National overview of the retirement village sector

The dramatic increase in the number of Australians turning 65 over the next 20 years is now an established demographic fact. Treasury projects a doubling of the seniors’ population by 2 050, with an economically signi fi cant reduction in the ratio of t axpayers to retirees. To support this growth there needs to be a large corresponding increase in the amount of purpose-built housing, so that the 8.1 million Australians who will be over 65 by 2050 con tinue to have the choice, independence and autonomy that they expect and deserve. Currently about 184,000 Australians live in retirem ent villages, or 5.7 per cent of the over 65 population. Th is pene tration rate is projected to increase to 7.5 per cent in 2025. Th e i ncreased rate, combined with the increase in the seniors’ population, means that there will be approximately 382,000 people wanting to live in a retirement village in 2025. Th is is more than double the 184,000 residents currently calling a retirement village ho me. As such, a large amount of investment will be needed in the sector i n coming years. Th e private and not for pro fi t sectors can play a lar ger role in meeting the needs of senior Australians. Th e people who inve st in and create retirement villages in particular have an integral role in building age-friendly communities, which are often a social and service hub outside the community too. Retirement villages o ff er a range of services and su pports to their residents. As these services and supports are self-funded, there is an additional benefit of not only improving residents’ lifestyles, but generating savings to governments. The analysis has shown that this generates $2.16 billion in savings to the health ca re system. $1.98 billion of these savings are achieved by retirement villages delaying residents’ entry into government funded aged care facilities.