creating a no U-turn situation. The ability to leave a retirement village by choice or a change in circumstance weakens as each year passes due to deferred fees, exit costs, inflation, rising property prices and rising nursing home entry costs.

This can result in a retirement village resident entering a financial trap not forseen or explained at entry by the ever reducing $ value of their original capital base.

The higher the percentage of their total capital base used to pay the entry cost into a retirement village the more certain it will be that they will find themselves financially trapped should a change of circumstance be desired or required.

The following table illustrates what can and is experienced by many of the nations older citizens living in retirement villages.