Mum and Dad are not coping at home – what happens next?

Just this week, I spoke to a 75-year-old woman who, after losing her husband, sold her home and moved into a retirement village she had driven past for years but never looked beyond the gates. She couldn’t be happier. She loves the community and has enough funds left over from the sale of the home to cover any future aged care needs. At 75, she is right on the average age for people moving into a retirement village.

The journey into retirement housing often begins with independent living in a retirement village. Some residents then move into a serviced apartment, where they receive light support such as cleaning and meal services. As needs increase, additional home care services may be added, similar to those provided under My Aged Care packages. For about 60% of retirement village residents, a move to full-time aged care will be necessary, with the average age for this transition being 86. Out of the 30 retirement villages on the Northern Beaches, seven are co-located with aged care facilities, while for others, it makes sense to consider what is available nearby.

But what if your parents are in their 80s, have put off downsizing, and are not coping at home – even with home care support? Is it too late to move to a retirement village?

If the need for support is high, one option may be to move into an assisted living unit – an apartment or community offering support for people who need help with daily tasks but still want to maintain their independence. This type of retirement housing often exists as part of a larger retirement village, but working out where to look is not always straightforward.

On the Beaches, nine villages offer assisted living. In some cases, only a small percentage of the total units offer these services, while in other villages, all units may be serviced.

The costs involved in assisted living can be significant. Deferred management fees can increase to 35% of the purchase price over time, with an initial fee from day one. Weekly service fees – which cover cleaning, laundry, and 24-hour emergency call services – can be around $700. Purchase prices range from $400,000 to $1 million, and some villages require an assessment by a case manager before accepting a new resident. Additional costs may apply for home care services or visiting health professionals.

Some operators offer pricing models where a higher upfront payment allows for a full and fast refund if the money is needed. This can be a good option for those anticipating a shorter stay and may also have positive effects on Age Pension eligibility.

Pricing options vary, so it’s essential to request a “Disclosure Statement” upfront. Set by the NSW Department of Fair Trading, this outlines all associated costs and must be provided if you ask. So make sure you ask!

Choosing the right assisted living option requires careful planning. If you wait too long, availability may be limited, and decisions may need to be made quickly. It’s always advisable to visit villages, review disclosure statements, and make sure you get financial and legal advice before making a decision.