What’s the Difference Between Retirement Living, Assisted Living and Residential Aged Care?
When it comes to planning for ageing, understanding the different types of accommodation options available is essential. Many families find themselves confused by terms like “retirement living”, “assisted living”, and “residential aged care” — especially when trying to match care needs with financial capacity. This blog explains the key differences so you can make an informed decision that suits your situation.
Retirement Living: Independent Lifestyle, Community Focus
Retirement living (also known as retirement villages) is designed for independent older adults, usually aged 55 and over, who are capable of living on their own but want to enjoy the benefits of a community environment.
Financial Arrangement: Most retirement villages require an “entry contribution”, which may be a purchase, leasehold or licence arrangement. In addition, residents pay “ongoing service fees'“ for maintenance, community amenities, and sometimes optional services.
Level of Care and Support: Retirement living does ”not include aged care services”. However, residents may choose to privately arrange services like cleaning, meal delivery or personal care. Some villages offer access to visiting care providers, but these are not embedded in the service model.
Assisted Living: Support for Daily Tasks
Assisted living (often called serviced apartments or supported living) provides a middle ground between independent living and formal aged care. It suits people who need regular support but don’t require 24/7 clinical care.
Financial Arrangement: Accommodation and services are usually paid privately on a weekly or monthly basis. There is often no government funding or means-testing involved. Costs cover meals, housekeeping, laundry, and basic assistance.
Level of Care and Support: Support may include help with showering, dressing, medication reminders, and access to emergency response systems. However, assisted living does not provide nursing care. Families often choose this option when home care isn’t enough, but residential aged care feels premature.
Residential Aged Care: 24/7 Clinical Support
Residential aged care (formerly known as nursing homes) is for older people who can no longer live independently due to complex medical needs, physical decline, or cognitive impairment such as dementia.
Financial Arrangement: Residential aged care is partly funded by the Australian Government, with residents contributing to the cost of care and accommodation based on their financial situation. Fees can include:
A Refundable Accommodation Deposit (RAD) or Daily Accommodation Payment (DAP)
Basic Daily Fee
Means-Tested Care Fee
You can use the My Aged Care Fee Estimator to see what fees may apply.
Level of Care and Support: Facilities provide 24/7 care, including nursing, allied health, dementia support, personal care, meals, cleaning, and social activities. Staff are trained to manage both high physical care and behavioural needs.
Which Option Is Right for You or a Loved One?
Choosing the right path depends on:
Current and future care needs
Budget and eligibility for subsidies
Lifestyle preferences
Availability of local services
Many families start with home care or retirement living, then move into assisted or residential care as needs change.
How We Can Help
At *Aged Care Conversations*, we help families:
Understand aged care options
Compare costs and service levels
Navigate assessments and fees
Plan smooth transitions
👉 Contact us for personalised support, or explore our comparison tools to find the right accommodation type near you.
