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Billions saved: ‘Better Housing for Better Health report’

The Bugle App

Donna Portland

14 December 2023, 2:26 AM

Billions saved: ‘Better Housing for Better Health report’

The Retirement Living Council unveiled its ‘Better Housing for Better Health report’ on November 25, 2023, highlighting how Australians in retirement villages contribute to saving taxpayers nearly $1 billion in health care costs by postponing entry into aged care.


National expenditure on aged care sees an annual reduction of $945 million by delaying entry for approximately 11,600 individuals into residential aged care by two years.


Residents exhibit a 20 per cent lower likelihood of hospitalisation after only nine months, avoiding 14,000 annual hospitalisations.



The current pipeline of retirement communities is set to alleviate the housing shortage by 18 per cent, with the potential to reduce Australia's housing deficit by 67 per cent if expanded to meet current demand levels.


Additional benefits include residents in retirement communities being 15 per cent more physically active, 41 per cent happier and experiencing both physical and mental health improvements. They are five times more socially active, twice as likely to engage with family or friends and demonstrate reduced levels of depression and loneliness, resulting in government savings of almost $5 million in additional healthcare costs.


Daniel Gannon, Executive Director of the Retirement Living Council, emphasised the distinction between the retirement living industry and aged care and says that the report sends a powerful message to governments about the sector's value, affordability in an otherwise unaffordable housing market, and the promotion of healthier lives among its residents.


"Retirement villages are already saving the government a billion dollars annually by delaying residents' entry into aged care. We need more of them," said Gannon.



As Australia faces a 70 per cent increase in the population aged over 75 by 2040, the report underscores the socio-economic impacts on housing supply and the struggling residential aged care sector. The call for age-friendly housing resonates as a solution, reducing interactions between older Australians, GPs, and hospitals and providing tangible benefits for both citizens and governments. The report positions the retirement living sector as a key player in addressing Australia's housing crisis and the challenges posed by a rapidly aging population.


A Kiama Council spokesperson told The Bugle: “Kiama Council’s Blue Haven services provide a range of options to facilitate those in the region to ‘age in place’. This includes providing in-home support to around 700 clients via the Home Care Package or Commonwealth Home support Program. Our Independent Living Units (ILUs) give residents the advantages of living in a community where they can maintain their sense of freedom and independence and age in place. 


“In Kiama LGA there are also a range of private providers of retirement villages including Cedar on Collins, IRT and Uniting. In the Illawarra region there are additionally Anglicare, Hillcrest, Warrigal, Southern Cross Care, Jettys, RFBI, Oaklands, Elouera Village, Andrew Hearn and Oak Tree. 


“Providing residents a range of places to live, whether aged or young is always important to Local Governments and it’s great to see this Property Council report recognise the benefits of retirement village communities.”


Mr Ross Gallagher, IRT Executive General Manager – Home Care & Retirement Living, in Kiama said, “Retirement living providers have a unique opportunity to play a more active role in the care and support of older Australians. Retirement villages are specifically designed to make life easier and more enjoyable, with site maintenance, home repairs and landscaping all taken care of. There are communal areas, shared spaces for socialising with neighbours, and a wide range of resident-run activities and social clubs. 



“The recent report by Retirement Living Council confirms there is a great deal of opportunity to advance the current concept of retirement living far beyond what it is today. Our own extensive research into what older Australians want and need from their housing and support services further supports this. 


“At IRT, we are moving towards retirement villages that aren’t just a home for seniors but a hub of wellbeing and social connections. A place where the homes built are tailor-made to reduce or, in some cases, eliminate the challenges of ageing and help people to make choices about how they live in later life.”


Mr John Burgess from Fresh Hope Communities, who runs Cedar on Collins in Kiama, commented, “There are many benefits to retirement living. However, the social benefits retirement community residents enjoy through community-based connections, easy access to services when needed amongst likeminded people support the notion of Better Housing = Better Health.”