More than 70% of retirees who do not live in a retirement village are feeling the pinch of higher costs of living and are among the groups of retirees most likely to be concerned about the cost of living, according to the Keyton Retirement Living Lifestyle Report biennial survey.
Expatistan estimates the current cost of living in Australia is roughly $4,312 per month for a single person or $7,786 per month for a family of four. Based on these figures, the cost of living in Australia is ranked more expensive than in 87% of countries worldwide.
59% of retired Australians over 55 are more worried about the cost of living than they were in 2021 when the Consumer Price Index increased by 5.1% in the 12 months to March 2022, the highest annual rise reported since the introduction of the GST in 2000.
Those living in a retirement village or who own their own home are among the least likely to be concerned about the cost of living, the survey of more than 4,500 over-55s who are either retired or semi-retired found.
Retirement living is more affordable, at least in part, because the homes have lower energy, water and rates costs compared with the family home, and are priced 48% cheaper than the median house price in the same suburb. In addition, many of the health and wellbeing services required by older people are embedded into retirement village communities.
Another reason retirement villages residents are protected from cost of living rises are state and territory laws that protect them from increases in fees and levies above inflation, currently 3.6% Year on Year in 1Q24.
“The report indicates that people living in a retirement village are less worried about cost of living pressures," said Keyton CEO Nathan Cockerill.
"One of the reasons for this is many of the wellbeing and lifestyle facilities are part of the retirement village experience. There are no other incremental costs to pay such as pool or gym memberships."
For example, Keyton's Ardency Kennedy Place in Melbourne has a dedicated health and wellbeing hub, which includes a pilates room, swimming pool, doctors surgery, and allied health rooms. Keyton also has health and wellbeing coordinators embedded into many of their villages who help to design, with residents, a wellbeing program in line with the residents' preferences and need.
Other highlights of the survey findings include:
- 9% of retirees living in a retirement village would like to try online dating (compared with 4% living in their own home);
- 65% of people living in a retirement village are volunteers (compared with 17% living in their own home);
- retirement living residents experience higher levels of social interaction (57%) and support (40%); and
- 83% of retirees aged 55 and older use social media
The survey was conducted between 11 December 2023 and 10 January 2024.
Read the report here.
