25 March 2019

Retiring at home or move to a Retirement Village?

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By Michael Rambaldini

Director |Certified Financial Planner |Aged Care Professional

Making tough decisions in life is inevitable. But doing it now rather than later can make a difference and  have an impact on the results.

It is difficult enough accepting the reality of aging. With this realisation brave choices have to be made to secure some quality of life. After all, it is you who will need to make the decision. This is possible when you are aware of the many changes that will accompany you in the next stage of life.

One of these decisions to make is whether to retire at home or choose to move to a retirement village. Both of these choices would entail certain costs, advantages and disadvantages for you and your support group.

Living preferences for the elderly should be considered and must be well-prepared for.

Should you decide to retire in a retirement village, you will most likely encounter some of the following  terminology and costs:

  • Purchase Price – usually called an entry payment or entry price for buying into the village.
  • Deposit – In the event that you move in to a retirement facility, you’ll need a deposit. It can be refundable depending on the contract or lease if you change your mind within a specific time.
  • Maintenance Fees – These are monthly charges and running costs for the facility to operate such as upkeep  etc.
  • Stamp Duty – This is tax and is usually paid if you have a strata or community title.
  • Vacating fee – This is also known as an exit fee which will be calculated when there is re-occupancy of your unit or home.

On the other hand, if you opt to live and stay in your home when you retire, you may also need to consider home renovations that will of course cost some money. These renovations could be related to your comfort such as changing door sizes or making a larger bathroom or accessible pathway to your bedroom.

Overall, you need to be clear with your preferences and you have to let your family or support group know how important this is for you.

If you would like to know more about how to make a transition to a comfortable retirement, please visit our website at www.verante.com.au.

The author is an employee of Verante Financial Planning in Castle Hill, Corporate Authorised Representative of Magnitude Group Limited, Licence No 221557, Magnitude Group Limited ABN 54 086 266 202.

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