We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.
After decades of preparing for it financially, retirees should be able to enjoy the fruits of their labor. But as thousands of older adults in Australia found, nest eggs can be notoriously fragile.
An investigation aired at the end of September by the Australian Broadcasting Corporation (ABC) revealed that the nation’s retirement villages — home to roughly 250,000 residents and billed as “a retiree’s utopia”, have actually been gouging Australian seniors on an unprecedented level.
Parliamentary member Rebekha Sharkie slammed the situation on air as “corporatized elder abuse.”
The multi-billion dollar sector has enjoyed minimal regulatory oversight, escaping the notice of state and federal politicians, and dodging the nation’s aged care commission.
‘Unethical, horrible people’
By Oct. 6, hundreds of messages from retirement village residents and their families had flooded the ABC network, complaining of “huge exit fees, mammoth costs to refurbish and renovate villas for sale and being kept in the dark by village management.”
The thought is scary: Imagine working hard and diligently saving only to receive the short end of the stick during retirement.
A financial advisor can help you build a sizable nest egg, potentially adequate enough to help you maintain your current standard of living post-retirement — whether you want to live in a retirement home or downsize to a smaller place.
The key? Find a reputable financial advisor you can trust.
WiserAdvisor connects you with vetted, FINRA/SEC registered financial advisors to help you understand your financial situation and plan accordingly for your retirement.
All you have to do is answer a few simple questions about your finances and goals, and WiserAdvisor will connect you with the advisor best suited to help you. After finding your match, you can set up a free no-obligation consultation to see if they’re the right fit.
ABC described the plight of 90-year-old Maurine Moore, a retired child psychologist who found life at her Melbourne village home so bad that she contemplated suicide.
She says Pinnacle Living, which operates three communities, bombarded her with harassing letters that accused her of damaging her unit and ordered her to make expensive repairs. She was then threatened with eviction.
The ABC investigation shares the story of Lynette Anderson’s mother Ruth, who bought her home in 2015 from Living Choice, a chain of 13 villages, for$564,950 in Australian dollars (about $378,000 USD). After Ruth had a series of strokes, her family was forced to sell, only to learn that they’d be slapped with$245,000 in exit charges: equivalent to 35% of the $700,000 sales price.
Could it happen to me?
Retirement communities in the U.S. are big business. A Grand View Research report found that the U.S. active adult community market for ages 55+ was worth $587.7 billion in 2022, up from $565.3 billion the previous year. Through 2030, it is projected to grow 4% annually.
Many senior communities have entrance fees that can be quite substantial. According to Simply Senior Living, these can add $30,000 to your bill (and that’s on the lower end). Entrance fees can come in at just under $1 million in some instances.
If you’re concerned about your money, know that it’s good to be cautious. Financial elder abuse is indeed found in assisted living communities and nursing homes in the US, the Consumer Financial Protection Bureau notes.
While the financial abuses here don’t appear to be nearly as institutionalized as those reported by ABC, Americans should beware of the money traps that could await them as they age.
One such trap that plagues many elders is estate planning. Not reading the fine print can cause your family and loved ones substantial financial loss after you pass. To safeguard your family’s interest, you should ensure you have formal legal documentation in place to make sure your wishes for your estate will be honored.
The good news is you don’t need to shell out big bucks and hire a lawyer from a big firm to make sure your legacy is secure.
LegalZoom is an online platform that simplifies the legal process by providing easy-to-use tools, customizable templates, and access to licensed attorneys.
For example, the platform allows you to easily create a will for as little as $99 and get step-by-step support from a licensed attorney to make sure everything is handled correctly, without needing to hire and pay for a lawyer the old-fashioned way. LegalZoom has upfront pricing that allows you to decide if you want to do a DIY estate plan or work with a licensed attorney — so you only pay for the legal services you actually need.
With a 4.3 rating on TrustPilot, LegalZoom can give you peace of mind knowing that your legal documents will be filed correctly and accepted in your state and your wishes for your estate will be honored.
If you aren’t sure where to begin, you can also call LegalZoom for free to figure out exactly what you need and how to get started.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
