How should we decide where to build a Retirement Village?

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Building a retirement village is a very big investment for all concerned. Anticipating the demand for the units is the big gamble that can leave developers with good profits, or desperately looking at vacant units they cannot sell.

Managing Director of Spectrum Analysis and RVA member, Peter Buckingham, said when it came to deciding where to build a retirement village a logical approach to forecasting demand was a necessity.

“The best way of improving the chances of success is to understand the factors of success for your venture. These drivers are measurable and with some assumptions, a good consultant should be able to forecast the demand for your venture,” Mr Buckingham said.

With the growing ageing population occurring in Australia, and as the Baby Boomers (currently aged 48 to 62) move out of work and into retirement, the demand for independent living units (ILU) will have to increase.

“Not only is it the people down sizing their homes, but there is a new class of well healed Baby Boomers who will want a retirement pad in the country or by the beach, and a base in the city.

“Many ILU sales are now occurring to this younger retirement couple, looking for a quality of life that means they can lock up their city base, and head off into the distance for months on end,” Mr Buckingham said. 

Research has shown that around 5 per cent of the population over 55 look for Retirement Village accommodation, and this is expected to increase to around 8 per cent.

Consultants use statistics such as Census 2006 and population forecasts to determine future demand for the amount of demand for ILU accommodation.

“The supply side can also be calculated over a similar area to the demand forecast, and the difference tells us whether we currently have a shortage or excess, and how this will move over time. This gives you some statistical based view on how well a new retirement village should sell, and whether more should be built and when,” Mr Buckingham said. 

The wise use of statistics gives the industry an ability to use science to forecast what should occur.

“As retirement village development is normally a very large investment, I strongly recommend developers use more than a wet finger in the air when making their decisions,” he said.
For further information visit: www.spectrumanalysis.com.au.

The RVA News Monitor is a weekly feature on the RVA website, and will provide updated stories on issues involving the retirement village industry.

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Insight into Anxiety

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While retirement can be a time of great enjoyment it can also be a time of anxiety for some, raising questions such as, ’What will I do with my time? Will I be financially secure? Should I plan and how far ahead should I plan for?

RMIT University researcher David Delaney has made the study of anxiety a feature of his studies. With a career in nursing and psychology extending more than 20 years, Mr Delaney explains why it’s important for managers and residents in retirement villages to understand the complexities of anxiety in our communities.

Mr Delaney said  many people he knew entering retirement age shared common goals including, finding the need to spend more time with family and friends, travel, clean up around the home, help out their children with childcare, and generally look forward to having more leisure time.

“There appear many aspects to successful retirement such as having a balanced mix of short and long term goals, a diverse mix of interests and friendship groups as well as thorough financial planning,” Mr Delaney said.

According to his research, anxieties appear linked to various factors and may show themselves in various ways. Individuals may become more obsessive about time, order around the house, focus on routines etc.

Excessive worry may also be prominent over time, even irrational worry. People who suffer from anxiety often state that they have a ‘fear of fear’. In this sense, people are acutely aware of the irrationality, but can feel powerless to combat it.

Unfortunately in an attempt to combat these, people may become more withdrawn, limit their social circle and experiences, and become entrenched in a concerning trend of rigid routine.

“Currently those retiring or even approaching retirement age also tend to feel shame in experiencing these symptoms as they come from an age where mental health was not only shunned, but hidden and shamed.

 “Coming from a generation where such issues were ‘kept in the family’ and hidden can make it difficult for someone suffering from anxiety to start asking for help.

“Simple solutions like maintaining diverse interests, having trusted people who we feel we can talk openly and honestly with, and maintaining a sense of control over one’s personal and financial life appear especially helpful in warding off potential anxiety states,” Mr Delaney said.

RVA CEO Jane Holdsworth said the very nature of a retirement village were conducive to residents wellbeing.

“The many and varied activities that are provided within villages as well as the safety, security and support services, promote a very positive physical, mental and enjoyable lifestyle,” she said.

For further information visit Anxiety Recovery Centre (ARCVic) www.arcvic.com.au or Anxiety Disorders Association (ADAVic) www.adavic.org

For further information or to make comment on this story, please email communications@rva.com.au

The RVA News Monitor is a weekly feature on the RVA website, and will provide updated stories on issues involving the retirement village industry.

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Let’s go googling

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It seems like Google may have the answer to even more than we thought.

According to scientists, searching the web triggers key centres in the brain that control decision-making and complex reasoning, and may possibly improve brain function.

Study results from a team of researchers at the University of California at Los Angeles (UCLA) show that searching the internet stimulates brain activity in the middle-aged and elderly.

The results have been described as encouraging by the principal investigator of the study and professor at UCLA's Semel Institute for Neuro-science and Human Behaviour, said Dr Gary Small.

The idea that computerised technologies may have physiological effects and potential benefits for middle-aged and older adults will be welcome news for many.

The study's authors note that their findings are the latest to suggest that complex activity that keeps the mind engaged, such as crossword puzzles, may help keep the brain healthy.

The UCLA researchers tested 24 neurologically normal research volunteers between the ages of 55 and 76, half with experience searching the Internet and half with no experience.

The study participants performed web searches and book-reading tasks while undergoing functional magnetic resonance imaging (FMRI) scans, which record brain-circuitry changes.

They all showed significant brain activity during book reading and web searching, but the Internet-savvy group registered a twofold increase in brain activation during web use when compared with those with little Internet experience.

They said the web-savvy group also registered greater activity in the frontal, temporal and cingulate areas of the brain, which control decision-making and complex reasoning.

"Our most striking finding was that Internet searching appears to engage a greater extent of neural circuitry that is not activated during reading - but only in those with prior Internet experience," said Dr Small.

"A simple, everyday task like searching the web appears to enhance brain circuitry in older adults, demonstrating that our brains are sensitive and can continue to learn as we grow older," he said.

Source: Natural Health Society of Australia. www.health.org.au

For further information or to make comment on this story, please email communications@rva.com.au

The RVA News Monitor is a weekly feature on the RVA website, and will provide updated stories on issues involving the retirement village industry.

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