One of the biggest decisions made later in life is whether or not to remain in the family home.
Sometimes the issue is taken out of the hands of an older couple or a person living alone, through a family decision, perhaps for health reasons. Sometimes the thought of another winter in a large, older-style home is motivation enough to consider downsizing to a smaller, low maintenance property, or a retirement village, which is an option for some.
There are big issues to consider given that, for most people, their home is their largest investment. The financial implications of continuing to live independently and paying for necessary services or moving into a retirement village will depend on individual circumstances. It’s important to consider all the costs and the issues before any pressure comes on to make a decision.
The Commission for Financial Capability (previously known as the Retirement Commission) has information on its website about some of the personal, legal and financial implications to consider before settling on a retirement home.
They have also produced a booklet ‘Thinking of living in a retirement village’ that provides information for intending residents, their families and existing residents of retirement villages. It includes practical tips to help you consider your personal circumstances motivations for choosing retirement village living over other options. It also aims to help you understand some important legal concepts and terms used in retirement village contracts and make you aware of some financial implications of living in a retirement village.