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The future of senior housing

The future of senior housing

April 30, 2025
, , , , , Development & Sales, Management & Operations, Residence & Lifestyle

MarketWatchs’ Joseph Coughlin writes: Opinion: This is the future of senior housing – Older consumers — and their adult children — now have more education and higher technological expectations.

“Today’s senior-housing industry stands at a pivotal crossroads. Long viewed as a last resort motivated by necessity rather than desire, there is an unprecedented opportunity to fundamentally reposition the industry as an aspirational lifestyle choice for aging baby boomers and Generation X consumers, demographics that have consistently redefined each stage of life they enter.

This transformation is not optional — it is essential.

Although the sheer number of older adults and the shifting old-age dependency ratio suggest a steady and significant demand for senior housing, these data provide the industry and investors with false confidence, leading to a complacent belief that, as the adage goes, “if you build it, they will come.”

Demographics don’t tell the whole story

The numbers are undeniable. According to the U.S. Census Bureau, by 2030, every baby boomer will have crossed the age-65 mark, swelling this cohort to over 73 million. Even more striking, by 2040, the population age 80 and older — traditionally senior housing’s “sweet spot” — will nearly double to almost 29 million.

Demography may be destiny, but even though numbers may not lie, they can hide underlying dynamics that today’s senior-housing investors, owners and operators might overlook.

The current industry landscape faces evolving trends and significant challenges that will weaken the impact of seemingly predictable demographic tailwinds. To successfully navigate this changing marketplace, senior housing must shift from being seen solely as a care provider to an aspiration in the public’s mind. It will need to rethink its experience and service delivery, redesign its physical infrastructure, and place greater emphasis on partnering with trusted brands, rather than claiming to be a solo provider of quality services.

A longevity-economy wealth paradox

America’s older-consumer market, known as the longevity economy, is valued at an astonishing $8.3 trillion annually. However, the distribution of this wealth is strikingly unequal: Federal Reserve data show that approximately 80% of wealth among older households is held by only 20% of them. For instance, a 2024 Alliance for Lifetime Income study reports that 53% of baby boomers who will turn 65 between 2024 and 2030 have less than $250,000 in retirement assets.

This bifurcation offers investors two distinct opportunities: a lucrative but limited luxury segment and a much broader, financially constrained middle market. The implications are clear: Demographics alone will not determine market success; understanding nuanced consumer segments will.

Furthermore, the senior-housing industry’s capacity to develop and provide a service experience that is both desired and affordable for a mass middle market is crucial to fully realizing the market potential of the aging population.

Older consumers with more education and tech expectations

Not only will there be many more older adults than in decades past, but tomorrow’s potential senior-housing consumer is more educated and tech-savvy than previous generations.

According to Pew Research, 45% of Baby Boomers have at least some college education, compared to 28% of the Silent Generation. According to AARP, consumers age 50 and older now own an average of seven tech devices they use daily. Older adults have overwhelmingly adopted smartphones (91%), smart TVs (78%), laptops (72%) and tablets (62%). Far from being digital novices, these statistics reveal that older adults have integrated technology across all aspects of their lives — from communication and entertainment to productivity and health monitoring.

Tech-savvy, educated older consumers will demand a comprehensive digital infrastructure that supports everything from telehealth integration to personalized service platforms and smart living environments.

Marketing must evolve to engage these consumers through immersive digital channels. And physical spaces require redesign to accommodate ubiquitous virtual connections. Consider dedicated private telehealth suites with optimized audiovisual and diagnostic equipment, as well as communal virtual interaction hubs equipped with interactive screens and augmented-reality stations — enabling seamless social connections and remote engagement with friends and family, and even shared virtual experiences from walking the streets of Paris to visiting an aquarium or museum.

Providers who view technology as core infrastructure rather than an amenity will attract this new consumer and satisfy their tech-expecting adult children.

Don’t forget the adult children

The decision to buy senior housing is experiencing a significant shift: Adult children have become as influential as their aging parents. Approximately 53 million Americans — mainly millennial and Gen X daughters — act as caregivers and significantly influence these decisions. Research from MIT AgeLab indicates that these caregivers are deeply engaged in nearly every aspect of their parent’s lives, serving as confidants, caregivers and consumer advocates.

Adult children bring new expectations; they expect personalized service, technology-enabled amenities and access to branded experiences. Therefore, senior-housing providers must adapt their marketing, amenities and communication strategies to effectively engage both audiences — catering to their older residents and their digitally savvy, well-educated adult children.

Virtual aging in place

Perhaps the most disruptive senior-living trend is the widespread desire to remain at home as people grow older. An AARP survey reveals that 75% of adults age 50 and older prefer aging in place — now more feasible due to tech-driven solutions such as internet-enabled medication management systems like smart pill dispensers, medication tracking and real-time reminders, as well as AI-enabled fall-detection systems and remote health monitoring all designed to lead to better health management.

The “smart home” market in the U.S. alone is projected to exceed $87 billion over the next decade. Internet-connected devices and on-demand services — from home deliveries to telemedicine — provide the foundation for what’s known as “virtual assisted living,” empowering older adults to remain at home longer and easing caregiver responsibilities.

Although these innovations might not allow older adults to age in their homes permanently, they will significantly extend the time they can comfortably and safely remain in their homes.

As a result, individuals moving into senior housing later will likely be older, have developed additional or more intense health conditions and disabilities, and require higher levels of care — potentially increasing the complexity and costs associated with delivering their care compared with previous generations.

Multicultural market transition

The aging of the population is just one demographic reality shaping the future of senior housing. The Population Reference Bureau reports that between 2022 and 2050, the proportion of non-Hispanic white older adults is projected to decline from 75% to 60%, while Hispanic, Asian and multiracial populations will significantly increase. These changes will fundamentally alter senior-housing consumer demand.

Growing market diversity will create demand for culturally responsive living environments. Future senior communities will need to incorporate multilingual staff, culturally diverse dining options and design elements that reflect various cultural preferences. The market will likely see the emergence of specialized communities catering to specific cultural groups, along with greater integration of senior-housing options within established ethnic neighborhoods.

Senior housing’s future

The senior-housing industry stands at a transformative inflection point where demographics alone will not guarantee success. To thrive in tomorrow’s marketplace, investors and operators must recognize they’re no longer simply providing care facilities but delivering lifestyle experiences that meet the expectations of a more diverse, tech-savvy older population and their adult children.

The most successful players will be those who fundamentally reimagine their value proposition — creating culturally responsive, technology-enabled communities that feel less institutional and more aspirational, developing innovative financial models to serve the substantial middle market, and forging strategic partnerships with trusted consumer brands that resonate across generations.

Those who merely expand capacity without addressing these evolving consumer expectations risk finding themselves with properties that, while perfectly aligned with yesterday’s market, fail to capture the imagination — and investment — of tomorrow’s evolving and more demanding senior-housing consumer.”

To continue reading the rest of the article, please click here.

To contact Shire Retirement Properties (Pty) Ltd, please click here.

10 BEHAVIOURS TO ENJOY YOUR RETIREMENT YEARS

10 Behaviours to enjoy your retirement years

May 22, 2024
, , , , , , Residence & Lifestyle, Shire

Eliza Hartley wrote on the 14th of May 2024: “People who genuinely enjoy their retirement years usually adopt these 10 behaviors.”

“Retirement can be either a joy or a burden. It all comes down to one simple thing – habits. Those who revel in their retirement years usually have certain behaviors that set them apart. These folks have learned the art of living their golden years to the fullest, by adopting some key habits. And let me tell you, these behaviors are worth emulating.

In this article, we’ll explore the 10 behaviors most common among people who truly love and enjoy their retirement years. Let’s dive in and see what these retirement gurus are doing differently!

1) Embrace lifelong learning

You’ve likely heard the phrase, “You can’t teach an old dog new tricks.” Well, I beg to differ. People who enjoy their retirement years often have adopted a mindset of lifelong learning. Being retired doesn’t mean you stop growing. It opens up a whole new universe of possibilities to explore and learn.

Whether learning a new language, picking up a musical instrument, or even studying astronomy, these knowledge seekers know that learning keeps their minds sharp and their lives interesting.

2) Maintain a healthy lifestyle

I’ve noticed that those who truly relish their retirement years often have one thing in common – they prioritise their health. A few years back when I first retired, I found myself falling into a pattern of inactivity and unhealthy eating habits. It was quite the wake-up call when I started feeling sluggish, unmotivated, and not at my best. So, I decided to make a change. I started taking walks every morning, just small ones at first, then gradually increasing my distance. I also made some changes to my diet, cutting out processed foods and upping my intake of fruits and vegetables. The result? I’ve never felt better! I have more energy, sleep better, and even my mood has improved.

I’ve found that by keeping myself physically active and nourishing my body with healthy foods, I’m able to enjoy my retirement years to the fullest. It’s not always easy, but the rewards are definitely worth the effort.

3) Stay socially connected

Maintaining social connections is a crucial part of a fulfilling retirement. And here’s something worth noting: according to the Harvard Study of Adult Development, our relationships and how happy we are in our relationships have a powerful influence on our health. Retirees who stay connected with friends and family tend to have a happier, healthier retirement.

Whether it’s weekly get-togethers with friends, daily phone calls with loved ones, or simply maintaining an active role in their communities, these individuals understand the value of staying socially engaged.

4) Cultivate a positive mindset

You’ve probably heard the saying “Attitude is everything,” and it couldn’t be more true when it comes to enjoying retirement. People who genuinely enjoy their retirement often have a positive outlook on life. They choose to focus on the good, find joy in the little things, and maintain an attitude of gratitude. They see retirement not as an end but as a new beginning, a chance to do things they’ve always wanted to do and live life on their own terms.

Cultivating a positive mindset isn’t always easy, especially when faced with challenges. But those who manage to do so often find that their retirements are much more enjoyable and fulfilling.

5) Pursue passions and hobbies

Retirement is the perfect time to pursue those passions and hobbies that you may not have had time for during your working years. Those who really love their retirement years often fill their time with activities they enjoy. It could be anything from gardening, painting, fishing, traveling, or even starting a small business around a hobby.

By investing time in things they love, these individuals ensure their retirement is filled with joy and satisfaction. It gives them a sense of purpose and keeps them engaged and excited about life.

6) Cherish family time

In retirement, it’s those everyday moments that really shine. Whether you’re hanging out with grandkids, enjoying dinner, or just cosying up with your partner, these moments are pure gold. Think about it – they’re where you find that deep connection, warmth, and happiness that nothing else quite matches.

But you know how it goes – life gets busy, and we sometimes forget to slow down and soak it all in. That’s where retirement comes in, giving us the chance to savor these special moments.

7) Practice mindfulness

In the hustle and bustle of life, we often forget to pause and be present in the moment. I myself have been guilty of this, letting life rush by in a whirlwind. When I retired, I found myself finally slowing down. This allowed me to discover the power of mindfulness – being fully engaged in the here and now.

Practicing mindfulness has truly transformed my retirement. From enjoying a quiet morning cup of coffee, to noticing the beauty of nature on my daily walks, to truly listening when my loved ones speak – every moment feels richer, more alive.

8) Embrace routine

Now, you might be thinking, “But isn’t retirement all about breaking free from the routine?” Well, yes and no. While retirement does free you from the 9-to-5 grind, having a certain level of structure in your daily life can actually enhance your enjoyment of these years. People who genuinely enjoy their retirement often have a daily or weekly routine they follow. This could include exercise, hobbies, social activities or even quiet time for reflection.

Having a routine provides a sense of purpose and organisation. It keeps you active and engaged, and it helps to ward off feelings of aimlessness that can sometimes creep in during retirement.

9) Keep financial stress in check

Financial worries can cast a shadow over your retirement years. Those who get to enjoy their retirement are often those who have planned well. Guess what? This doesn’t necessarily mean they’re wealthy. Instead, they understand their income and expenses, have a budget, and stick to it. They make sure their financial situation is such that it allows them to live comfortably without constant worry.

It might involve cutting back on some expenses or finding creative ways to supplement income, but the peace of mind it brings is priceless.

10) Remember to live in the moment

Retirement is a special time in life, a time to slow down and truly enjoy the fruits of your labour. Those who genuinely enjoy their retirement years understand the importance of living in the moment. They savor each day, each experience, each moment. They don’t spend their time worrying about what’s next or dwelling on the past. Instead, they are fully present, making the most of each day.

It’s a simple concept, but one that holds the key to truly enjoying your retirement years. So remember, live in the moment. It’s where the magic happens.

Retirement bliss: Living the dream, every day!

The beauty of retirement lies in the power of choices. The choices we make during this phase of life can significantly impact our overall happiness. Whether it’s choosing to learn, stay healthy, connect socially, maintain a positive mindset, pursue passions, cherish family time, practice mindfulness, follow a routine, manage finances wisely, or live in the moment – every choice counts.

As you navigate this unique journey called retirement, remember that the power lies within you. The choices you make can shape your retirement into the most fulfilling years of your life.”

To read the full article, please click here.

 

Founded in 2010 by Rob Jones  in response to a clear need in the South African retirement industry for specialist independent consultants, Shire Retirement Properties is focused exclusively on the retirement industry.  Shire provides a unique service to the industry through hands-on and dedicated advice and support, sometimes over several years as villages develop and become fully operational.

To contact us, click here.

 

‘UNRETIREMENT’ TREND GROWS AS OLDER SOUTH AFRICANS HEAD BACK TO WORK

‘Unretirement’ trend grows as older South Africans head back to work

July 28, 2023
, , Residence & Lifestyle

Janice Masencamp from Bizzcomunity.com writes:

“Here’s the good news. We’re living longer than ever before, and enjoying a better quality of life, while we do. The bad news is that less than 10% of South Africans have enough money to retire, which means many older people are working for longer just to make ends meet.

It’s part of a global trend known as ‘unretirement’, which is seeing older people across the world flooding back to the workforce to supplement their incomes or simply to stay busy – and it’s having a major impact on retirement planning, says employee benefits advisory firm NMG Benefits.

Statistics SA data suggests that between 2002 and 2020, the life expectancy of South Africans increased from 59.9 years to 64.6 years for men, and from 67.2 to 71.3 years for women. At the same time, the Pew Research centre says the number of people living to 100 years and older is expected to grow to nearly 3.7 million by 2050, from just 95,000 in 1990.

The challenge lies in funding this new-found longevity. South Africans are notoriously light on their retirement savings, and according to Sanlam’s benchmark survey report, one in five consumers say they will never be able to retire.

NMG figures show that the average replacement ratio for retirees declined from 35% in 2019 to 32% in 2021. This means the average member of a retirement fund can expect an income of 32% of their pre-retirement salary after they stop working.

Longer lives, longer planning

South Africans aren’t very good at saving or planning for their retirement at the best of times. Now, as we live for longer, we’re getting to a point where we should start planning as if we’re going to live to 100, and align our goals accordingly. This will have a major impact on the way we do financial planning. And those who don’t have enough retirement savings will keep working until they’re no longer able to.

Legally, there’s no mandatory retirement age in South Africa. However, a retirement age is often written into employment contracts, and employees need permission from their employers to keep working beyond that age.

There are clear benefits to employers of having older, more experienced employees in the workforce. They have valuable skills, knowledge, and experience which can be passed onto younger generations.

Studies suggest people who work longer retain higher levels of energy and mental alertness, reduce their chances of cognitive diseases such as Alzheimer’s and retain a continued sense of purpose and belonging. However, for most ‘unretirees’, the biggest advantage of staying in the workforce is the ability to generate additional income and having more years to save towards retirement.”

To continue reading, please click here.

Heading for retirement? Click here to read more.

HOBBIES TO TRY IN RETIREMENT

Hobbies to try in Retirement

April 17, 2023
, , Residence & Lifestyle, Shire

The day you’ve been waiting for has finally arrived. You’re retired and have plenty of free time. However, if you’ve devoted 40 or more hours a week to building a career, you might find you’re a bit bored when you have a less structured schedule. Fortunately, finding a retirement hobby or two can keep you entertained and fill the void in a fun way.

Great hobbies to try if you’re bored in retirement

Pour paint

Maybe you’ve never possessed the skill to draw or paint, but you have a passion for arts and crafts. Pour painting utilises acrylic paints and a floating medium to help people come up with unique abstract art.

Once you’re more familiar with the techniques, you can add pour paint to almost anything you might imagine, such as a vase, wood, cups, and even furniture. You’ll also learn about things such as creating cells and patterns. While pour painting isn’t totally predictable, part of the fun is seeing what you come up with each time.

Read more on this link

Take up golfing

Golfing isn’t anything unique to retirees. Learning the benefits of taking up a sport later in life can help you see the many advantages of this pastime and why people spend their days on the green.

Studies show physical activity, such as walking through nine or 18 holes of golf, reduces the risk of diseases like Type 2 diabetes and heart attacks. It also gives you a social outlet, which can prevent depression and improve self-esteem.

Perhaps you golfed when you were younger to network with business connections. Now, you can play the sport for fun and take your time getting through a full course.

Read more on this link 

Write your memoir

One of the best hobbies for retirement is sharing your story with future generations. Did you get a bit wild during the 1970s? Maybe you started a revolution on your college campus, helped rescue homeless dogs in your 20s, or experienced a pivotal moment in history.

Make your hobby writing about the big events of your life so your grandchildren and great-grandchildren can look back on them later. Imagine if Laura Ingalls Wilder had never written a diary about her youth on the frontier. You have a story to tell and you should share it.

Read more on this link

Learn a new language

Since many people travel during retirement, making it a hobby to learn a new language can be practical as well as fun. With apps like Babble or local community college classes, you can easily figure out all the basics of any language.

You could even learn sign language and volunteer at a local deaf school or as an interpreter for a nonprofit organisation.

Read more on this link

Start a vlog

What if you could combine hobbies in retirement with bringing in some extra income?

Just because you continue working for a while doesn’t mean you can’t partially retire. If your funds allow it, you can start that business venture you always wanted or create an online video blog, monetising it for residual income.

Not sure how to shoot a video, upload it or monetise it? Ask any of your grandchildren or younger friends. They can help you get up and running quickly and explain the ins and outs of the latest tech. Most of the work is intuitive once you have a basic understanding.

Read more on this link

Eat through South Africa

Do you adore food? Make it your goal to eat throughout South Africa. If possible, travel to each province and eat the dish that the place is famous for.

If you don’t have the budget to travel but you love to cook, you can still try each dish from each province on the map. Get a taste of the country and all its regional specialties while improving your skills in the kitchen.

Read more on this link

 

Start a fairy garden

One idea that comes up over and over on retirement hobbies lists is gardening. However, why not embrace something truly whimsical and create a fairy garden for your grandchildren? If you live at the edge of a forest, you can create a really fun woodland-themed garden. However, any corner of your garden will do.

You can spend time creating miniature houses and pathways and adding figures as you find them. Buy fairy houses or make it your hobby to go to thrift stores and flea markets to find things you can repurpose for the fairies.

Read more on this link

Participate in goat yoga

You already know staying physically active is good for your well-being. However, the way you work out changes as you get older. Rather than taking another walk in the same neighborhood, look for unique workout challenges such as goat or puppy yoga.

As you try to complete the poses, baby goats or cute dogs pounce all around and make it impossible to concentrate. We dare you not to laugh during a session. Laughter is good for the soul, so go ahead and find a class near you.

Read more on this link

Chase storms

Does the sky lighting up with fingers of electricity excite you? Perhaps tornadoes are your penchant. If you love nothing more than a bit of excitement, storm chasing might be an excellent hobby for you after retirement.

The National Weather Service (NWS) estimates there are around 10,000 severe storms, half as many floods, and about 1,000 tornado events each year in the United States. NWS offers classes around the country as part of its SKYWARD Storm Spotter Program. Most classes are free and last around two hours. While not every graduate of SKYWARN becomes storm chasers, some do.

Read more on this link

Tell jokes

Perhaps you aren’t scared of a crowd and love a good story. Stand-up comedy might be the perfect outlet for you. Start by performing for family and friends. Once you feel comfortable with your routine, look for comedy clubs with an open mic night and sign up to test your spiel.

Whether or not you become the next Trevor Noah, you can make the people around you laugh and add a bit of joy to their lives. It will give you something to focus on that makes the world a better place through a smile or two.

Read more on this link

Enter competitions

Good retirement hobbies for people who have fierce competitive spirits involve some form of competition. Think about the things you enjoyed doing before retirement and how you might join a group or contest to showcase your talents.

Have you loved a particular video game for a while? There’s probably a competition for it. Do you enjoy fitness? Enter a senior bodybuilding competition.

Read more on this link

Gaze at the stars

Have the night skies always fascinated you? Spend time behind a telescope and learn to spot the different systems in the galaxy. If you live near a university, they might have a planetarium so you can take in the sky up close.

Learn about the myths and legends surrounding the different stars, particularly those named after Greek mythology.

Read more on this link

Forage for plants

Do you want to get back to the practices of your ancestors? Learn how to forage in your local forests and come up with edible mushrooms and medicinal plants. Knowing what is poisonous and what isn’t can become useful in a food shortage.

Survival skills are often a thing of the past in the highly technological world we live in. Learning about living off the land benefits your budget and gives you a useful skill to pass down to your descendants.

Read more on this link

Listen to others and consider their interests!

Ask other people what their hobbies are and listen to what they’re passionate about. You never know what you might fall in love with.

In retirement, hobbies not only help you keep your physical and mental health in check, but they also allow you to learn new things.

How to structure your day in retirement

March 24, 2023
, , , Residence & Lifestyle, Shire

Will Craig, Founder and CEO of ELDR, wrote the following article, published on 19 March 2023, on the Travel Awaits website:

10 Tips For Structuring Your Day In Retirement

“The idea of kicking back with “nothin’ to do” in retirement sounds fabulous in young adulthood or middle age when life can feel overloaded, so it comes as something of a surprise that a major complaint about retirement is having “nothin’ to do.” To be fair, the contradictory complaint of “too many options” remains a common grumble among retirees as well, leaving us with the classic insight every kindergarten teacher, clergy member, and cruise director will offer: People need structure.

Freedom from choices or prioritization is appealing, but all it takes is one frustrated late afternoon wondering where the day went for most of us to recognize we needed a little more design. The blessing and the curse of our jobs have been they told us who we were, where to go, and what to do most of any given week. Exiting that phase of life is mostly a boon; each of us just has to make it so with some forethought. The need to have a plan is no less true at home than when we travel.

What follows are 10 recommendations for structuring your day in retirement to create the right balance of freedom and goal orientation. You’ll notice that some inter-relate, such as adding novelty through your nourishment. If 10 is too many for you or some of them aren’t your cup of tea, pick the top three that resonate for you and put them to use!

  1. Start With A Plan

Your first hour is when you craft the narrative for what the day will be like. Whether you wake up grumbling or radiating light, carve out a moment for yourself to decide the theme of the day. What do you want it to feel like? Any specific outcomes in mind? You can accomplish this in many ways, such as jotting a phrase on the kitchen eraser board or journaling for half an hour, but prescribe what winning means for this particular day.

Pro Tip: “I’m ‘Off Duty’ and deeply relaxed” is a perfectly good option.

Bonus: Pick a theme song for the day.

  1. Create Daily Rituals

The root of the word “ritual” is rite, a sacred act. Rituals are moments in our lives we consciously devote to expressing our values or our gratitude and feeling tuned in to something greater than ourselves. Some people conduct rituals through contact with the natural world, others through religious customs. Identify where this already exists in your day and can be enhanced, or if it needs to be introduced.

Pro Tip: The difference between a ritual and a routine is the consciousness we devote to it. This is about presence of mind.

Bonus: Ask someone you respect what their rituals are.

  1. Establish Routines, Then Repeat

Routines are no less important than rituals. Functional habits are an asset to our longevity because of what they accomplish for us on a streamlined, unconscious basis. Are the nightly “sweet dreams” texts to your sibling or the daily clearing of your emails sacred acts? Maybe not, but it’s the very predictability and effectiveness of our routines that provide the canvas onto which we can add a splash of color to our lives.

Pro Tip: Drop a routine you should have stopped ages ago (Still paying for a newspaper?) and add a new one that’s overdue (How about a ripe piece of fruit before lunch?).

Bonus: Copy someone else’s routine that seems to work for them.

  1. Experience Something New

You heard it here first! Okay, maybe not, but you should still add a little novelty to your day. Even driving different routes gets our brains firing, and following our curiosity either spontaneously or with more sophisticated planning not only makes life more interesting; it makes us more interesting. Researching your next travel plans counts — the learning and the anticipation are just as essential to the fun as the travel itself.

Pro Tip: Museums change their exhibitions periodically — same site, new museum. Get back in there!

Bonus: Try a new healthy food every week. The worst-case scenario is you get to complain about how bad it was.

  1. Keep Moving

Every single day. Every day. Get out for a walk at the least, and running errands on foot counts. If you’re more interested in sports and achieving personal bests, build that into your day, or do your screen time on a treadmill or stationary bike. Fitness and movement practices now are the defining behavior of the quality and ease of your longevity later. Bring your water thermos and drink up!

Pro Tip: The enemy is sarcopenia (loss of muscle as we age). A little exertion goes a long way.

Bonus: If you’re a solo exerciser, more power to you, but get a buddy and combine your routines to add a little novelty and a lot of support in follow-through.

  1. Make Social Connections

No, not social media. Do that to whatever extent it interests you, but be sure to build into each day some meaningful voice-to-voice social contact. That could mean lunch with a friend, a regular phone call or video meet-up, or routinely convening with acquaintances to play a game and shoot the breeze.

Pro Tip: Every other human being needs social contact, too. Plan to make some invitations, and also be ready to discuss changes if a stale social routine needs re-design work.

Bonus: People like to help. An easy way to convert acquaintances into friends is by asking them to pitch in on a volunteer action with you.

  1. Enjoy Quiet Time

Even the most extroverted of us need some balance of “blessed solitude” to turn within for reflection or to have the feeling of “nothing going on” that we need. This is especially critical in the transition into retirement when we might discover a commute to and from work was giving us digestive time that we can no longer rely upon, or we suddenly have triple the time with a spouse or community members. Sometimes less is more.

Pro Tip: This is a proverbial Band-Aid removal conversation. It might be awkward to say “I need more time to myself,” but people get it and things will work so much better having had the dialogue.

Bonus: Caregivers absolutely must design the recharge of their own batteries, whether they gravitate to the role by personality or are thrust into it by circumstance.”

To read the rest of the article covering: Discover Your Purpose, Establish Good Eating Habits, and Reassess At The End Of The Day, click here.

Shire Retirement Properties (Pty) Ltd (Shire) is based in the Western Cape Province of South Africa and specialises in the provision of a range of services focused exclusively on the retirement industry. To contact us, click here.

IS IT A GOOD IDEA TO MOVE INTO A RETIREMENT VILLAGE?

Is it a good idea to move into a retirement village?

October 22, 2022
, , , Residence & Lifestyle, Shire

Jason Appel wrote on Moneyweb on 21 Oct 2022: “Should I move into a retirement village? The factors to consider, and what to know about the ownership deals you will be faced with.” (Jason Appel is a financial planner at Chartered Wealth Solutions.)

“One of the most difficult choices to make in life’s journey is whether or not to move into a retirement village, and on what terms.

Weighing up the pros and cons is hugely personal, and circumstances vary from person to person. You might, for example, be a single older person with no children, or married and with adult children who have left the nest, or married and now looking after grandchildren, or still supporting adult children.

Whatever the case, many people get to a point where they’re quietly thinking about whether or not they should or could move into a retirement village. And one of the most important things to wrap your head around, if you do make the move, is what sort of property contract you should enter into.

There are three possibilities offered in retirement villages:

  1. life rights,
  2. freehold and
  3. sectional title.

Life rights essentially mean that once you pass away and your unit is resold, your estate gets back the amount you paid for the property, minus some costs, but not any profit made on the sale. However, it does come with other benefits; which I will explain later in the article.

Most retirement complexes no longer offer outright ownership. Internationally, it’s mostly life rights, but we’re still getting used to it in South Africa.

Ownership versus life rights

I did an exercise for my parents comparing ownership to life rights, and was surprised by what I found.

You can generally get a life rights unit at a lower cost than outright ownership. You do pay levies, but these cover all external maintenance, security, perhaps a meal a day, and the fact that there’s a maintenance team on the property to respond quickly to any problems. Levies also cover the care of the garden, a swimming pool if there is one, and all communal areas.

I looked at:

Life right

Outright purchase
Cost of property R2 000 000 R2 500 000
Transfer cost and taxes R0 R135 000
Rates and taxes R0 R2 000-R3 000pm (estimate)
Levy R4 000 R4 500

Life rights costs R500 000 less in this example; there are no transfer costs and there are no ongoing rates and taxes every month.

With an outright purchase, if you add the rates and taxes to the levies, you will be paying R6 500 to R7 500pm as opposed to R4 000pm.

The saving of R500 000 on capital outlay should, of course, be invested.

If it was placed in a diversified investment strategy (targeting a return of 10% per annum), it could create an additional R2 000 in income per month while still experiencing growth. If this extra income is not needed on a monthly basis, it will just compound in the investment portfolio.

The saving on monthly levies/rates and taxes, would of course also result in needing less monthly income out of your current investments. A reduction in expense of R3 000pm would add five to six years on to the longevity of your assets. The best way to improve the longevity of a retired person’s plan is to reduce their expenses – a little goes a long way.

If you go for life rights, you forgo the capital appreciation in the property’s value. This growth is hard to estimate, as residential property valuations vary quite drastically. I would suggest that people consult their financial planners before making the decision.

One of the main benefits of life rights is that if you live to a really old age, and you run out of money, you will not lose your home.

What happens is that the cost of your continued care is deducted from the capital amount you paid upfront. For example, if you paid R1.5 million for a flat, and the village cares for you for an extra few years after your money runs out, after selling the unit your estate will get the R1.5 million minus the care costs. (There may well be other deductions too, such as a sales commission and/or an amount to refurbish the unit for the next purchaser.)

People sometimes avoid life rights because the feeling is that their heirs will lose out on the initial investment. However, I would rather know my parents were being well cared for and that there is no risk of having to put in extra money down the line. It really helps me knowing that’s taken care of.

From a pure numbers point of view, it’s better to invest in a retirement village earlier rather than later.

 

A person buying in at 50 or 72 gets the same value over time, so the younger person will ultimately get a better deal. However, most people are not ready to even talk about it in their 50s.

An added consideration, though, is that most places have a waiting list. You’ll pay a small amount to be placed on it, but if you get the call before you’re ready, you can decline and you’ll be pushed down a spot on the list. But some places have a maximum age restriction while some will say you’re restricted to a smaller unit if you’re at an advanced age.

So it is better to move in before your age becomes a problem, but only you will know at what point you are ready.

The three contracts explained

FREEHOLD

As Rob Jones, managing director of Shire Retirement Properties, explains: “You own the land and building, it’s your responsibility, you pay rates and taxes and there is a registered title deed in your name. You can leave it to your heirs and any gains in value would be for you. There may be some exit levy to pay to the complex, but it differs from place to place.”

SECTIONAL TITLE

With this option, says Jones: “You own a portion of the building, say an apartment or townhouse. You will have a title deed and you can leave it to your estate. You are responsible for internal maintenance, while the body corporate takes responsibility for outside maintenance as a general rule. You pay for that in your levies of course. There may be some exit levy to pay to the complex, but it differs from place to place.”

LIFE RIGHTS

“Essentially it’s a lease for the rest of your life,” says Jones. “You’re paying upfront for the occupation of the building for you and your spouse for the remainder of your lives.”

Details differ from village to village, but usually it means that if you pass away and your unit is sold, your estate will get back the amount you paid, but not any portion of the increase in value (gain).

“In some estates a share of the profit will be paid to your estate, in others you will get back a bit less than you originally paid,” says Jones.

The levies cover all external maintenance, rates and taxes and common service costs such as security and common garden maintenance. Additional services are often included such as meals, cleaning and laundry.

Life rights can be a bit cheaper as a capital investment, says Jones, because the developer knows he can make profit over and over again, as he resells the unit over the years. “In essence, the life rights village owner wants to look after the building because he wants to resell it.”

To read the rest of the article on Moneyweb’s website, click here.

 

 

Shire offers development consulting to Property Developers in the planning and the execution of all key elements of new retirement villages. To contact us, click here.

A NEW PODCAST SERIES: RED WINE & BLUE JEANS

A new podcast series: Red Wine & Blue Jeans

September 12, 2022
, , , , , Residence & Lifestyle, Shire

Founded, sponsored and hosted by Rob Jones from Shire Retirement Properties and Lynda Smith from Refirement Network, Red Wine & Blue Jeans, is a 6-part series of podcasts that explores how to live the second half of life in the best way possible. Listen to the stories of people who, like red wine and blue jeans, just get better as they age.

Episode 1

To listen to a short conversation between Rob and Lynda about why they wanted to do this series, click here.

Episode 2

Executive Director, Board member and volunteer: Karen Borochowitz from Dementia SA, discusses her journey with her mother who was diagnosed in the early 90’s with dementia at the age of 62. She passed away at 83 after living with dementia for 21 years, a time which had a profound impact on Karen’s life. To listen to the conversation with Karen, click here.

Episode 3

Arthur Case has had a variety of careers. Firstly he worked as a human resources executive. He became a CEO in the pharmaceutical industry and then worked as a consultant. He eventually moved into the retirement industry which he left at the age of 66. Arthur has reinvented himself as an entrepreneur and has more time now to pursue his hobbies, one of them is to explore the world on a motorbike. Listen to Arthur’s story over here.

Episode 4

Dr Jim Leatt had a prestigious career in academia. His fields of interests were religious studies, industrial relations and applied ethics. In 1985 he was Deputy Vice Chancellor and Vice Principle at UCT and in the early 90’s was appointed Vice Chancellor at the University of Natal. In 2008 he was asked to help turn around the University of Venda. In 2021 he published his book: ‘Conjectures – Living With Questions’, which is a written legacy to his lifelong exploration of the meaning of life. Click here to listen to Jim.

Episode 5

Jennifer Webster was diagnosed with Stargardts disease at the age of 10, a juvenile onset form of Macular Degeneration. She managed to complete mainstream schooling and has a BA Honours from Rhodes University. Married with grown up children she now spends her time helping to find solutions and encouraging others along the journey of vision loss.

Listen to Jennifer over here.

Episode 6

Simone Le Hane has come a long way from growing up under apartheid. She attributes her strength and determination to get on in life, to the older women in her family who were wise and feisty roll models. Simone studied at UCT which was the start of her lifelong learning. Her first job was at Shell and she was eventually recruited by the Department of Finance under the new democratic government and in 2000 was instrumental in the creation of the modern national treasury. She has had an illustrious career in the corporate and government sector. Now at 67, she is reinventing the next chapter of her life. Click here to listen to Simone.

 

THE CLUBHOUSE IN A LIFESTYLE AND RETIREMENT VILLAGE

The clubhouse in a lifestyle and retirement village

September 5, 2022
, , , Development & Sales, Residence & Lifestyle, Shire

As todays’ retiree’s lifestyle preferences continue to change, retirement offerings will have to adapt. The major difference between the former traditional retirement properties and those being developed today boils down to these lifestyle changes.

One of many amenities that constitute a successful lifestyle and retirement village, is a clubhouse. The clubhouse is not a luxury, but it summarises how a happy and healthy lifestyle should be.

A clubhouse is, in fact, the hub of all recreational activities under one roof. It is a place where each member of the family can find their space. It usually consists of a library, restaurant, chapel, gym, conference room and possibly a heated swimming pool and a hair & beauty salon. Apart from this, in many of the modern designs, there are outdoor courts. A one-roof solution for all recreation and fitness activities of a community.

Clubhouses are a great way to socialise. Since these clubhouses provide a common area to gather and engage in activities, it often brings people together. Moreover, it makes socialising pretty much easier without even going out of the gates of the community where you live.

For fitness enthusiasts, clubhouses are a great deal. This is where the gyms usually fit in. Most lifestyle and retirement villages come with a world-class gymnasium. With modern and good pieces of equipment, it helps in remaining fit and healthy.

Yet another advantage of having a spacious clubhouse is that it contains event holding spaces. Usually, there will be large open areas in a clubhouse which is used for gatherings and various social events.

For residents who enjoy reading, a library eliminates the need to go out of the estate in search of public reading spaces.

A clubhouse in a retirement village is a place which fosters community living. It brings people out of their homes and enables them to form part of a greater community.

These days people are more selective when it comes to buying a retirement home. Buyers are on the lookout for many factors and of course all of these factors together contribute to the value of their purchase. One such factor is the availability of a clubhouse. It has turned from a luxury to a necessity and thus an elementary part of retirement village living.

Shire Retirement Properties (Pty) Ltd (Shire) is based in the Western Cape Province of South Africa and specialises in the provision of a range of services focused exclusively on the retirement industry. To view the villages that Shire is involved with, click here.

WORKING FROM HOME COULD IMPACT YOUR RETIREMENT PLAN

Working from home could impact your retirement plan

July 15, 2022
, , Residence & Lifestyle, Shire

WellCents wrote:

“If you’re working from home during the pandemic, and the “new normal” becomes permanent, you should contemplate how this change could affect your retirement strategy.

First, it’s important to consider the difference between working from home (WFH) and working from anywhere (WFA). In a WFH arrangement, employers may still expect workers to come to the office from time to time. But in a WFA arrangement, employees have the flexibility to live and work from wherever they choose.

A WFA scenario offers maximum freedom and may allow a worker to relocate to another part of the country (or even outside of it altogether) to take advantage of a lower cost of living.

WFA is not nearly as common as WFH. In 2019, few companies based in the U.S. offered WFA arrangements, with about 95% of remote employees required to work from a set location. However, Household Pulse Survey data collected by the U.S. Census Bureau shows that more than 35% of U.S. households have engaged in more frequent telework than prior to the COVID-19 crisis.

Remote Work Can Be a Retirement Game-Changer 

Working anywhere other than the office may reap significant cost savings for employees in a variety of areas, including:

  • Cheaper housing
  • Lower transportation costs
  • Fewer socializing and entertaining expenses
  • Reduced purchases and upkeep for work attire
  • Greater ability to handle child and adult caregiving duties

Retire sooner. With a substantial drop in housing or caregiving costs, you may find that you can retire sooner than you’d hoped. Taking advantage of a lower cost of living can bend the retirement timeline significantly. You may not have to move very far for this to make a big difference, particularly if your job requires you to reside in a major city, where the cost of just about everything is often much more expensive.

Work Longer. On the other hand, WFH may give some the flexibility and desire to continue working past retirement age. For example, if an employee has health or mobility limitations, working from home may make it easier to stay in the workforce longer. Additionally, employees nearing retirement may have parents who require assistance, and having the kind of flexibility that WFH or WFA affords them may allow them to fulfill their family obligations while remaining on the job.

The pandemic has created significant hardships and burdens for many families. The possibilities for continuing remote work may constitute a bright spot in the darkness.”

If sitting around just isn’t your thing, then retirement is the perfect time to live out the dreams you may have put on hold. Simply filling empty hours with pointless recreation may feel like the opposite of freedom for many of the 72 million U.S. baby boomers, who have worked their entire lives. Launching your own business may be your ideal “retirement lifestyle.” Here are some good reasons to start a business in retirement.

 

 

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