Q and A - Retirement Villages

Welcome to Your Retirement Village Q & A

If you’re exploring the idea of moving into a retirement village in Australia, chances are you’ve got a few questions (or maybe a lot of them!). From costs and contracts to lifestyle and legal rights, there’s a lot to think about — and some of it can get confusing pretty quickly.

That’s why we’ve put together this comprehensive FAQ-style guide to retirement villages. It's designed to answer your most common questions in clear, everyday language, so you can make confident decisions for yourself or a loved one.

1. What Exactly is a Retirement Village?

A retirement village is a purpose-built community designed for older Australians, generally aged 55 or over, who are still independent and active but want to enjoy a more manageable lifestyle. These villages usually offer a mix of independent living units or apartments, shared facilities (like clubhouses and gardens), and social opportunities.

2. How is a Retirement Village Different from Aged Care?

Retirement villages are for independent seniors looking for community, security, and low-maintenance living. Aged care homes (formerly nursing homes) are for older people who need full-time care due to health or mobility issues. You don’t receive medical or nursing care in a retirement village.

3. What Types of Legal Agreements Are Available?

Common legal arrangements include:

• Leasehold: Long-term lease, often with exit fees.
• Loan Licence: You pay an ingoing contribution for the right to occupy the unit.
• Strata or Freehold: You own the unit, often within a body corporate.

Each has pros and cons, and it’s essential to get legal advice before signing any contract.

4. What Are Deferred Management Fees (DMFs)?

DMFs are exit fees paid when you leave the village. They’re usually a percentage of the entry price or resale value, accrued over time (e.g., 2–3% per year for up to 10 years). Always check how they’re calculated — they can significantly impact how much money you (or your estate) get back.

5. What Ongoing Fees Will I Pay?

Most villages charge weekly or monthly fees to cover things like gardening, maintenance, insurance, and facility use. These are sometimes called General Service Charges. Check whether these fees are fixed or variable — and ask how often they go up.

6. Can I Use My Age Pension to Help Pay?

Yes, but it depends. Centrelink may treat some of your ingoing contribution as an asset, which could affect your Age Pension. It's wise to speak with a financial planner who understands retirement village rules and Age Pension implications.

7. What Happens When I Want to Leave?

Depending on your contract, your unit may be resold by the operator or on the open market. You may have to wait for it to sell before you get your exit payment. Exit entitlements and fees can vary greatly, so it’s important to understand the terms before moving in.

8. Will I Still Have My Independence?

Absolutely. Retirement villages are built for people who want to live independently but in a supportive community. You can come and go as you please, have visitors, and live your life on your own terms.

9. Are Pets Allowed?

Some villages are pet-friendly, while others have restrictions. Always ask about pet policies — especially if you’re bringing a beloved dog or cat.

10. What About Health Services?

While villages don’t provide medical care, many have visiting health professionals, onsite wellbeing centres, or are located close to hospitals and GPs. Some also offer access to home care services.

11. Can Couples Live Together?

Definitely. Many villages offer one- or two-bedroom units ideal for couples. If one partner needs care in the future, you may need to consider separate arrangements — but many villages work to accommodate couples for as long as possible.

12. How Do I Know if a Village is Right for Me?

Take your time. Visit several villages, talk to current residents, read the disclosure documents, and get independent financial and legal advice. Consider the village culture, location, fees, facilities, and contract terms.

13. Are There Protections for Residents?

Yes. Every state and territory has retirement village legislation to protect residents. Operators must provide a disclosure statement and contract before you sign anything. You usually have a cooling-off period too.

14. How Much Does It All Cost?

Costs vary dramatically depending on location, contract type, village operator, and unit size. Entry contributions often range from $250,000 to $800,000+, with ongoing fees between $400–$900 per month, plus any exit fees.

15. Can I Make Changes to My Unit?

Minor modifications (like grab rails) are usually fine, but major changes require approval. This is especially relevant in leasehold and licence arrangements, where you don’t own the title.

Wrapping Up

Retirement villages can offer a wonderful lifestyle — but only when you fully understand what you’re signing up for. We hope this Q&A has answered some of your burning questions and helped you feel more confident about your next steps.

As always, we recommend seeking professional advice before making any major decision. And if you’re ready to explore further, head over to our detailed pages on retirement village fees, legal structures, contracts, and planning guides.

Your retirement should be rewarding, enriching, and empowering — and the Silver Lifestyle is here to help make that happen.