Affinity Aged Care Financial Services is now known as Alteris Financial Group.

Understanding the costs can be confusing.

Our advice is tailored to you to deliver better choices & a clear path for the journey ahead.

Financial Considerations

There are many important financial considerations to make when contemplating entry into a retirement village. Affinity specialists are leaders in the field to help you work through the following important issues:

  • Should a larger purchase price be negotiated in exchange for a lower DMF?Seniors playing cards together
  • Is the DMF based on the purchase price or sale price?
  • Would a future capital gain share be calculated before or after the DMF is deducted?
  • Is a capital loss shared?
  • Does the village require reinstatement or refurbishment at any stage and if so, what are the likely costs?
  • Are unnecessary ‘user-pays’ fees included in general services fees?
  • Will commission be charged on sale of the unit?
  • Are there any onerous terms in the contract?

Discussing these details with an Affinity adviser can help you to avoid any hidden ‘traps’ when signing a contract.

Effects on Age Pension

The loss of some or all of the Age Pension is understandably one of the main concerns for people contemplating a move into a retirement villages. This can be a risk if there is a surplus of funds following the sale of the family home.

A secondary concern is the increased cost of living within a retirement village, due to the ongoing fees. Everyone’s individual circumstances are unique and it is crucial to discuss your personal situation with a specialised Affinity adviser before making a decision on a move to a retirement village. With the benefit of our expert advice, we can show you how to maximise affordability of this move and assess if it is possible to preserve either part or all of your Age Pension.

Below is an example of how specialist advice can completely change the financial outcome of a move to a retirement village:


William is 72, single and lives on a full Age Pension of $877 per fortnight ($22,804 per annum). William decides to move into a retirement village. He sells his home for $1.2m and moves into a unit in a retirement village with a purchase price of $600,000. After the costs of selling his home and entering the village, William is left with $550,000 in the bank. As a result, William loses his Age Pension.

In addition, William pays an additional $12,000 per year for general service fees at the retirement village. This fee will increase by three per cent per year for inflation. William is also required to pay a DMF of $180,000 on exit.


An alternative approach with specialist financial advice

Before making his move into a retirement village, William seeks the advice of a specialist adviser at Affinity. Together, they consider the best options for William’s move into his chosen retirement facility.

Taking this advice, William decides to negotiate with the retirement village to pay an entry cost of $950,000. William also gifts a small ‘early inheritance’ to his son, and purchases a new car along with some new furniture. Three goals which he considered otherwise unaffordable. After paying this cost, he is left with $150,000 in the bank. William is able to retain his full Age Pension.

His expected DMF is reduced from $180,000 to $95,000, saving him $85,000. The remaining $150,000 is invested in an income-focused portfolio which pays William a regular amount of $1,000 per month ($12,000 per annum). It is indexed for inflation at three per cent per annum, covering his ongoing general service fees.

Thanks to the advice he received, William’s funds are expected to comfortably support him for at least 13 years – his natural life expectancy, and after allowing for conservative rates of return. 


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