According to the Property Council of Australia as of 2015 approximately 184,000 Australians live in retirement villages. This equates to 5.7% of the over 65 population. The numbers of people turning 65 is increasing with the reduction of taxpayers to retirees taking place. The Property Council of Australia suggests that to support this growth there needs to be a large corresponding increase in the amount of purpose-built housing, so that the 8.1 million Australians who will be over 65 by 2050 continue to have the choice, independence and autonomy that they expect and deserve.
The National overview of the retirement village sector is a report prepared by the Property Council of Australia on this industry. A full link to this publication can be obtained here. Some key takeaways from this comprehensive report are:
- A retirement village is a residential, multi dwelling complex specifically designed for seniors aged 55 years and over.
- Retirement villages offer a range of health, leisure and support services.
- Many senior Australians have chosen retirement villages because villages offer age appropriate supports in a community environment.
- Villages also reduce the costs on publicly funded health services.
- Retirement villages are a self-funded service, receiving no government funding or subsidies.
- As well as generating savings, the retirement village sector contributes to national GDP and taxation revenue, through investment and village operations.
- The high growth forecast for the population of over 65s in Australia will drive growth in demand for accommodation options for seniors, including retirement villages.
- 5% of Australians over the age of 65 are forecast to live in retirement villages in 2025, increasing from 5.7% in 2014.3
- The Australian Institute of Health and Welfare, Patterns in Aged Care Program Use 2002-03 to 2010-11 report determined that residents in retirement villages enter aged care on average five years later than those going from a family home.
- The level of facilities and services offered by retirement villages reduces the number of hospital admissions
- A major cost to the health system is the inability to discharge seniors back to a safe and supported environment. Retirement villages assist by providing services that allow for an early discharge in a supported and safe environment.
- The high level of social interaction available to residents living in retirement villages decreases the prevalence of social isolation, which is one of the major causes of mental illness in Australian seniors
- The self funded services and supports that retirement villages offer generate savings to health and aged care budgets. $2.16 billion is potentially saved by governments across Australia annually.
- Retirement villages contribute to the Australian economy through increasing national GDP and tax. $2.93 billion was contributed to Australian Gross Domestic Product annually through construction and operation of retirement villages.17 $176.2 million contributed in Australian taxation revenue annually.18 Tis comprises federal company tax, paid at 30% of taxable income, and state payroll tax, paid at different rates across each state, and net GST paid by the sector.
