A new retirement village fees calculator is set to take some of the confusion out of retirement village costs.
The Macquarie University’s retirement village fees calculator is the first of its kind in Australia, and works by by taking all the different fees from a prospective retirement village, such as entry fee, ongoing fee, and exit fee, and calculates a simple equivalent monthly rent.
This allows seniors who are looking at moving to a retirement village to compare them more effectively and make the best financial choice.
Ian Yates, Chief Executive of COTA Australia believes the calculator will make the process of choosing simpler for senior Australians.
“It is very important that older Australians are equipped with all the necessary information and understanding so that they can make a fully informed decision when choosing how and where they want to spend the later stages of their life,” he said.
Yet while he thinks the calculator will be a valuable resource, Yates also said that more work needs to be done to simplify the contracts and fee structures in the industry.
“Better disclosure regulation is also needed to ensure people can easily obtain clear and detailed information at an early stage to put into the calculator,” he said.
“Too many older Australians still find themselves in the dark and confused when it comes to retirement village contracts and often face nasty surprises in fees throughout the term of the contract or when they relocate or leave.
“This has been an issue for three decades and its time it was fixed.”
The Macquarie Retirement Village Fees Calculator can be found here.