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Transforming Retirement Villages: Key Insights for 2025

Charting the Future of Retirement Villages in Australia

In a recent episode of The Business of Ageing podcast, Shaun Alexander spoke with Daniel Gannon, Executive Director of the Retirement Living Council, about the evolving landscape of retirement villages in Australia. The discussion covered key trends shaping the industry, from tackling the housing and aged care crises to delivering world-class communities for an aging population. Village managers and executives play a pivotal role in shaping the future of retirement living. With this growing demand comes the responsibility to innovate, advocate, and adapt. Here are key takeaways from our conversation with Daniel Gannon, along with actionable insights to apply to your own operations.

1. Addressing the Converging Crises: Housing, Aged Care, and Population Growth

Australia’s retirement village sector is at the intersection of several converging crises: an aging population, housing supply challenges, and the strain on the aged care system. With the population of Australians over the age of 75 set to grow from 2 million today to 3.7 million by 2040 (an 85% increase)​, the pressure on housing and care services will only intensify.

According to Gannon, 75% of people over 75 in Australia—around 1.4 million—are living in homes that are now considered oversized for their needs. By encouraging older Australians to transition to retirement villages, not only can we meet their changing lifestyle needs, but we can also free up housing for younger families struggling with affordability​.

What you can do:

  • Advocate for policy changes that encourage right-sizing and remove financial barriers like the Aged Pension Asset Test, which discourages many older Australians from making the move.

  • Promote your village as a part of the solution, not only for aging residents but also for younger generations in need of housing.




2. The Power of Storytelling: Shifting Public Perception

One of the biggest challenges the sector faces is overcoming negative public perceptions about retirement villages. Many people still associate retirement villages with outdated facilities and restrictive living conditions, which is a far cry from today’s offerings. There is a lot of power in storytelling in changing these perceptions, particularly by sharing positive resident experiences.

Gannon recounted how every time he meets with residents, they consistently tell him, “I wish I had made the decision to move in sooner.” Sharing these testimonials, particularly those that highlight the lifestyle and social benefits of village life, can be a powerful way to shift public sentiment​

What you can do:

  • Collect and promote resident testimonials in your marketing materials, particularly focusing on those who have benefited from social connectivity and health improvements.

  • Partner with local media to share resident stories that highlight the benefits of retirement village living, showcasing how these communities contribute to a higher quality of life.




3. Social Connectivity and Well-Being: Combatting Loneliness and Isolation

Social isolation is one of the biggest risks facing older Australians, especially those living alone. Retirement villages are uniquely positioned to address this issue. According to the Better Housing for Better Health Report, residents in retirement villages are 41% happier, 15% more physically active, and five times more socially active than their peers in the wider community​.

What you can do:

  • Implement intergenerational programs in your village, such as partnerships with schools, early learning centers, or local community groups.

  • Regularly assess your village’s social programs to ensure they are fostering meaningful connections and combating loneliness.




4. Tackling Planning and Development Roadblocks

One of the biggest frustrations for operators is the significant delays in development applications (DAs) for new retirement villages. The Retirement Ready Report, a national planning report card assessing the readiness of planning systems across Australia for the needs of a retiring population, revealed that 67% of DAs take more than 12 months to be completed, with 23% taking over two years​. These delays come at a time when the aging population and demand for retirement living are surging, creating a bottleneck in the system.

Operators have shared stories of waiting between five and eight years for a development application to be approved. This delay is unsustainable as demand continues to rise, especially given the 5% vacancy rate in many areas, such as Perth​.

What you can do:

  • Advocate for more efficient planning processes at the local government level and highlight the economic benefits of faster approvals, including job creation and increased housing availability.

  • Collaborate with industry associations like the Retirement Living Council to push for planning reforms that prioritize retirement villages as a key part of the housing solution.




5. Transparency and Public Perception Around Contracts

One common issue across the sector is the lack of transparency around financial models and contracts, particularly concerning exit fees and maintenance costs. Gannon noted that these concerns are a major source of negative perceptions. The Retirement Living Council has worked to make contracts more transparent, especially around forecasting exit fees​.

What you can do:

  • Review your village’s contract process to ensure it provides clear, upfront information on fees and financial obligations.

  • Work to build trust with residents by offering transparent, easily understandable financial models.



6. Role of Financial Advisors in Educating Prospective Residents

An often-overlooked issue: many financial advisors are unaware of how retirement villages operate and therefore fail to effectively communicate the benefits to their clients. This gap in understanding could prevent potential residents from even considering a move into a village​

What you can do:

  • Partner with local financial advisors to educate them on the unique value propositions of retirement villages, allowing them to better inform their clients.

  • Offer educational workshops or resources that financial advisors can use to communicate the financial benefits of village living to older Australians.






7. The Rise of Vertical Villages and Integrated Care

As consumer expectations evolve, the design and structure of retirement villages must also adapt. There has been a big increase in the number of vertical villages and integrated care facilities, which offer a more urban, community-focused experience. These developments include everything from healthcare services to cafes and green spaces, providing residents with a holistic living environment.

What you can do:

  • Explore opportunities to modernize older properties by retrofitting them to meet the needs of future residents, particularly in terms of accessibility and integrated care.

  • Consider partnerships with healthcare providers to offer in-home care services, enabling residents to age in place without needing to transition to an aged care facility.






8. Financial Innovation: Reducing Barriers to Entry

Many older Australians are reluctant to move into retirement villages due to financial barriers, particularly the Aged Pension Asset Test and the limitations of Commonwealth Rent Assistance. These barriers are preventing people from downsizing and right-sizing into retirement communities. If older Australians delayed their entry into aged care by just two years, the government could save up to $945 million annually​. However, financial disincentives are keeping many from making this move.

What you can do:

  • Educate prospective residents on the financial benefits of moving into your village, particularly in terms of long-term savings and improved quality of life.

  • Work with financial advisors and legal experts to help prospective residents navigate financial barriers and ensure they understand the financial models, exit fees, and benefits.






9. Assisted Living and Continuum of Care

There is a growing trend of assisted living options within retirement villages, allowing residents to access care services without needing to move to an aged care facility. This continuum of care provides peace of mind for both residents and their families, making it a crucial consideration for new developments​

What you can do:

  • Consider offering assisted living services or co-locating aged care facilities to meet the needs of residents as they age.

  • Highlight the continuum of care model in your marketing to families looking for long-term solutions that allow their loved ones to remain in one community.






10. Advocacy for Policy Reform: Unlocking the Full Potential of Retirement Villages

Gannon reiterated the importance of policy reform in allowing the retirement living sector to meet the growing demand. He emphasized that changes such as reducing red tape in planning processes, improving Commonwealth Rent Assistance, and reforming the Aged Pension Asset Test could unlock tremendous potential.

One of the most impactful stories from the podcast was how changes to Commonwealth Rent Assistance could help low-income retirees move into retirement villages, where they can benefit from communal living and healthcare access​

What you can do:

  • Continue advocating for policy reform at the local, state, and federal levels. Make your village’s success stories known to policymakers, showcasing how they improve residents’ lives and reduce the strain on public health systems.

  • Partner with other operators and industry associations to present unified requests to the government for clearer, more supportive policies that allow retirement villages to thrive.


Call to Action:

The retirement living sector in Australia is poised for tremendous growth and transformation. However, it requires leaders to champion change, innovate, and advocate for policies that will enable the sector to meet the challenges of an aging population. To explore these ideas further, listen to the full Business of Aging Podcast