News

NewsDo your retirement home-work
Do your retirement home-work

Do your retirement home-work

Tags: Consumer Action
Last updated by Someone on

Do your retirement home-work

 

Ask any ageing Australian and they will tell you the same thing - one of our biggest concerns in life is the inevitable prospect of relocating into a retirement home or aged care facility.

So if you were one of the many FiftyUp Club members left feeling somewhat distressed following a series of media reports this week on the booming retirement village industry, rest assured you were not alone.

The industry’s sometimes questionable and confusing contracts, which the Sydney Morning Herald coined a “get-poor-quick scheme”, has set off a tidal wave of anxiety amongst retirees nationwide, many of whom currently reside in, or are contemplating transitioning to a retirement residence.

So just how can you protect yourself from being potentially ripped off?

Aged Care Specialist and CEO of Berrington Care Group Glen Gillingham explained on the Daily Drive this week that doing your homework and seeking proper legal and financial advice is essential before committing to a purchase or lease agreement with a residential care provider.

“There is a certain amount of ‘naivety’ with consumers when it comes to contracts. It’s vital that consumers get independent advice before signing these contracts,” Mr Gillingham said.

Meanwhile the Minister for Aged Care and Indigenous Health, Ken Wyatt, assures retirees that the government will not tolerate the exploitation of elderly and vulnerable Australians.

“While the industry advises me the majority of residents are happy, these highlighted cases are not what we want in a fair-go society.

“Older Australians should be able to feel safe and secure in their aged care, and not be subjected to mistreatment or abuse of any kind.”

There are many Aged Care businesses that can help you navigate the complex aged care industry including Balanced Aged Care’s Eric Hiam, who is also a regular guest on the Daily Drive.

Whilst state branches of Fair Trading can also provide support and guidance about what to look out for in aged care contracts.

Remember by doing your research and attaining the appropriate professional advice, you just might save yourself from being swindled out of your life savings or nest egg just like the unfortunate elderly Aussies featured on Four Corners.

Here’s a few helpful links to assist you in your preparations:

https://www.kincare.com.au

http://affinityagedcare.com.au

http://www.bfs.net.au

http://www.balanceacs.net.au/

Any advice given is general in nature and may not be right for you. If in doubt about the appropriateness of the advice, given your own objectives, financial situation and needs, you should seek personal advice 

  1. Watch the Four Corners program here 
  2. Read the Fairfax story here 
Originally posted on .

Join the conversation

FiftyUp Club
Do your retirement home-work

Share your views with other members. 

Want to leave a comment? or .
Read our moderation policy here.
Paul
Paul from QLD commented:

Having just reached 65 years of age, it is time for us to look at our future in terms of aged care accommodation. The only experience we can rely on is the way my mother in law was treated and, to be honest, it was a disgrace. She even had to go for over a year before they got a wireless phone that could be taken to her bed, making our contact with her very difficult from thousands of kms away. And when she fell out of bed while not being looked after properly, the home was going to put her mattress on the floor! The Governments (left and right) have totally abrogated all responsibility for the ageing in our community, and to be honest it really scares me. And this business of US having to pay for solictors and accountants check any of their contracts, where do we find the money???? 

Someone
Someone from NSW commented:

I wonder how many former polititians have there snouts in the trough with this scandal ie: members of the board etc:That's probably why it's allowed to go on this long . 

Sue
Sue from NSW commented:

It has been suggested to have a solicitor AND an accountant look at the contract as it may be legal but all the fees and conditions are very complex. But you have to have the money to afford these services! Better to be careful in the beginning than being stung big time later. 

Phyllis
Phyllis from QLD commented:

Thank you all for the information. I will be using a solicitor specializing in Aged Care throughout the whole process before I sigh anything binding and when purchasing. The industry sounded so trustworthy but it always pays to be cautious. . 

William
William from NSW commented:

I am live in a village built by Rawson homes a very well known and reputable builder, however when it comes to building villages the construction is built to a very limited price and quality seriously reflects that limitation. As example the term security fly screen doors (plural) actually means one on each house that is the front door not the back or side doors. We can have a nice hot shower try getting a sink full hot water, it doesn't happen. When it comes to design the wet areas are virtually on four separate corners hot water supplied by something no bigger than you would apply to a mobile home in a caravan park. 

Pam
Pam from QLD commented:

Our friends are moving into a retirement village in Brisbane and got their solicitor to peruse the paperwork. He said it was the standard type forms , and charged them $500. 

J and B
J and B from NSW commented:

The naming and shaming report on Aveo by the SMH and 4Corners is only the tip of the iceberg. Aveo are masters of the spin ... they convince you that everything they do is for your benefit. I have friends who bought into a unit block that Aveo knew was defective and didnt even meet Australian building standards. The result was a nightmare for these residents but Aveo tried to make out they would be better off in the long run!! They promote their new supposedly ""fairer'' contracts, but make no effort to stop ripping off people on the old contracts (which nobody could understand). Buyer beware. 

Neil
Neil from QLD commented:

Like everything lately when there is money to be made and there are government rebates available the shonky comes out the big movers such as lend lease and stock land are there you are paying 450000 at northlakes for a 2 bed room unit then when you drop dead they come in for the kill taking 40 or more percent of the value of the home 

Lisa
Lisa from NSW commented:

I put my Mother in Aged Care 5 years ago and at the time it wasn't really a nightmare, I mean it's all easy isn't it? NO WAY, we found out later that the 'bond' that I paid for is considered hers so when she died it ended up being part of her estate, make sure if you pay the bond (as a family member) that the contact says that the bond is yours, also if you keep the family home, again check as if the person is on the pension after two years it will be considered part of her assets and they will lose the pension. Although it should be easy to put one in aged care you MUST have legal advice, and make sure the solicitor is specialised in Aged Care.... 

Comment Guidelines