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1300 COMLAW (266 529)

02 4704 9991

Suite 11, 354-360 High Street, Penrith NSW 2750
PO Box 1835 PENRITH NSW 2751

Retirement

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5 Things You Need to Know About Moving into a Retirement Village

If you are considering moving into a retirement or aged care facility, here are five things you need to know:

  1. In most cases you will be required to pay what is known as a refundable accommodation deposit. This is also known as an ‘accommodation bond’ or an ‘ingoing contribution’. All facilities in New South Wales are required to publish their required deposit amounts on a Government website and you should look at this before considering each facility.
  2. In addition to your initial deposit, it is likely you will have to pay ongoing fees. This will cover things like your use of the services in the facility such as buses and community centres. In addition to this you will usually have to pay for the water, electricity and other utilities you use on a user-pays basis.
  3. The amount you will have to pay is based on your income and assets. Most people think you need to sell the family home to fund an ingoing contribution into a care facility. This is not correct and in some cases you may be able to keep your home. You should always take the advice from a financial advisor who is skilled in this area and has a thorough knowledge of any implications a move will have on your aged care pension, if you are receiving one.
  4. In some facilities there may be a ‘departure fee’ payable if you leave the facility within a specified time after you move in. This means you have to be sure you want to make the move before you dive in.
  5. You may need to be assessed by an Aged Care Assessment Team before you are able to move into your facility. This will involve a number of tests, but you shouldn’t be nervous. The process is designed to make sure you have all of the facilities you need in your new home.

Making the decision to move from a family home into a retirement or aged care facility is a big one. It is absolutely critical you take the advice of a lawyer to discuss the contract/accommodation terms and a financial planner who can talk to you about how you can structure your assets so they work best for you while you make the transition.