Aged Care Vs. Retirement Village: Which Is Better?

When looking for a safe and comfortable living situation after you retire, it is important to understand what senior care facilities and retirement villages can offer.

There are many differences between these two types of residences in terms of price, services offered and the type of commitment required to live there. Some of the pros and cons of each will depend on your needs, budget, and preferences.

Retirement can be different for everyone, and whether you decide to move into a settlement or stay in your current home, you need to determine your short- or long-term needs and make changes to meet those needs.

Aged care facilities, also known as retirement homes, are facilities that provide 24-hour medical and personal care to older people with disabilities. These services are usually paid for by the government and are meant to be temporary and provide relief to caregivers.

Retirement villages, on the other hand, are private properties that have been purchased and maintained by a company. They provide accommodation and support services such as cleaning, meals, transportation and social activities. The cost of living in a retirement village varies depending on the location and the amenities provided. In some cases, it is higher than the cost of living in your own accommodation.

How do senior care facilities and retirement villages compare? The two terms are often used interchangeably. However, there are some distinct differences that may be worth keeping in mind if you or a loved one are considering these options for living in a supported environment.

In this article, we’ll break down the key differences between retirement homes and retirement villages in terms of lifestyle, eligibility, regulations, cost, and services offered.

Way of life

As a retiree, what lifestyle do you envision having?

There are those who plan to travel, maintain their active lifestyle and engage in various hobbies and activities in all their free time. However, there are those who cannot do the same and cannot live alone because of their health.

The former would fit better in a retirement village as it gives retirees their freedom and independence, while the latter is for elderly care as they have pre-existing medical conditions that would require specific care and attention.

Retirement villages are individual, private homes within a community, with shared facilities among residents for recreation and space for services such as doctors, therapists, etc. to meet their needs.

Residences for the elderly or residences for the elderly welcome retirees who can no longer live independently and who need help with their daily life and their health care.


There are certain conditions that retirees must meet to enter a retirement village or retirement home.

Both options have their pros and cons, but it is important to note that there is a waiting period for both types of housing before you can move in and there may be eligibility requirements.

Residents of aged care facilities must meet specific eligibility criteria regarding their health status, financial situation and ability to live independently. Retirement villages have no requirements outside of their age limits.

For retirement villages, you only need to have a private contract or agreement with the promoter or supplier of the village. You can buy your own home or unit to live in, however, as the owner of a retirement village home or unit, you are likely to be bound by terms that restrict your ability to sell it to the future.

People over the age of 55 can live in a retirement village if they meet certain conditions set by Australian law (for example: having a minimum income level). Nursing homes may also have specific admission criteria such as requiring residents to be able to walk unaided and without the assistance of another person.

For aged care, retirees must go through an assessment process by the Aged Care Assessment Team (ACAT). This will determine whether they qualify for certain aged care providers, such as those subsidized by the government.

There are different retirement homes available depending on the needs and age of the retiree. Depending on the results of the assessment, you may be eligible for government-funded or non-government-funded nursing homes for the elderly.

Australian government-funded aged care facilities are regulated by the Aged Care Quality and Safety Commission (ACQSC), which provides subsidized services. Those not funded by the Australian government do not necessarily provide care services, but are regulated by state and territory governments.


With so many different options for seniors looking to retire or needing help with daily living, it can be confusing to understand what the difference is between an aged care facility and a retirement village. .

Although they are both designed to help older people live relatively independent lives while still getting the help they need, there are some key cost differences between them.

The costs of aged care facilities and retirement villages vary greatly depending on the location and the type of housing you choose (detached house or apartment). Both can be expensive, but retirement villages cost more.

Residents of retirement villages often pay an entrance fee as well as a monthly maintenance fee. Fees vary by institution, but are generally expensive.

In a retirement village, you usually pay one-time or regular rents as an entry contribution. This can range from around $50,000 all the way up to over a million dollars depending on where you live and the type of property. Retirement villages may charge an initial entrance fee, which is akin to a requirement.

You may have ongoing additional costs for utilities such as electricity and gas that are not included in your fee. Retirement villages may also charge deferred management fees. This is where they give money to the operator instead of returning it to the resident or their estate.

On the other hand, aged care facilities are usually paid for by the government or funded by private insurance companies.

The ongoing costs of a retirement home for the elderly are often the same as those you would expect in a retirement village. In an aged care facility, you pay a refundable deposit also called a “refundable accommodation payment” or RAP, which is usually equal to the cost of building your room.

Retirees will also pay a daily rate, called the “base daily rate”, which is used to provide the services you use. The government pays part of it for you.


The main difference between aged care facilities and retirement villages is the level of care provided. In an aged care facility, the focus is on services, whereas a retirement village is more of a community.

Aged care facilities provide medical assistance and specialized services to people with physical and cognitive disabilities. With a senior care facility, you receive varying levels of personalized care based on your individual needs.

There are four types of care for the elderly: intensive care, weak care, respite care and dementia-specific care. Each type offers different levels of support and assistance for activities such as self-care, nutrition, and mobility.

However, this does not mean that you have to stay at the same level of support for the rest of the time – if your needs change or you improve in certain areas, you can be reassessed so that you always receive the most appropriate level of support. for where you are.

They also offer services such as meal preparation, medication management, transportation and laundry, as well as skilled nursing care. Most of these services are included in the price you pay to live there.

On the other hand, retirement villages provide basic support for daily needs such as cleaning and cooking, as well as health services such as rehabilitation. It offers a more independent living option without any worry of having to move again if your needs change.

It is important to note that many retirement villages have a range of accommodation options available to meet a variety of different needs.

While some residents may need minimal help with daily tasks like cooking or dressing each day, others may need more comprehensive care to help them properly manage their condition and keep them going. to live independently in their family environment for as long as possible.

Some retirement villages offer their own restaurant-style dining facility, but this service is usually optional and may incur an additional charge. Retirement villages do not offer the same types of services as residences for the elderly; instead, residents can purchase them from outside vendors or even make them themselves.


One of the most important things to consider when choosing between aged care and retirement villages is whether you want to continue living independently or if you will feel more relaxed in an environment with follow-up care. regular health, home care support and meals provided for you.

You can learn more about your options by talking to family, friends, co-workers and neighbors about what they choose for themselves. The right choice depends on your needs, whether you need a lot of help or just a little help.

Finding the right retirement home or retirement village for you is one of the most important decisions you can make. So as long as you do your research, you should have no problem finding the right option for you.

Aged Care Vs. Retirement Village: Which Is Better?


Last update: May 11, 2022

Posted: May 11, 2022

Comments are closed.