How to select the best retirement home for your needs

Deciding on a retirement community for yourself or a loved one is a big milestone in life. And a decision not to be taken lightly. You must consider financial planning, healthcare needs, and emotional readiness. Yet many families find themselves making this decision under pressure, once circumstances demand it.

This guide offers practical steps, key questions, and common pitfalls to help you make the best-informed choice.

Start early

One of the most common mistakes is delaying too long. Most well-run retirement facilities have waiting lists, especially those offering a full range of care. Starting early gives you time to compare options, understand costs, and make decisions without being under pressure.

A lesser-known perk of joining a retirement community early is the ability to make full use of the facilities they offer. The ability to join community events while in good health makes it easier to make friends and become ingrained in the community. Joining at a later stage often means not being able to enjoy everything on offer fully.

Understand the options

Not all retirement communities are structured the same. The two most common options are:

• Life Rights: You purchase the right to live in a unit for life, but do not own it. This often means lower upfront costs and fewer property-related responsibilities, but no capital gains or inheritance value.
• Ownership (Sectional Title or Freehold): You own the property, which can be sold or passed on. This offers asset value but comes with ongoing responsibilities such as levies and property maintenance.

The right choice is very personal and depends on your finances, support structure, and future planning priorities.

Prioritise healthcare over lifestyle

Amenities and location matter, but healthcare planning is critical. Ask what happens if care needs change over time. Ideally, look for a place that can offer a continuum of care, where residents can move from independent living to assisted or frail care within the same community.

Key considerations to consider:

• Access to doctors and a pharmacy on-site
• Staff-to-resident ratios
• Availability of 24/7 nursing care
• Access to specialised care, such as dementia support
• Emergency response systems

 A long-term view

A retirement community should support not just your current lifestyle, but the one you would ideally like to plan for.

Consider:

• The facilities' track record and financial stability
• Staff turnover, especially in care roles
• Maintenance of facilities and plans for upgrades

Financial red flags

Costs can often extend beyond the initial price and monthly levy. Having clarity upfront can help prevent financial strain by accounting for long-term costs.

Look at:

• Average annual levy increases and whether they are capped
• Special levies (in ownership models only)
• Exit fees and refund policies
• Refurbishment costs taken when leaving

Understand the contract

The contract defines your rights and obligations.

Focus on:

• Refund terms and timelines
• Levy escalation clauses
• Exit processes
• Care service commitments

Before committing

Choosing a retirement community is not simply a financial decision. It is about quality of life, dignity, and peace of mind. Taking the time to plan, ask questions, and get opinions from family can make all the difference.

Industry insider Marna Maré, Trans-50 village manager, notes: “The best decisions happen when families give themselves time. Time to understand the options, to ask difficult questions, and to choose a place that will truly support the years ahead.”

Families must approach this decision thoughtfully, using practical tools like these to guide their selection process with confidence. Should this decision be made too quickly or without due process, the repercussions for health and finances can cause problems not only for a resident but also for their loved ones.

* Maré is the village manager at Trans-50.

PERSONAL FINANCE