For decades, the Deferred Management Fee (DMF) has been the bedrock of retirement living. Simple in theory – residents defer part of their payment until exit, allowing operators to keep entry prices lower – it has long underpinned how villages were funded, valued and sold.

Now, a new generation of operators is moving to alternative options. From Anglicare and LDK’s upfront “membership models” to Aveo’s menu of contract choices, and Not For Profits trialling alternatives, the once-unchallenged DMF is facing its biggest test yet. The question isn’t whether change is coming – it’s how quickly the sector will be forced to adapt.

Few comments have landed harder than Anglicare CEO Simon Miller’s blunt assessment: “The DMF model is dead. Customers don’t like it. We’re getting ahead of the curve.”

Anglicare has converted two of its villages to a member