Top tips to get it right

1. It’s the vibe

In real estate the advice is normally “location, location” and proximity to family and friends and amenities is an important aspect. But a significant factor of your enjoyment in a retirement community will be the time spent with other residents. Get a feel for the community by attending open days and other village events.

2. Understand your contract

Your contract sets out your rights, responsibilities and costs. It is vital you understand it so there are no surprises down the track. It will potentially also affect your pension entitlement and eligibility for rent assistance.

3. Crunch the numbers

Retirement community costs vary widely. Understanding the costs and comparing alternatives is easier if you break it down into: the ingoing, the ongoing and the outgoing. Some communities offer different payments for the same unit – do your sums to work out which is best for you.

4. Budget

In addition to the cost of living in the community you will need to factor in your personal expenses like utilities, food and entertainment. If you are going to receive extra services such as meals, domestic help or care, make sure you include these on top of the other charges and then add occasional expenses such as holidays and Christmas so you know you can afford it.

5. Who Cares?

Understanding what care can be provided in your new home, how you access it and how much it is likely to cost is a good idea even if you don’t need it right this minute.

6. Seek Advice

Crunching the numbers, the impact on your pension and other entitlements, cash flow, home package fees and the amount you will receive after you leave the community can be complicated. An adviser who specialises in this area will help you get it right.

7. No Regrets

“My only regret is not moving here sooner” is the most common regret for retirement community residents. For others the regret is not understanding the costs and only realising what they are years later. Doing your research, crunching the numbers and seeking advice means that you can enjoy community living sooner and there are no regrets.

Rachel Lane is the principal of Aged Care Gurus and co-author with finance commentator Noel Whittaker of the book Aged Care Who Cares.

The handy guide answers questions such as: Where will you live as you age? How will you go about finding the right place? How much will it cost?

Lane and Whittaker have pooled their resources to produce a guide to help steer you towards the best possible outcome.

Now in its third edition, the easy-to-read guide examines some of the legal and financial implications of accommodation options including residential aged care facilities, granny flat arrangements, retirement villages, over-55s communities and caravan parks.