Its an important decision you need to make sooner rather than later- Choosing a retirement lifestyle
Choosing where and how you live is a big decision, and one with many implications. Will you sell the family home or retain it? Will you downsize to something more manageable? Could you live with family members? Is a retirement village going to offer the lifestyle you desire? Will you need to go into an aged care facility in the future?
If you are in, or nearing, retirement you might be considering whether you want to stay in your current accommodation or look for something to suit your needs as they change over the coming years.
If staying home is your goal – you need to assess these things sooner rather than later. Age has a tendency to creep up on you.
If it is your strong desire to stay in your home you need to consider if it’s going to suit you as you age. Naturally, your body and mind will start to slow. You must consider if your current home is set up for that. Do you have stairs? is your bathroom easily accessible? Will ongoing maintenance be an issue?
You could obtain an assessment from an aged care occupational therapist who may suggest some modifications to make it more comfortable and appropriate as you age.
You may also wish to consider if your house is suitable for others to live there. As a part of your residential plan, you may wish to invite other family members to live in to assist you.
A Retirement Village
Retirement villages vary in size, facilities and cost. It is a popular option as they offer a community-based environment of similarly aged and like-minded people. Getting older can be lonely, so a community that offers activities and excursions can help keep your mind and body active.
Owning your own property while reducing the need to maintain your own home gives you the best of both worlds.
The costs of retirement villages will vary. The cost may be a lump sum ‘purchase’ or possibly a rental agreement. Some you may need to split any profits made on the unit when you leave and there may be a deferred management fee and refurbishment expense deducted from the refundable amount.
Residential aged care
In residential aged care, you have a much smaller space – you may have your own room or share a room. This is a much different experience from the other two options, but the high level of care offered may necessitate it.
It’s important to understand all the fees in residential aged care, how is it structured, and what your estate will receive when you pass. Generally, aged care facilities will have a published price and a daily accommodation payment. Some may have additional services at an additional cost. As each provider is as different as your personal requirements, take to time to visit some in your area to gauge what would suit your needs.
Having a plan that you have discussed with your loved ones can help you feel more in control of your situation. Before it becomes an issue, having a plan in place will reduce the stress around your living arrangements.
Choosing your retirement lifestyle will be heavily impacted by emotional and financial decisions so don’t rush into a decision without carefully considering your options. If it’s time to consider your retirement lifestyle and accommodation needs, we can discuss with you the options or you can read more on the My Aged Care website.
Authorised Representative of RI Advice Group Pty Ltd ABN 23 001 774 125 AFSL 238429. The information provided in this document, including any tax information, is general information only and does not constitute personal advice. It has been prepared without taking into account any of your individual objectives, financial situation or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser.