The population is ageing but it is also becoming healthier, which is proving a nagging headache for retirement living operators. With the stay in retirement living already now up to nine years on average, we are hearing examples of growing numbers of residents staying at the village for over 15 years.
The average DMF is around 30%, and it normally accumulates over the first five years a person lives in the village. If the resident remains for 10 years plus, that means they are essentially living there for free – excluding weekly fees – far longer than ever before.
The average stay in a retirement village was seven years in 2016.
We have also heard anecdotally that some retirement villages are now, due in part to demand, lifting the entry age to try and contain the problem. Taking on older residents – while shaving time off their stay – makes economic sense.
Also, for land lease operators, their communities are ageing and the need for high care is becoming more apparent.
I have not heard of any aged care suites being built, so I suspect some older land lease residents are being advised to find an aged care home.
The SOURCE: Can village operators make the DMF model more attractive to people living longer?
