Retirement villages swallow vulnerable people’s money.
In an article published by The Senior online magazine, one person who suffered at the hand of a village operator described retirement villages as a "Get Poor Quick Scheme".
Retirement villages swallow vulnerable people’s money.
In an article published by The Senior online magazine, one person who suffered at the hand of a village operator described retirement villages as a "Get Poor Quick Scheme".
A report from the NSW Retirement Village Residents Association shows over 40% of people in retirement villages have experienced abuse.
"The Retirement Village Residents Association (RVRA) developed and distributed a survey on psychological abuse to all its members and some 120 retirement villages throughout NSW. The RVRA is not aware of any previous studies of the impact of psychological abuse solely within retirement villages that excluded external triggers such as financial abuse and neglect. Other studies psychological abuse with a broader range of elder abuse topics, and cover the broader senior cohort of aged care, community housing and general over55 living situations.
Over 40% (n=512) of the respondents reported experiencing at least one type of abuse. The proportion of females reporting abuse was higher (44%) than for males (34%). The percentage of the younger age groups in the sample reporting abuse was much higher (48%) when compared with the older groups (28%)."
See the full report here - https://www.rvra.org.au/news/news-articles/2023-06-15
Whilst American this video shows that the general issues with 55+ retirement villages are universal. It does not cover the more serious issues more relevant to a particular village or operator.
Why retirement village residents seek an industry Ombudsman. The VCAT system is failing them.
This is the detail of a real situation over 4 years of village operation. The resident contends that these matters are all contrary to the provisions of Retirement Village, Contract and Consumer Law.
In 2020 the operator declared residents voted for a special increase in fees without counting the votes to substantiate the necessary resident support as required by statute. Total cost to residents in that year some $22,000.00.
Commencing in 2020/21 the operator incorrectly calculated resident fees. Cost to residents some $80,000.00 to date then compounding by cpi for every year into the future.
From 2019/20 the operator charged for ‘services’ claimed to have been provided but stating only the total amount. No details, no itemisation. Residents denied statutory right to examine validity of charges. In the order of $200,00.00 per annum.
In 2021/22 residents were charged for the cost of the operator’s own legal expenses. Total cost to residents in that year some $46,000.00.
From 2019/20 the operator failed to verify that the fee levied on residents met their statutory obligations. Total cost to residents accumulated to date, some $236,000,00.
From 2019/20 the operator overdrew the resident’s Major Maintenance Fund to pay costs that were the contractual responsibility of the operator to pay. Overdrawn balance of the fund to date, some $390,000.00.
From 2019/20 the operator included in resident monthly fees the wages cost of village maintenance staff for the refurbishing of village units owned by the operator and being prepared for resale. Most units were the contractual responsibility of the operator to pay those costs. $ uncosted to this time
From 2019/20 the operator included in the monthly fees of those residents without a contractual obligation to pay, staff wages plus the replacement cost of fittings, fixtures and furnishings for the unit maintenance where the occupying resident had a contractual obligation to pay the direct costs incurred. $ uncosted to this time
From 2019/20 new village residents on the operator’s new contracts were charged a monthly ‘maintenance charge’ greater than the statutory allowable maintenance charge. Total cost across all new residents in the order of $153,000.00 to date.
The total amount in dispute over just 4 years of village operation is $1,727,000.00 plus.
The Australian Urban Research Institute has recommended a National Ombudsman for Retirement Villages.
Retirement Villages in Australia operate under varying laws of the State Governments, this as opposed to aged care facilities that operate under Commonwealth laws.
AURI published a report on the industry in December 2022, the primary recommendations of the report were -
Evidence for many residents in retirement villages shows they are being taken advantage of for items in their units where they are arbitrarily being made responsible to pay for repair and/or replacement.
Retirement Villages come under Victorian law whereas aged care facilities come under commonwealth law. Regulation 11(1h) under Victorian law requires a village operator to list the relevant fixtures, fittings and furnishings in the contract before the contract is signed.
A resident in a Victorian retirement village paying for repair or replacement of fixtures, fittings or furnishings not listed in your contract? Seek advice now from a local free legal advice service, your solicitor or Consumer Affairs.
Currently the Retirement Villages Act 1986 is under review by the State Government, if this matter is applicable to you or there is another matter of concern to you make those concerns known to your local State Government representative.
Find you local state government representatives - https://www.parliament.vic.gov.au/about/people-in-parliament/members-search/search-members
Retirement Villages = 'The transfer on intergenerational wealth, not to families, but into the hands of corporations. Shame about elderly people not having enough money for Aged Care.' - Tom Gait