Aged care providers and governments need to plan now for the impact of lifelong renters on the financial models driving the industry. Downsizing from a family home to a smaller dwelling then into a retirement village and later to aged care if required, is a familiar path.
However, baby boomers’ high expectations for life after retirement are shaping fresh approaches within the sector. And with a 38 per cent increase over the past decade in the number of households renting, we need to pave fresh paths to ensure equitable access. Many people simply won’t have a primary asset to leverage for retirement.
This article looks at the European experience and examines future directions for retirement and aged care options in Australia.