Retirement village entry independent financial advice

Retirement village entry independent financial advice by Christine Hopper

Why retirement village entry independent financial advice

Wise seniors buy retirement village entry independent financial advice as part of their consideration of moving into a retirement lifestyle community village.

Buying into a retirement lifestyle community village involves buying the right to occupy a residence and participate in the activities of that community. The flip side of those rights is the responsibility to contribute to the costs of the community. You would contribute to both the building and set up costs of your retirement lifestyle community and to the ongoing running costs.

The cost sharing arrangements for your retirement lifestyle community are set out in the Resident Agreement Contract.
The Resident Agreement Contract is a thick legal document. Before you sign any legal document, you should make sure that you understand how it impacts you. A lawyer could explain the clauses in the Resident Agreement Contract that define your rights and responsibilities as a resident of that retirement lifestyle community.

But you need retirement village entry independent financial advice to cover the financial aspects. The fees and charges for living and later leaving, a retirement lifestyle community are written in the Resident Agreement Contract. But you need to translate these words into dollar amounts to understand what you might be paying in real money.

Remember that if you have a superannuation pension or any significant assets in addition to your home then you would not be full rate Age Pensioner. Retirement village entry independent financial advice before you sign a Resident Agreement Contract could avoid a surprise reduction in your Age Pension.

What is retirement village entry independent financial advice

Retirement village entry independent financial advice involves reading all of the money related clauses in the Resident Agreement Contract and illustrating the amounts that you could be required to pay.

The Resident Agreement Contract would show the dollar amount of the ingoing payment for your chosen independent living residence or serviced apartment. Your initial rate of service fee would be shown in dollar terms. You would expect to find the formula for increasing the service fee amount as another clause in your Resident Agreement Contract.

Many smaller charges could be defined in your Resident Agreement Contract. Fees will be charged for issuing you with keys to communal areas, garages and gates. If you lose your keys you will have to pay for replacement keys or to have your apartment unlocked to retrieve your keys.

Departing permanently from the retirement lifestyle community has lots of fee opportunities. The costs of refurbishing your residence and finding a new resident might be charged to you. The service fee for your apartment could continue to be charged to you until a new resident takes over your apartment.

Then your share of the costs of establishing the retirement lifestyle community could be deducted from any ‘resale amount’. These deferred management exit fees can be substantial in dollar terms. The exit fees are defined in the Resident Agreement Contract but your independent financial adviser can illustrate the dollar amounts.

Your financial adviser could illustrate the amount you might get back on leaving the retirement lifestyle community after different periods as a resident.

Income aspects of retirement village entry independent financial advice

You need to know what financial resources you will have to be sure that retirement lifestyle community is affordable.
As part of Retirement village entry independent financial advice, your adviser would illustrate how much Age Pension and investment income you could expect to receive after you have moved into that retirement lifestyle community.

The money that you have left over after selling your former home and buying into a retirement lifestyle community would be a financial asset. Centrelink could reduce your Age Pension on account of your financial assets.

If a single senior has more than half a million dollars in financial assets then she might not get any Age Pension. No Age Pension means no Pensioner Discounts on utility bills or Municipal Council rates. She might then need to use some of her capital to pay her regular living costs including the service fee for her retirement lifestyle community.

Your financial adviser could estimate your Age Pension. If you would no longer qualify for an Age Pension your adviser could inform you about alternative Centrelink health concession cards for seniors.

You will need to pay your retirement lifestyle community service fee each month in addition to your personal living costs. An independent financial adviser could help you check what expenses are covered by that service fee and what costs you must pay separately.

If your estimated income is well over the regular costs of living in your preferred retirement lifestyle community then you can confidently buy the lifestyle of that retirement lifestyle community.

Using some of your capital to provide for your lifestyle expenditure might be suitable for a senior. Discuss this carefully with your financial adviser before you sign that Resident Agreement Contract.

Remember that exiting a retirement lifestyle community early can be very expensive. An initial choice of a more modest retirement lifestyle community could have a calmer life and a happier ending.

When to get retirement village entry independent financial advice

Retirement village entry independent financial advice costs money. But signing up for a retirement lifestyle community place that you cannot afford is heartbreaking.

The time for retirement village entry independent financial advice is immediately you are serious about entering that retirement lifestyle community. For meaningful retirement village entry independent financial advice you need an estimate of the value of your current home and your other assets.

Independent financial advice is most useful before you sign up to sell your current home or buy into a retirement lifestyle community. Considering all of the financial aspects at the start could spare you from an expensive and unhappy move.

Where to find retirement village entry independent financial advice

Help is available. Christine at Financial Care Services understands the retirement lifestyle community fee structures and the DVA and Age Pensions assessments.

A consultation with Financial Care Services helps you understand your potential retirement lifestyle community costs for living in and finally leaving a retirement village residence.

Financial Care Services is licensed to offer investment strategy advice and to assist you to invest. But first you just need a retirement village entry independent financial advice consultation to check that entering a retirement lifestyle community would be a smart move for you at this time of your life.

Financial Care Services is an independent financial advice practice. Financial Care Services does not base fees on the value of your assets nor do we accept any commissions or payments from other service providers. Our focus is to help our clients use their resources to finance appropriate accommodation and support services for their senior years.

Call Christine on 03 9808 0338 to make an appointment for a retirement village entry independent financial advice consultation. Please email your enquiry to receive a Financial Care Services Financial Services Guide and Lifestyle Community Retirement Village Entrant Personal Financial Facts.

Assistance with Centrelink forms is available to clients of Financial Care Services. Christine could help you inform Centrelink of your move to retirement lifestyle community living village. If moving home disqualifies you the Age Pension Christine can help you apply for a Health Card.

Who should come to the retirement village entry independent financial advice consultation meeting

The seniors considering retirement lifestyle community living are the focus at an independent financial advice consultation. The client is the potential retirement lifestyle community resident. This change of home and community is a major decision. Therefore the client needs her family’s support in decision making.

Your Power of Attorney and/or adult children are welcome to come to the consultation at Financial Care Services.

If they were at the retirement village entry independent financial advice consultation when the money aspects were explained and illustrated with dollar amounts, then later they cannot say “Mum and Dad would never have signed up to this retirement lifestyle community is they had known what was involved.”

Christine can help you discuss with your family any concerns you have about living alone. You can buy personal support services to help you with dressing and showering. Together we can discuss the level of personal support you might need in the next few years.

Moving into a retirement lifestyle community village could remove any worries about gardening and external maintenance. You can purchase home help for regular cleaning of your new retirement lifestyle community.

To start your retirement village entry independent financial advice please contact Christine for the Financial Care Services ‘Lifestyle Community Retirement Village Entrant Personal Financial Facts’ form. You will also receive the Financial Care Services Financial Services Guide.

Financial Care Services your independent financial advisor

Help is available. Christine at Financial Care Services understands the DVA and Age Pension assessments. Christine can help you discuss the level of personal support that you want now and what you might be needing in five years.

A consultation with Financial Care Services helps you understand your potential retirement living costs together with the DVA and Centrelink implications of selling the current home and rearranging your assets.

Financial Care Services welcomes clients from Melbourne and beyond.

Call Christine on 03 9808 0338 to make an appointment for a consultation

Assistance with completing the Centrelink forms is available to clients of Financial Care Services. Christine could accompany a senior to a nearby Centrelink office if you need support to encounter official paperwork.

Arrange an appointment for further confidential, independent and professional advice about DVA, Centrelink, lifestyle or financial issues please contact Christine Hopper.

Disclaimer: The information contained in this website is of a general nature only and does not constitute “financial advice”. You should obtain your own personal financial advice before investing any money or moving in to any retirement village, lifestyle community or aged care facility. Financial Care Services is licensed to provide financial advice to individual clients based on their personal situations. © 2017 Financial Care Services Pty Ltd. All rights reserved.