Navigating Exit Entitlements in Victorian Retirement Villages: A Comprehensive Guide

Leaving a retirement village can be an emotional and financially challenging time for residents and their families. In Victoria, understanding the exit entitlements associated with retirement villages is crucial for making informed decisions and securing financial stability. In this comprehensive guide, we will discuss the key aspects of exit entitlements for retirement village residents in Victoria and provide expert advice to ensure a smooth transition. 

Understanding Exit Entitlements in Victoria 

Exit entitlements are the payments residents may be eligible to receive after leaving a retirement village. In Victoria, these entitlements are regulated by the Retirement Villages Act 1986 and the Retirement Villages (Contractual Arrangements) Regulations 2017. There are two main ways exit entitlements are calculated: 

1. Your original ingoing contribution minus any fees owed to the retirement village operator, or 

1. The next ingoing contribution received by the operator minus any fees owed. 

For contracts signed after 1 August 2006, different rules apply regarding the timing of these payments. If your retirement village unit has not been sold or transferred by the time you move out, your exit entitlement will be calculated based on an independent valuation.  

Important Factors to Consider 

When navigating exit entitlements, it’s crucial to be aware of the various factors that can impact the amount you receive, such as: 

1. The terms of your retirement village contract, which determine when the exit entitlement is paid 

1. The costs associated with selling your unit, such as marketing, agent fees, and any capital gains tax 

1. The potential delays in receiving your exit entitlement, which can impact your finances when transitioning to a new living arrangement or aged care facility 

To better understand these factors and maximize your exit entitlement, it’s essential to seek professional retirement village financial advice. 

Seeking Expert Financial Advice 

Navigating exit entitlements can be complex and overwhelming, especially when you’re also dealing with the emotional aspects of leaving your retirement village. That’s why it’s important to seek expert financial advice tailored to your unique circumstances. 

Our team of experienced financial advisors specialises in retirement village financial advice and is dedicated to helping you make informed decisions regarding your exit entitlements. We understand the complexities of the Retirement Villages Act and the relevant regulations, and we’ll provide personalised guidance every step of the way. 

Understanding exit entitlements in Victorian retirement villages is essential for ensuring a smooth transition and securing your financial future. By seeking professional financial advice, you can make informed decisions and protect your interests during this important life stage. Don’t hesitate to reach out to our team of experienced advisors for tailored guidance and support.