The ABC’s 7.30 program recently aired an investigative report highlighting concerns from retirement village residents and their families about financial exploitation within the retirement living sector. The report revealed hidden exit fees, refurbishment costs, and opaque contracts, drawing criticism from residents and experts. Joan Green and Ruth Anderson were among the residents featured in the program.
They faced exorbitant exit fees and excessive refurbishment costs, leaving them with only a fraction of their original investments. Federal MP Rebekha Sharkie, a vocal advocate for reform in the retirement living sector, reiterated her calls for tighter regulations. She compared the financial practices of some retirement village operators to elder abuse, describing the situation as heavily skewed in favor of corporate profits.
However, Daniel Gannon, Executive Director of the Retirement Living Council (RLC), the peak body representing the industry, expressed disappointment in the portrayal of retirement villages. He sought to correct what he considered to be an overly negative perception of the industry.
Concerns over retirement village practices
“While it is disappointing and disheartening to hear stories of resident expectations not being met, the RLC does not believe these issues are systemic across the retirement living sector,” said Gannon. “Industry continues to work hard to ensure that 250,000 retirement village residents across the country have the wonderful experience they deserve, which is generally the case.”
Gannon emphasized that retirement village homes should be viewed as a lifestyle choice, not investment properties. He also stressed that the sector operates under strict state and territory legislation, with some communities also governed by the federal Aged Care Act.
These regulations are regularly reviewed to ensure they remain fit for purpose. The RLC has been working closely with governments to simplify contracts and improve transparency, intending to increase consumer confidence. Gannon affirmed that the sector is committed to meeting the expectations of all its residents, not just the majority.
The ABC’s report has fueled the calls for more significant reform in the sector. Sharkie continues pressuring retirement villages to be recognized as a financial product, bringing them under stricter financial regulation. The RLC remains focused on working with governments to address concerns while maintaining these communities’ lifestyle benefits. The retirement village industry finds itself amid a public debate, balancing the need for transparency and regulation with its mission to provide affordable, age-friendly living environments.
