First published: 27 Jun 2024

Australians are healthier, more independent and living longer than ever before – an average of 30 years more than a century ago.

Data from the Australian Institute of Health and Welfare shows the number of Australians aged 65 and over has increased markedly in the past five decades, from 1 million in 1970 to 4.2 million in 2020.

By 2066, it is estimated there will be just over 4.5 million people aged between 65 and 74, and those aged 75-84 will account for a third of the population (or 3.5 million).

One in five of us will be aged 85 and older.

So, what does that mean for an ageing population planning their retirement now – and how will it look in the future, if funds are needing to stretch further?

What are the best housing options to accommodate this next chapter?

Planning for retirement ahead of time

The average age at retirement is currently just under 57, with most people intending to retire at 65, according to the Australian Bureau of Statistics.

Michael Rabey, Ingenia’s executive general manager of development, an Australian leader in over 55s communities, says ageing Australians are seeking progressive housing options for their retirement years.

He says many are choosing to make the decision to downsize while they are still fit and able to enjoy life, rather than waiting for a trigger such as ill health.

“At Ingenia, people are moving into our communities earlier,” Rabey says.

“We’ve seen the average age up in the 70s and now that has shifted to people in their mid-60s.

“If you leave it too late, the choice is gone and the outcome is out of your control.”

Rabey adds that planning for retirement earlier means residents can enjoy the range of lifestyle benefits on offer.

“Coming into an Ingenia community, it’s almost like reliving that community where you know your neighbour, you know the people around you, you have that sense of security and place and belonging,” he says.

Cost-effective living

From inner-city apartments and house-and-land packages to retirement villages and multi-generational houses with family, there is a broad – and somewhat overwhelming – range of housing options for ageing Australians.

For downsizers seeking independent and low-maintenance living, lifestyle-focused over-55s communities are attractive for their vibrant social aspects and convenient planning.

Land lease communities, like Ingenia’s offerings in Victoria, New South Wales and Queensland, also offer financial benefits for further ease when downsizing.

With this model, residents buy a new or existing home within a purpose-built community and pay a weekly or fortnightly fee to lease the land it’s on – so you own the home, but lease the land.

These communities are typically secure, residential neighbourhoods built around shared facilities like clubhouses and recreation, but there are no strata fees or stamp duty. All residents need to pay is their weekly lease fee, which also covers council rates.

Executive General Manager of Ingenia Residential Communities, Justin Blumfield, says land lease communities deliver an attractive alternative for independent retirees.

“Ingenia, and the land lease model in general, has really disrupted that traditional retirement model,” Blumfield says.

We have stripped out the complexity of other models and developed an easy to understand business model where we don’t have any entry or exit fees or deferred management fees, so people can make clearer financial decisions.”

High level of amenity

Blumfield says the lifestyle offering at Ingenia Communities is designed to enhance the life of residents, with a mix of convenience, leisure and connection.

“The facilities that we deliver are unbelievable,” he says.

“The clubhouses that we build these days have theatre rooms, gyms, saunas, bowling greens, golf simulators, sports bars. Residents have everything you can imagine at their fingertips.

“I have to say that people who have downsized with Ingenia and the land lease model are really doing quite well because they are discovering that it’s a good option for them – both financially and with the facilities we provide.

“Retirement has never been more inspiring. ”

How will retirement look in the future?

As younger Australians transition to retirement, the needs and demands of residents will change and communities will need to adapt too, Blumfield says.

“We know that as the younger generation moves more into retirement, they’re going to be wanting more and seeking different technology solutions that give them a sense of connection and belonging as well,” he adds.

Ingenia’s land lease communities are typically located close to transport hubs and important amenities such as medical centres and shopping centres, with homes offering a variety of floorplans and options at different price points.

This includes affordable homes under $400,000, as well as homes in premium neighbourhoods around $1 million and above.

Keeping costs manageable

Blumfield says Ingenia keeps customers central to its vision, particularly when it comes to feedback about their priorities during retirement.

“They’re going through a time where they want to have their expenses under control, so we design our homes to help improve energy efficiency” he says.

“We really do focus on reducing their costs within the community.”

Inspiring health and wellness options

Ingenia is also focused on fostering connection and wellness, so residents can further invest in their quality of life.

“We have a program called Activate, where we support our residents and committees to promote positive health and wellbeing options like aqua aerobics, yoga, art classes or talks on certain topics,” Blumfield says.

“It’s all about supporting residents to ultimately make them happier and healthier in their retirement.”