Retirement Living

Funding Your Retirement Lifestyle and Planning for Frailty Years

Retirement Living Costs: How Much Is Enough?

One of the most common questions we receive about retirement planning and retirement living is, "how much is enough?"

Answering this question is challenging because it varies greatly depending on individual circumstances. It relies on factors such as lifestyle aspirations, family commitments, and health considerations.

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A Snapshot of the Retirement Living Landscape

Recent statistics indicate that people are choosing to enter retirement living later in life. Various reasons contribute to this trend, including the availability of subsidized home care services for individuals aged 65 and above.

Key insights from the 2020 PwC Australia/Property Council Retirement Census, the largest annual survey of the retirement living sector, reveals the following:

64% of residents are female, and 58% of units are occupied by single residents.
The average age of new residents is 75, while the average age of all residents is 81.
Residents typically live in retirement villages for an average of 8-9 years.
The average time from vacant possession to settlement is 261 days.
A significant trend is emerging, with 90% of residents choosing to partially or fully pay for home care services, indicating a desire to age-in-place and support their own lifestyle needs rather than relying solely on government-funded assistance.

At Phillips Wealth Partners, we understand the importance of financial planning for retirement living costs. Our team of experienced advisors can assist you in creating a personalized retirement plan that aligns with your aspirations and accounts for potential frailty years. We'll help you determine the financial resources needed to support your desired retirement lifestyle and make informed decisions for a secure future.

Contact us today to explore how we can guide you through the complexities of retirement living and plan for a financially comfortable future.

Reference to the full report: campaign.propertycouncil.com.au/retirement-census-2019

"You need to be able to afford to go into a retirement living arrangement. It is important to do your numbers and do not over commit". Craig Phillips

Retirement Living Cost

When it comes to living in a retirement village, it's essential to be mindful of your financial situation and avoid common pitfalls. Here are some helpful tips to keep in mind:

1: Short on cash

Living in a retirement village differs from living at home. Remember that if you run out of cash, you won't be able to use a reverse mortgage.

Tip: Create a careful budget and avoid overspending. Seek professional advice to ensure financial stability.

2: Selling time:

When the time comes to leave the retirement village, selling your unit may take longer than expected.

Tip: Inquire about the average duration of unit sales in the village and consider how this could impact your plans.

3: Budgeting:

You need to know how much money is going IN and OUT the door.

Tips: Take advantage of various budgeting tools available. Ask us about our interactive web and app-based tool that provides a comprehensive view of your assets, income, and financial documents like insurance and estate planning.

Contact Phillips Wealth Partners to organise a demonstration.

4: Frailty years.

When transitioning to a retirement living community, it's vital to plan ahead for the future, including the possibility of needing 24-hour supportive care in what we refer to as the "Frailty Years." Consider the time it may take to receive your funds upon leaving the retirement community.

Rule of thumb, if budgeting to have enough money in the bank to cover a full year of expenses.

5: The upside to downsizing

Take advantage of the superannuation downsizing opportunity. If you're aged 55 or older and sell a property that has been your main residence for 10 years or more, you may be able to contribute some of the proceeds to your super account, unrelated to your contribution cap.

FURTHER READING:

Case studies on buying a retirement village: Funding your retirement lifestyle as well as preparing for the frailty years

Top things to know about a retirement village: Retirement Village Entry - Top 10 things to know

Retirement Living

Retirement Living Costs: How Much Is Enough?

A Snapshot of the Retirement Living Landscape

"*You need to be able to afford to go into a retirement living arrangement. It is important to do your numbers and do not over commit**". Craig Phillips*

Retirement Living Cost

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