Retirement villages were once synonymous with independence. They were designed for active retirees seeking a lifestyle change – communities built around swimming pools, bowling greens and clubhouses, with the added appeal of being able to lock up and travel the country, or the world, at a moment’s notice.

That model still exists, but it is no longer the full picture. Today, many villages offer two distinct forms of accommodation: independent living units and serviced apartments. Alongside them, a newer category has emerged – often described as “care communities”. These villages are designed entirely for ageing in place, typically with apartment-style living, and they blur the line between independent living and residential aged care.

This evolution reflects a deeper shift in what people want from later life. The decision to move is often not primarily about cost, although finances do matter. More often, it is about preserving dignity, maintaining independence and, in many cases, keeping couples together when one partner needs care and the other does not.

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From Serviced Apartments to Care Communities

It’s an evolution of the serviced apartments which are usually located within the main building, close to dining rooms, lounges and shared spaces, offering a hybrid model: your own front door and private space, combined with support for the tasks you no longer wish – or are no longer able – to do yourself. In care communities, that same philosophy extends further, with all homes designed for ageing and in some cases dedicated memory care and palliative care units and on-site doctors and nurses.

Understanding the Costs: Ingoing, Ongoing and Outgoing

When it comes to the cost of moving to a Care Community the simplest way to understand it is to break it down into: ingoing, ongoing and outgoing.

The ingoing contribution is the upfront amount you pay to secure your home often on a leasehold or license contract. There can also be transaction costs like contract preparation costs and title registration fees – they not normally significant but it’s good to know what to expect.

Ongoing fees typically cover services such as meals, cleaning, maintenance and access to shared facilities. Because care communities provide more support, these fees are generally higher than independent living in a retirement village. The ongoing fee is often called a general service charge, make sure you understand how much it is and what is included.

The general service charge is paid by all residents and covers things everyone has access to. Additional Services are offered on top on a user pays basis – if you are going to use these make sure you include them in your ongoing budget.

Then there are the outgoing costs. Because Care Communities are technically retirement villages exit fees are standard. The exit fee can be anywhere between 0% to 100% but around 35% is typical. When it comes to getting your money back you will normally find that there is a guaranteed buyback if your apartment does not sell within a set period, typically between three and 18 months depending on the community.

Age Pension and Asset Exemptions

The ingoing amount you pay to a Care Community determines whether you are classified as a homeowner for Age Pension. As a general rule if you pay more than $258,000 you are considered a homeowner. This means the value of your home is exempt from the assets test and you will not qualify for rent assistance.

Pay less than $258,000 and the opposite is true – you are a non-homeowner and can qualify for rent assistance. Rent Assistance can add up to $219 per fortnight on top of your pension. For some, this can make a meaningful difference to cash flow, particularly when ongoing fees are higher due to the level of services provided.

The two-year aged care asset test exemption on the family home can also apply when moving into a retirement village to access care – it is often overlooked but can provide valuable flexibility during the transition.

Flexible Support and Continuity of Carers

Care is, of course, central to the decision. If you are already receiving home care you can bring your Support at Home package with you, or the operator may assist you in navigating the process of applying for one.

The experience of receiving care in this environment can be markedly different from receiving care in your family home. In the community, access to carers is often more flexible. Rather than being limited to a single daily visit – and potentially paying for a minimum two-hour shift – care communities offer support in increments as short as 15 minutes. That can make a substantial difference, not just to cost efficiency but to the quality and responsiveness of care.

There is also continuity. Carers are typically onsite and consistent, familiar faces, a better understanding of individual needs, and the ability to respond quickly can all contribute to better outcomes.

In some cases, the financial model itself supports this approach. Because care communities often derive their primary profit from accommodation, services such as meals, cleaning and even care may be provided on a cost-recovery basis. Compared to paying privately – or funding services entirely through a Support at Home package – this can stretch your care dollars further and ease pressure on day-to-day cash flow.

Practical Questions to Ask Before You Move

Still, not all communities operate in the same way, and the details matter. Practical questions should form part of any decision-making process. When you press the call bell, who responds? Is there staff onsite, or does it connect to emergency services? If it is the latter, are there systems in place to ensure access if you cannot open the door?

What happens if your care needs increase? Can additional services be brought in, and at what cost? And under what circumstances might you be asked to move to another level of care?

These are the questions that speak to the real reasons people make the move – safety, access to care and for many a desire to avoid a move into residential aged care. The decision to move to a care community is rarely just about money. It is about having a front door of your own, the freedom to do what you can and want to do, and the reassurance that support is there for the rest. For many, that balance – independence with a safety net – is what defines a good life in later years.