Retirement Village, Lifestyle Village or Care Home. What's the difference?

The fundamental differences between the three options centre around the independence available to residents, the financial structure, the community environment and the care services available.

Independence

Retirement villages & lifestyle villages offer security and peaceof-mind for independent living. Residents enjoy the use of a villa, townhouse or apartment for themselves, with the opportunity of shared ammenities and social interaction on their doorstep. The key differences of ‘lifestyle’ and ‘retirement’ are usually found in the entry age (lifestyle normally lower), the amount of activities run by staff (retirement will have more) and levels of care available onsite (common in retirement villages).

Contrastingly, care homes (or aged care) cater to those who require assistance to fulfill daily tasks or activities. These facilities are focused on taking care of the individuals basic needs as well as health needs. A ‘Needs Assessment’ would usually be conducted before moving into care, to determine the level of care required, as not all care homes offer all levels, ranging from rest home, to hospital, dementia and palliative.

Finance

Financially, retirement living very rarely offers lucrative opportunities for residents. In retirement villages, the initial price you pay includesthe right to occupy your home anda contribution towards the use of communal facilities. Residents will also pay an ongoing weekly or monthly fee for the running of the village. When you leave, there is normally a 20-30% ’deferred management fee’ (DMF), which comes off the money refunded to you and is kept by the village. Retirement Villages do not normally share capital gains so if you change your mind and want to leave, the general housing market may have shifted in price and your financial ability to purchase elsewhere may have diminished.

Lifestyle villages usually follow a similar financial ORA model as a retirement village, but are more likely to offer you shared (or full) capital gain. Although they make up less than 20% of the village market they are becoming increasingly popular with the younger 55+ demographic. Unlike most retirement villages, care is normally not available onsite. Weekly fees may also be slightly lower than a retirement village as less staff are employed because of the independence of residents.

Fees for care homes are user pays based, although asset-tested. If the resident is under the asset threshold and qualifies for a Residential Care Subsidy then their superannuation is taken as the payment. Otherwise, a resident will pay $1000 - $1200 per week, as a maximum contribution, for a standard room. Some care homes charge a Premium Room fee (eg. for an ensuite or better view) and others offer bigger rooms / additional services with an ORA attached (similar to a village) so an upfront amount is required.

Community

Retirement and lifestyle villages normally offer a strong social / community environment for their residents. This may include ammenities such as a gym, swimming pool, bowling green, lounge, bar, cafe and, even a cinema.

These shared facilitates are a great drawcard especially where a retirement village organises activities and social events as part of a weekly programme. Lifestyle villages, by contrast, may have the same ammenities but normally leave social events to the instigation of the residents. Any recreational centres, gardens and grounds are also fully maintained by the operator - another plus for the retiree / life-styler.

Care homes will also offer a degree of community and social activity, however, their focus is on managing and maintaining an individuals health and wellbeing.

Continuum of Care

More and more retirement villages are offering care facilities onsite with a full continuum of care available (rest home, hospital and dementia), or assisted living options by way of serviced apartments and care suites. Serviced apartments usually have care packages available for purchase as your needs change while Care Suites have the ability to offer broader levels of care. Both require an ORA.

Villages may also have a 24/7 call bell system within units in the event of an emergency - sometimes as part of the offering or contracted out to a 3rd party. Lifestyle villages stereotypically have very little care assistance onsite.

Individual care homes will provide one or more of the levels of care. Some only specialise in one level of care, so, if health needs are likely to change, you would need to look at further care options.

Ultimately, all retirement living offers unique opportunities for residents depending on their needs and preferences. The key is to do your research first, visit the home yourself and contact us with any questions you may have.