Saturday, January 22, 2011

Paying a high price to retire

The subject title is from an article that appeared in The Age on 22 Jan 2011. The link is:

About 5.5% of over-65's live in retirement villages, just to give you an idea of the extent of this industry in Australia. This article reveals something many of us would consider an outrageous scam. Like many scams in Australia, the perpetrators cover themselves well by inserting unsuspecting clauses in small print, buried under heaps of paper. On the surface, they are acting legally.

I will not summarize the above article here. You'll have to read for yourself. The entire article is interesting and relevant. Just to prick your curiosity, think about losing control of your investment in a retirement home, while the company milks you for its worth. You cannot opt out without paying exorbitant exit fees. Even if you are careful enough to buy into a good retirement village, you can be subjected to new and unfair conditions when the retirement village is bought over by another company. Read the article for yourself and be forewarned.

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