As a Scotsman who has called Australia home for the last 17 years, I still occasionally cling to the motherland. I am reminded of Robert Burns, Scotland’s Immortal Bard, who offered one of the best quotes about life: “Life is but a day at most.”

I am nearing the stage in life (a few more years to go) when I will need to consider what my retirement and aging accommodation will look like. I have had the privilege of working in the aged care and retirement living sector for almost 12 of the 17 years I have lived in my adopted homeland. Soon, I will be part of the demographic, or “grey tsunami,” that will require a place to reside post-kids and downsizing. By 2020, Australia was projected to have more people aged over 65 than under 18, with the over-65s making up approximately 25% of the population.

“The traditional model of aged care may no longer be viable.”

We’ve had the Royal Commission into Aged Care, and while it made some valid recommendations, are we seeing any of these being implemented in aged care facilities? Not really. The dynamics have shifted so much in just five years that I’m not sure the traditional model of aged care will be considered viable anymore. The design recommendations made by the Royal Commission may already be outdated.

Post-COVID, there has been a laser-like focus on what the aging population wants out of an Independent Living or Retirement Living environment. The experience of community living, with services that enhance wellness and quality of life, is much sought after. Recently, I had the pleasure of listening to a CEO of a retirement village company who said that for their latest Gold Coast development, two key appointments were necessary: a concierge manager from a 5-star hotel background and a services concierge manager. “What does that tell you about where we are heading?” With a shortage of around 166,000 workers required to fulfil the needs of the current market, perhaps the shift in value offerings will attract people with different backgrounds and skillsets, potentially easing the labour shortage.

So, what model do you choose? Community housing, land lease, or others? The emerging legislation in land lease communities will ensure that transparency and disclosure of information are improved. The eldest daughter, often heavily involved in deciding where to place “mother,” or the emerging trend of couples making joint decisions, should find the process less fraught with confusing rhetoric.

“There is a dynamic shift towards offering the over-55's an experience that provides wellness, services, and community—and they are prepared to pay for it.”

The post-COVID view of the world seems to be to get on and enjoy this stage of life and all it has to offer. The value proposition, if clearly articulated and outlined by the operator, is key to attracting customers. There has also been a shift away from developing within certain catchments of amenities, demographics, and median house prices. One operator confirmed to me that 68% of new customers are coming from outside the catchment, attracted by the clearly defined value proposition.

Let’s parallel this discussion with the housing affordability issues in the market today. Recent statistics show that on average, 1.5 people move out of their home into a retirement independent living environment, while 2.9 people move into the home that has been vacated. “Surely, we must be able to create a connection or legislation that would allow these homes to be more accessible to first-time homebuyers.” If we then partner with an organisation like Homes for Homes, a not-for-profit that drives the supply of social and affordable housing, we could make a significant impact.

There is no doubt that the over-55s landscape is very different from what it was five years ago. The adoption of new technology in this space, particularly in dementia care and the provision of onsite services and monitoring, has changed, aligning with one of the recommendations from the Royal Commission.

The sector itself is estimated to be worth $29.9 billion; by comparison, the defence sector in Australia is worth $43.5 billion. The sector is not going to diminish in size—the “grey tsunami” is coming, if it hasn’t already begun. This means planning and preparation are crucial.