Are Retirement Villages part of the solution for Oz's ageing population?

MEDIA RELEASE – VILLAGE SOLUTIONS AUSTRALIA

20th January 2015

Are retirement villages part of the solution for Australia’s ageing population?

Many people are skeptical about the cost/benefit ratio of retirement villages.

Do they put more strain on the Australian government or do they reduce costs?

A recent study, conducted of all retirement villages in Australia shows that these villages save the government more than $2 billion and provide homes for more than 180,000 seniors.

Village Solutions Australia congratulates the Property Council Retirement Living Division for commissioning Grant Thornton to a study, “The National Overview of the Retirement Living Sector”. It has been acknowledged that Retirement Villages in Australia save the government more than $2million and provide homes for more than 180,000 seniors.

How do these villages save the government money? With increased independence for seniors living in retirement communities means a higher quality of life (which in turn means less physical and mental illness) and the self-funded nature of the villages themselves significantly reduces the financial strain of senior care on the government, and by extension, the Australian people. Most of the savings come from delayed entrance to government-funded care facilities. Because seniors can stay longer in village communities and enjoy life with clubhouse facilities, they are less likely to enter a facility funded by the government until it is absolutely necessary.

Other public systems also benefit from all the good that retirement villages provide. Healthcare, for example, is in lower demand, as those in retirement villages visit the hospital less and have shorter stays when they are admitted due to the support of the retirement community. They also require fewer general practitioner visits and have much more stable mental health, due the companionship.

The building and operating of these villages creates jobs, adding nearly $3 billion each year to Australia’s GDP.

The range of care options available at retirement villages make it easier for seniors to age in place and many believe that they are the best solution to one of Australia’s major challenges: providing affordable living spaces to Australia’s ageing population.