Retire Abroad: 5 Southeast Asian Countries With Low Cost Of Living (Huffington Post)

Wendy Justice was only 5 years old when she first fell in love with Southeast Asia. The love affair was sparked by her grandparents' stories and photos following a trip to Thailand. "I found the architecture to be amazing, and the culture was fascinating," Justice remembered. As an adult, Justice got to experience the beauty of the region first hand during a three-week vacation when she was 49. "I was so sad when I had to return!"

Now 58, Justice has found her way back to the area ... as a retiree. She and her husband David, 54, have retired abroad, traveling around Southeast Asia for the last seven years. The two retired nurses have left the States in favor of a peripatetic lifestyle, calling various cities like Chiang Mai, Thailand and Nha Trang, Vietnam home for a few weeks or months at a time.

"At this time, I am in Malaysia, but will be going to Thailand in a couple of weeks and plan to spend the winter in Hanoi, [Vietnam's capital]," Justice said via email. "I’m not your typical retiree in that regard. I find the entire area so interesting that I haven’t made the decision to settle down permanently in one location."

The New York Times reported that an estimated 100,000 people retired to Asia from other countries in 2010. People who want to retire abroad are drawn to Southeast Asia for a number of reasons, with its low cost of living being a particular standout, Kevin Hockton, InternationalLiving.com Asia Contributor, told Huff/Post50 via email.

"It’s conservatively one-third [to] one-quarter of what you pay back home for most goods, services and entertainment," Hockton wrote. "Your dollar goes a lot further here and a good way to describe it would be third world prices in first world countries."

Justice agreed, sharing that since moving abroad in 2005, her monthly expenses in Malaysia, Thailand and Vietnam haven't gone beyond $1,500 per month. "A couple could retire well in this part of the world with well under a million dollars in savings," she wrote. "Our monthly expenses in Nha Trang, Vietnam, for example, were consistently less than $800 a month for the two of us, and that included traveling and seeing the sights, taking private lessons in Vietnamese and eating almost every meal in restaurants, plus living in a very safe and comfortable furnished one-bedroom serviced apartment just three blocks from the beach with Internet, cable TV, air-conditioning and twice-weekly housekeeping."

Who can beat that? But don't get too taken with the idea of super affordable living; there are a few things to consider before you pull up stakes and retire abroad in Southeast Asia.

Along with climate and distance from home, Hockton of International Living provided a list of concerns retirees should address before they decide Southeast Asia is for them:

• Language Barrier: While English is spoken in many Southeast Asian countries, not everyone is fluent in the language. This can be especially troublesome when trying to rent or buy property; instead of dealing with property owners by yourself, Hockton said it's best to go through an agent to make sure everything is done legally.
  But the language barrier doesn't necessarily get in the way of friendships. Both Hockton and Wendy Justice noted how friendly Southeast Asians are to foreigners.
• Length of Visa: How long you can stay in your new home away from home is dependent on the country's visa policies. Malaysia's Malaysia My Second Home(MM2H) program offers a renewable 10-year social visa to eligible applicants.Thailand offers retirement visas of one year for people over the age of 50, but has a number of requirements, including proof that you have a source of income worth at least 65,000 Baht (more than $2,100).
• Ease of Banking: Before Justice moved to the region, she had to get her financial house in order, she remembered. "I had all my business accounts set up so that I could access them online –- banking, credit cards, everything. I scanned every important document that I could think of -- from the past several years of tax returns to my driver’s license and passport -- so if needed, I could access everything from my email."
But realize there might be restrictions on transfers at foreign banks; some foreign banks can hold Social Security checks for up to four weeks.
• Medical Options: "As you get older medical care is something that becomes extremely important in deciding where you live and retire to," Hockton wrote. Southeast Asia is home to some of the top medical facilities in the world;medical tourism is big in places like Thailand thanks to its affordability and high-quality care.
  Make sure where you retire will have access to high-quality facilities used to treating foreigners (to avoid language barriers during a potentially stressful time if you encounter an emergency).
• Ease of Renting Or Buying: With a move this big, it's important to do your research, Hockton stressed. "Depending on where you are going it’s as easy as typing 'Penang property' or 'Phnom Penh property' into Google. A plethora of sites magically appear advertising an entire spectrum of properties," he wrote.
  "There are also great blogs [and bipartisan organizations] for all of these places where expats and travelers talk about their experiences. In Penang, Malaysia for instance there is the International Women’s Association, formally the American Women’s Association. In Cambodia, Laos, Indonesia, Malaysia
  Thailand and the Philippines there is InterNations. Again, if you are prepared to spend a little time doing your research it could save you days or weeks when you eventually move to you new destination."
  
  
  Hockton recommended keeping the following in mind when it comes to property in Southeast Asia: most rentals and the items/fixtures inside them are negotiable (bargaining is part of the culture there); landed property is more susceptible to break-ins than condos; and never pay a deposit until you see the property first.

If you're still considering calling Southeast Asia home, Hockton has one last piece of advice for you.

"Come and visit!" he wrote. "Southeast Asia is a big place. It's culturally and ethnically different, and it's completely different from anything that you will experience in North America. Come visit, hit a few countries if you can in the process and stay a little while in each place to get a feel for them."

Hockton shared the top 5 Southeast Asian countries where retirees can enjoy a low cost of living. 

1. Malaysia

Pros: Malaysia has excellent infrastructure, a large community of expats and a great social scene, according to InternationalLiving.com Asia Contributor, Keith Hockton. The country is also incredibly hospitable to expats looking to call Malaysia home. A government program known as MM2H, or Malaysia My Second Home, offers a renewable 10-year-long social visit visa for eligible applicants.

Cons: Malaysia requires a lot of driving, so if you're more of a public transportation person, this destination may not be for you, says Hockton

2. Thailand

Pros: Along with first class medical and dental facilities, Hockton says this warm-weather country boasts stunning beaches; good roads and airports; and great food. "Bangkok is one of the most energetic cities in the region with restaurants and bars levels above any of the other capitals," Hockton explained. "Its shopping malls are state of the art and better than any other anywhere that I have seen."

Cons: English isn't widely spoken in Thailand, so unless you speak Thai, expect to have some difficulty communicating with locals.

Finding property to lease or own is difficult as well, according to Hockton. "Expats can’t buy landed property, and condos can only be bought leasehold," he wrote. "It’s a complicated process and the Thai government has been looking at foreign ownership very closely as of late."

3. Philippines

Pros: The country's large expat community enjoys its natural beauty: The Philippines is home to breathtaking beaches, islands, coral reefs and mountain ranges, according to Hockton.

Cons: Crime is high in the Philippines, and "kidnapping is a major industry," Hockton explained. There's also a vast gap between the rich and the poor that adds to the country's high crime rate.

4. Indonesia

Pros: Expats are slowly but surely exploring other cities in Indonesia outside of popular Bali, Hockton writes. "Jakarta has amazing restaurants, bars and clubs which up the anti on a city that is already pulsing with energy and enthusiasm. Yogyakarta, the 8th century capital, is just breathtaking and center for all things artistic -- fine art, ballet, drama, music, poetry and puppet shows."

Cons: Only Indonesian citizens can buy property, forcing expats to lease, according to Hockton. And for those retirees hoping to open up a business to supplement their savings, good luck. Hockton told Huff/Post50 a business culture rife with bribery and corruption makes it hard to run a legitimate operation.

5. Cambodia

Pros: "Phnom Penh is an exciting frontier city, which has surprisingly good hole in the wall bars, great restaurants and fantastic French colonial architecture," Hockton reports.

Con: "Expats only get a one-month visa when entering the country and development is taking place at a fast rate with seemingly little planning," Hockton says.

Original URL Link: http://www.huffingtonpost.com/2012/11/30/retire-abroad-southeast-asia_n_2162228.html#slide=1779046

Top 6 Affordable Places to Retire Abroad in 2012; 2 in Asia

There are many benefits and advantages of retiring overseas. Launching a new life in a new country at this stage of your life can mean better weather, new adventures and opportunities, and new friends. You can realize the beach life you've dreamed of for decades and sometimes even realize some significant tax savings by relocating overseas.

However, the primary advantage of retiring to another country can be a reduced cost of living. In some places overseas the cost of everything, including rent, groceries, a retirement home, medical care, health insurance, and dinners out, can cost a fraction what they cost in the United States.

If living within a budget is a priority for your retirement planning, don’t despair. Even on a very limited retirement budget, or perhaps even Social Security alone, you can afford a comfortable, interesting, fulfilling, and adventure-filled retirement lifestyle if you know where to look to find it. Here are six affordable places to retire overseas in 2012, 2 of them in Asia:

Kuala Lumpur Skyline at Night

Kuala Lumpur, Malaysia

Monthly budget  : $1,250

Monthly rent       : $500

This developed Southeast Asian city is one of the world's most exotic and, at the same time, comfortable places to retire anywhere in the world. Kuala Lumpur qualifies as one of the best places in the world to live what can qualify as a luxury lifestyle on even a very modest budget of as little as $1,250 per month.

Life is different in the heart of the Malaysian peninsula than in the West. When you go to your neighborhood shop, you take your time and converse with the owner, ask about his family, and he asks you about yours. By your second or third visit, you'll be recognized and waved to when you enter. You may even be invited to dinner, or at least to share a cup of kopi(coffee).

Unlike many places in Asia, foreigners are genuinely welcomed in Kuala Lumpur, and Malaysia is the only country in this part of the world that makes full-time residency a straightforward option for foreign retirees. Language isn't a problem, as almost everyone speaks adequate English. Medical care is among the best in the world, and Malaysia has developed an important and growing medical tourism industry.

Chiang Mai, Thailand

Monthly budget   : $1,100

Monthly rent        : $400

Consider settling down in Chiang Mai, perhaps the world’s most affordable place to retire comfortably. A retired couple can live here for as little as $1,100 per month, including rent and other basic expenses.

A frugal person could live here on much less. I know a single American man living in Chiang Mai on only $200 a month, with half of that going for rent. He makes a sport out of spending as little as possible. Another Thai American woman who bought an apartment in a small town outside Chiang Mai manages on her Social Security income alone, which is $600 a month. These are special cases, but you can live very cheaply in this part of Thailand.

House and apartment rentals can vary a great deal. You can rent a small home outside Chiang Mai for $100 to $150 a month. For a house or apartment that most American retirees would be happy living in, figure about $400 a month.

Original URL Link: http://money.usnews.com/money/blogs/On-Retirement/2011/11/29/6-affordable-places-to-retire-abroad-in-2012

The World’s Top 10 Retirement Havens (Wall Street Journal)

NUMBER 4: MALAYSIA

In Malaysia, you can live quite comfortably. For instance, you can rent a sea-view apartment on Penang Island for $1,000 a month. Plus, Malaysia has a unique retirement benefit called the My Second Home program, which is open to all foreigners who want to retire to one of Asia’s best-value destinations, International Living said. And while it might not seem so, the editors said Malaysia is also an easy place in which to integrate. You’ll find plenty of locals who want to practice their English-speaking skills. And you can catch a feature movie — in English — for $4. And there’s a good infrastructure in place for retirees. There’s Internet access, quality roads and cell phone coverage, among other must-haves for ex-pats.

NUMBER 9: THAILAND

As with Malaysia, it can be fairly inexpensive to live in Thailand. According to International Living, you can live comfortably for less than $1,000 a month on a powder-sand beach in Thailand. In fact, it’s likely you could find “really nice, liveable place just about anywhere in the country” for about $500 a month. As with Malaysia, you’ll find plenty of locals happy to practice their English with you; so integration shouldn’t be too much of an issue. And, for excitement, what could top Bangkok? “If variety is the spice of retired life, than Paris, Panama City, the expat communities of Mexico, Medellin in Colombia, and Bangkok, Thailand, should be top of your list,” International Living researchers said.

Original Link URL: http://www.marketwatch.com/story/the-worlds-top-10-retirement-havens-2012-01-19

Southeast Asia Woos the World (NY TIMES)

Kuala Lumpur Skyline at Night

KUALA LUMPUR — With Southeast Asian countries from Vietnam to Indonesia promoting themselves as ideal retirement destinations, the old and not-so-old are being courted vigorously by the region’s economic developers.

This wooing also has created a niche market for real estate, from retirement villages in the Philippines to apartments and bungalows suitable for the elderly in Thailand and Malaysia.

“There are maybe 100,000 people across Asia who have retired to the region from elsewhere, but it’s really hard to say exactly,” said Andrew Ness, executive director of CBRE Research Asia in Hong Kong, a division of the CB Richard Ellis real estate agency. “Thailand is the big apple though, with everyone basically trying to pinch market share from there.”

Thailand was the first country in Southeast Asia to start courting retirees, a natural progression for its long-established tourism industry.

“People came here backpacking in the 1960s and ’70s, then brought the kids in the ’80s and ’90s,” said James Pitchon, executive director of CBRE Thailand. “Now they are the ones looking for a place to retire and already have a very positive image of the country.”

And Junaida Lee, deputy secretary general of the Malaysian Tourism Ministry, said: “It’s the baby boomers we are targeting. They are top priority — those from the West, such as the U.K., but from Japan, too.” She also is responsible for the Malaysia My Second Home retirement program for foreigners.

Japanese retirees also have been pursued by the Philippines, where a $10 million retirement village is being planned for elderly Japanese on Tablas, an island in Romblon Province, about 350 kilometers, or 215 miles, south of Manila. Sakura Retirement Investments of Japan announced the 40-villa project in October, saying it would be built by Smart Ventures, an Australian developer. The complex is to include a Japanese restaurant, a private beach, a gym and sauna center, and its own security staff, as well as a nurse assigned to each villa.

Medical facilities are among the key factors in attracting retirees. “One reason why Phuket in Thailand has taken off as a place for retirement is that it has pretty good hospitals,” Mr. Ness of CBRE Research Asia said. “It also explains why other places, such as Bali in Indonesia, haven’t really taken off.”

Malaysia says it has attracted about 12,700 participants since it started a retiree program called Silver Hair in 2002. It introduced Malaysia My Second Home in 2006.

“Retirees and other long-stay residents spend much more” than tourists, Ms. Lee said. “They pay rental or buy property, bring business, use local services, generate domestic tourism as they travel round the country, and generate inbound tourism too, as their friends and relatives come to visit.” Participants are required to have certain minimum income levels, depending on their age. For example, anyone older than 50 must have 350,000 ringgit, or $104,000, in assets; a monthly pension of 10,000 ringgit, which may be deposited into Malaysian banks tax-free; and must keep 150,000 ringgit in a fixed-interest account.

A third of that deposit can be withdrawn after one year. In exchange, participants get a 10-year resident’s visa and permission to work as many as 20 hours a week. They also gain the right to buy property, subject to state laws. And while buying real estate is not mandatory, “accommodation is very cheap in Malaysia,” said Steve Collins, a retiree from Enfield, a town in Middlesex north of London, who joined the Second Home program. “For £50,000 you can buy a very good home outside of Kuala Lumpur.”

The housing stock in the suburb, which is popular with expatriates for its restaurants and golf courses, typically consists of low-rise condominium buildings constructed in the past 20 years, villas and semi-detached houses. Prices are typically about 700 to 800 ringgit a square foot, or 7,500 to 8,500 ringgit a square meter. “I think the cost of living here is about one-third of what it is in the U.S. or Japan,” said Toshiyuki Niwa, a Japanese-American who retired to Malaysia in 2007 after working for the United Nations for 37 years. “This is a definite plus.” In Thailand, the financial qualifications for the foreign retiree program are a deposit of 800,000 baht, or $24,000, and a monthly income of 65,000 baht, regardless of age. Participants then receive a one-year visa, which can be renewed. Thai real estate laws state that only 49 percent of the units in any apartment building may be owned by foreigners, regardless of whether they are members of the country’s retiree program. And foreigners are not permitted to own land.

In the Philippines, the Special Resident Retiree Visa Program is available to any foreigner 35 years or older. A deposit of $50,000 is required for anyone younger than 50; $20,000 for anyone older. Anyone accepted in the program gets permanent residence status and can deposit his pension in a Philippine bank tax-free. But the Philippines, too, bans foreign ownership of land. Vietnam has also begun promoting retirement options, though “Vietnam is a little immature as a market for this,” Mr. Ness of CBRE Research Asia said. “Their resort property is mainly aimed at the Vietnamese themselves.” 

Looking at the region in general, “Malaysia offers a much more attractive legal package,” Mr. Pitchon of CBRE Thailand said, “but Thailand still has roughly double the numbers of people retiring here.” “What makes a program successful is that it must be a total package,” Mr. Pitchon said. “It must be easy to get a house, must have good medical services, a good banking system so that you can get your pension transferred easily, and there must be an availability of imported foodstuffs from back home.”For many, retiring to a place in the sun is also about some less easily defined factors. “For us,” said Mr. Collins, “we knew we were in the right place when we came back here after being away in Cambodia. We got to Malaysia and felt, ‘Ah, home again.’ After that, coming here seemed quite a natural decision.”

Original Link URL: http://www.nytimes.com/2010/01/22/greathomesanddestinations/22iht-remalay.html?pagewanted=all&_r=0

Why Thousands of Australians are choosing to Live in a Retirement Village?

Is a retirement village a term that confuses you? Do you associate retirement villages with nursing homes and aged care? If you do, stop right there! There is nothing further from the truth, writes Shae Baxter

If you believe that retirement villages are just a nicer way to sugar-coat nursing homes, think again. A retirement village and a nursing home are polar opposites, each having distinctly separate infrastructure, facilities, services, amenities and of course lifestyle.

So then, what exactly is a retirement village?

A retirement village, also referred to as a retirement community, is a form of residential housing built and designed specifically to cater to the needs and lifestyle of people aged 55 and over. They are an emerging community that began appearing in the 1970s and 80s.

Can you imagine coming home to a garden pruned and weeded, the roof cleaned of debris, building and property maintenance at your beckon call, and a bus driver to take you to the local shops?

This and more without you lifting a finger…

It’s a reality and over 160,000 residents around Australia come home to this everyday.

Why? Because they choose to live in a retirement village and the aforementioned services are just some of the benefits you may enjoy being part of a retirement community.

In the past, most residents entered into these villages aged in their seventies as part of a move to downsize, decrease maintenance responsibilities, experience a greater sense of safety and security, or for health and lifestyle reasons. Today younger retirees from age 55 are seeing the benefits of relocating to a retirement village. Not only has this lifestyle shift been of benefit to residents, but it has also freed up residential housing for younger families, stimulated the local economy and reduced the pressure on aged care, medical and hospital infrastructure.

According to the industry’s national peak body the Retirement Village Association (RVA), one of the great successes of the industry is that it is a unique and innovative model with an emphasis on lifestyle that also reduces demand on local services for seniors.

In Australia today the industry represents over 1,850 villages and communities that are supported by both the private sector and non-profit organisations. These communities house and support more than 160,000 people over the age of 55 who report very high levels of satisfaction with their experiences in a village.

Why more and more Australians, particularly baby boomers, choose to live in a retirement village

What is clear is that people enjoy living in retirement villages. More than 95 per cent of people who live in retirement villages indicate village life meets or exceeds their expectations.

Choice is an important part of what retirement villages in Australia represent. Unlike a move into residential aged care, which is usually predicated by a sudden decline in health or escalation of a neurodegenerative disorder, it is important to note that consumers choose to live in a retirement village and generally view this choice as a way of enhancing their quality of life.

Among these factors are security and support. Australians are living longer than ever before. The older the individual, the more health issues they are likely to experience. As people age and health needs increase, the great lifestyle offer, down-sizing the requirement for maintenance of property and grounds, being able to ‘lock and leave’ for travel and social interaction with like-minded and similar aged people, becomes very important.

What are the different types of accommodation options in retirement villages?

There are a range of accommodation options in retirement villages that are sure to suit your lifestyle and needs. They all have different benefits depending on exactly how you want to live your retirement:

Independent Living Unit (ILUs) or Villas is generally used to describe a retirement village residence. This can be a one, two, three or even a four bedroom dwelling that may form part of a high or medium-rise complex, a terrace, be semi-detached or completely stand-alone depending on the nature of the development. ILUs are best suited to people that are able to care for themselves. These units are ideal for active retirees who can live their life independently. They provide the lowest level of care, although a range of personal services may be available on request.

Serviced Apartments or Assisted Living Units provide supported accommodation for residents who require some assistance with daily living. These are generally one or two bedroom apartments, where services such as cleaning and laundry assistance are offered. Meals are provided in a communal dining room setting, although a small kitchenette is usually included within the apartment.

These units provide the highest level of care, usually including the regular provision of a range of personal services.

Lifestyle Village specialises in creating and managing affordable, master planned resort communities for people who are too young, too active and too independent for traditional choices. You'll find a lifestyle village is the perfect place to enjoy the best that life can offer, whether it's active outdoor pursuits or relaxing in pleasant surroundings with friends and family.

Combining outstanding resort facilities with stylish new homes in a fully landscaped environment, a lifestyle village strikes the perfect balance between privacy and independence whilst encouraging a vibrant and rewarding community in which to live.

Co-located village is a retirement village that has access to residential aged care facilities and services. Many not for profit organisations have retirement villages co-located with aged care facilities.

Other co-located villages can also have facilities and services to provide accessibility to all levels of care including Community Based Care.

Confusion can arise because low level residential care facilities sometimes also describe their accommodation as assisted living units. Aged care and nursing homes are regulated and partly funded by the Commonwealth Government and different legislation, admission criteria and funding arrangements apply.

The Home and Community Care (HACC) program aims to provide a basic range of maintenance and support services to help older people stay at home. The services are provided by government, community, privately and by church or charitable organisations throughout Australia, including rural and regional areas. The HACC program funds ethnic specific services in all states and territories.

Choosing a village you can be confident of

When the idea of a retirement lifestyle begins to evolve, it’s important that people start researching their options to decide what sort of lifestyle they want for their latter years. The option of a retirement village is becoming more and more favourable by discerning older Australians. Prospective residents are strongly advised to become informed and consult widely for whatever option they choose. If the retirement village option is favoured, then it is important to consult with lawyers, financial advisers, doctors and most importantly family and friends.

In selecting a retirement village it should not just be a case of being swayed by the marketing hype and documentation. A visit to the village and discussion with existing residents is also recommended.

The process of choosing an appropriate retirement village may seem daunting to you at first but rest assured there is plenty of help at hand. One sure fire way to make the decision process easier for you is to determine whether the village being considered has achieved an accredited status.

What does this mean and why should you look for an accredited retirement village?

The benefits of living in an accredited village

The benefit of knowing that a village has achieved accreditation centres on affording you peace of mind and confidence that your village is being managed and operated professionally. After all, you have made a significant financial and lifestyle investment in the village so you want to ensure that your new home meets industry standards. Other important benefits of living in an accredited village are:

1. Ensuring the processes and procedures employed by the village are in accordance with relevant regulatory requirements. 
   
   
2. The village is a safe and harmonious environment to live in. 
   
   
3. The village strives to improve its effectiveness and the delivery of service to you through the operation of a continuous improvement plan. 
   
   
4. A guarantee that village staff is trained, professional and ethical in their provision of services and care to you.

An increasing number of Australians are approaching the RVA to enquire about whether particular villages accredited. You should be one of them.

Making the choice to choose an accredited retirement village

To achieve accreditation, a village must go through a thorough and extensive application process. Therefore, what a village must go through and achieve to become accredited should give you peace of mind about the commitment it makes when considering its professionalism and keeping in line with industry best practice.

The fact that a village is accredited should make it an easier decision for you. Downsizing and moving into a communal lifestyle after years in a family home can be daunting. A smooth transition with minimal disruption is what’s desired and knowing that a village is accredited will help immensely with this transition.

“Is this village accredited?”

This is the question you should ask before moving into a retirement village.

For the present and the future, the RVA is committed to informing and educating Australians about why retirement villages are great places to live and will seek out opportunities to spread the word. The RVA will be launching an industry first consumer portal website where you and other prospective residents can go to answer all your retirement living questions and needs. The new website is due to go live in May 2011.

In the meantime, you can visit www.rva.com.au and search for retirement villages online or call 1800 240 080 for further information.

Shae Baxter is the Web and Communications Manager at the Retirement Village Association (RVA). Shae is responsible for managing the RVA website and is leading the project for the development of the new consumer portal website to be launched in May 2011. To contact Shae directly, please email shae@rva.com.au.

The RVA is the national body that represents retirement village developers, owners, operators, managers and industry specialists nationally. Its role is not only to work with the government agencies, but to represent the industry to ensure environments that consumers aspire to live in. The RVA’s core role is to unify and represent the industry to ensure its continued growth and responding to Australia’s massive future housing need for older people.

Original Link URL: http://www.aprs.com.au/lifestyle-news/why-thousands-of-australians-are-choosing-to-live-in-retirement-village

Are retirement villages the answer for the ageing population? (BBC UK)

The social care system is often said to be in crisis. Thousands of people each year sell their homes to pay for the care that the state is struggling to provide. Could retirement villages be the solution for some?

Leslie Wolfendale is quite clear. The 89 year-old describes the move to Willicombe Park Retirement Village in Kent three years ago as the "best move we have ever made."

"We have lived all over - Berkshire, Cheshire and south Wales. But we have never regretted moving here."

Leslie and his wife, Joanne, moved to the village, which boasts 67 one- and two-bedroom properties, a gym, swimming pool and restaurant, from south Wales where he had worked as a managing director of a manufacturing company.

"I didn't think we would ever move to a retirement village, but when you look at the facilities and the way it promotes independent living, we started to think differently," Leslie says.

Friends

The couple, who have three children, five grandchildren and seven great-grandchildren, have tried a host of different activities during their time at the village.

Between them, they have done Tai Chi, exercise classes, aqua aerobics and yoga.

They have also got involved in the social events, which have included themed nights in the restaurant, crossword groups and quizzes.

"You do meet people and become friends. That is very nice. It is important to remain active as you get older," says Joanne, who is also 89.

But she also says it is the support that they get which makes a big difference.

"The bins are collected from outside our apartment, we can have meals delivered to us, anything we want really."

The village also has an in-house care team, which helps residents with activities such as washing, dressing and eating if needed.

The Wolfendales do not need such support yet, but Joanne says it is a great comfort to know it can be easily arranged if they need it.

"It is a reassurance."

Promoting health

Others at the village, run by the Audley group, share their views. Michael Mercier, who is 86, moved to the village 12 years ago after his wife died.

He still works one morning a week doing the accounts for a local business.

"Independence is really promoted here. I swim every day, except Wednesday when I work."

He too has not needed to call on the day-to-day care services available, although he has had some modifications made to his home, including having rails installed after he had a fall.

And it is having this sort of support on hand that helps to keep the elderly independent at such villages

Research by York University has shown that retirement villages have a beneficial impact on maintaining and promoting health.

In particular, the study highlighted reductions in falls, greater well-being because of less social isolation and the ability of villages to provide residents with better access to services such as blood pressure checking, flu jabs and exercise classes.

Swimming is just one of the activities that is available at the village

The attraction of retirement villages is also bound up with the fact that they offer the home-owning elderly a way of staying on the property ladder while getting all the care they need.

Apartments at Willicombe are currently fetching somewhere between £200,000 to £350,000. People buy them and own the property as any leaseholder would.

Maintenance charges - for things such as bin collections, gardening and window cleaning - are high at £600 per month. However, other villages away from the south-east tend to have much lower fees.

Growing sector?

But despite the success of complexes like Willicombe, retirement villages are still few and far between.

Overall there are fewer than 20,000 retirement village properties in the UK. To put that into context, Australia, which has a third of the population, has 160,000 units.

However, there are signs that could be about to change.Anchor, a not-for-profit care provider which has traditionally operated at the lower end of the market, providing home care and running care homes, has started moving into the retirement village sector.

It has recently opened a complex called Denham Garden Village, set in 30 acres of Buckinghamshire countryside.

Anchor has another three in development and sees them as a growth area.

Nigel Hackett, Anchor's head of building development, says: "I think with the ageing population and the way things are moving, there is going to be growing demand."

Nick Sanderson, who is chairman of the Association of Retirement Villages and chief executive of Audley, agrees.

"Retirement villages have not taken off here as they have elsewhere. Getting planning permission can be difficult and I think Brits have an attachment to their homes than is not always seen in other countries.

"But I really believe things are about to change. There is a new generation of older people coming through who were born after the war.

"They have money and will demand more. They won't put up with the status quo."

But that does not mean there are not challenges for such villages.

Richard Humphries, a social care expert at the King's Fund health think tank, agrees they have "great potential" to become an important part of elderly care provision.

But he adds: "I think they need to make sure they get better at providing support when care needs increase in the last few years of life.

"They have not always been so good at dealing with that and if people end up in a care home, it defeats the whole purpose of them."

Original Link URL: http://www.bbc.co.uk/news/health-17923976

As Silver Economy Booms, Retirement Homes Spring Up

When Mumbai housewife Lalita Bhardwaj turned 65, she asked her husband for an unusual gift — an old age home.

After a bit of convincing, her husband Seshadri Bhardwaj, 76, agreed to sell their Mumbai apartment and move to a retirement home complete with housekeeping, catering and doctor-on-call.

The couple has now been happily living in their new home in the foothills of the Nilgiris in the southern Indian city of Coimbatore for the past four years.

"I was tired of cooking, cleaning and paying utility bills. Now I have finally found myself. Life is about annual visits to my children abroad, playing scrabble, reading and nature walking," Lalita Bhardwaj said.

"It is an added bonus that cost of living in Coimbatore is 33 percent cheaper than Mumbai; there is no air or noise pollution, the weather is more pleasant, and you are with like-minded people," she added.

A survey conducted by real estate consultancy Jones Lang LaSalle (JLL) last year involving 52 million urban households in 135 Indian towns and cities found that 24 percent or 12 million households had seniors above 65 years living in retirement homes. It also concluded that demand for such accommodation was estimated at 132,000 units.

India is not alone when it comes to a preference among the elderly to break away from tradition and live separately from their children. Retirees from Singapore to Shanghai are adapting to a life on their own in their sunset years.

While India still boasts of a young population — its median age is 28 — the rest of Asia is aging fast and this in turn will boost demand for retirement homes, say experts.

Asia will account for 63 percent of the world's total senior population by 2050 — a market worth $1.9 trillion, according to the Asia-Pacific Silver Economy Business Report published by Ageing Asia last year, a Singapore-based market research and consultancy focused on the silver economy.

"This is the single biggest opportunity in emerging Asia for real estate players, health care operators, financial industry and more," said Janice Chua, founder of Ageing Asia.

Those in the top 20 percent income bracket would gladly part with their savings to live in retirement homes, according to Tan Ki Hian, a senior living consultant, who is looking to set up a retirement village in Singapore.

As a result lifestyle-oriented retirement homes are springing up all over Asia, in China, India, Hong Kong, Vietnam and Malaysia. According to a 2011 report on foreign investment in China's retirement sector by law firm Clifford Chance, China is currently carrying out the most far-reaching reform of its healthcare sector, with retirement homes a priority sector for private investment.

"The one-child policy in China has created a dependence ratio of six elderly on a single individual, creating a huge demand for self-sustaining retirement homes," said businessman Patrick Cheung, who has set up Jade club in Hong Kong to mobilize investments into elderly care in Asia.

Cashing in on this opportunity to house the elderly, lower-cost Asian countries like Malaysia, Philippines and Vietnam are targeting the affluent retirees in Singapore and Japan where high cost of land and living may be entry barriers.

One such condominium style old age village — Platinum Residences — is being built by Malaysia Pacific Corporation, within close proximity of a hospital in the Iskander region to attract well-off elderly Singaporeans at a lower cost than in their own country, according to media reports.

The Philippines is also wooing Japanese with a retirement village on the Tablas island, 350 miles from Manila, complete with a Japanese restaurant, nursing and security staff, said media reports.

Even in India, local real estate players are luring the 65-plus with luxury retirement homes that provide facilities like a health club, business center, eateries and a travel desk.

One such project is Seattle-based elderly care management firm One Eighty's joint venture with Aamoksh Leisure Living to set up villas in Kodaikanal, in south India.

"Our key differentiating factor is that we want to make old age fun. We will be the Club Med of senior living," said Sumer Datta, co-founder of Aamoksh-One Eighty.

According to the JLL report, there are currently at least 15 retirements home project in various phases of construction all over India. It is clearly an idea whose time has arrived.

Original Link URL: http://www.cnbc.com/id/49704126/As_Silver_Economy_Booms_Retirement_Homes_Spring_Up

Asia Caught Off Guard by Its Aging Population

This is a guest commentary for CNBC.com.

There are significant changes under way in the global economy. The continuing rise of emerging markets is one. Aging populations is another. The latter is gripping not just developed markets, such as Japan and Europe, with possibly dire consequences for financial stability and growth.

In parts of emerging Asia, populations are graying rapidly as well. These countries are equally ill-prepared to face the challenge.

Dale Durfee | Getty Images

China is probably the most worrying. Partly as a result of the country's one-child policy — initiated in 1977 and rolled out nationwide two years later — its demographic turn will be abrupt. By some estimates, the labor force will start to contract in 2015. After years of expanding rapidly, which goes a long way toward explaining the economy's breath-taking growth over the last three decades, this will amount to an outright jolt.

The numbers speak for themselves. Currently, China has approximately 137 million people aged 65 or above. In 12 short years, this will balloon by another 100 million. The ratio of retirees to income earners will jump from 49 percent currently to 69 percent in 2030, assuming that the retirement age remains the same. By 2035, the median age in China will have increased from 35 to 45 years — equal to Japan's median age currently.

But China is not alone. South Korea's working-age population will also begin to shrink in 2015. Taiwan has already seen a sharp rise in the ratio of retirees to income earners, while the country's median age is projected to climb from 37 currently to 56 in 2050, which will make it the oldest population in Asia. Hong Kong and Singapore face similarly daunting demographics — although, in both cases, immigration could yet help mitigate the problem. Even Thailand is past its demographic prime, with the labor force expected to start contracting within the next 10 years.

Diminishing Demographic Returns

There are a number of ways in which aging affects growth. First, a declining labor force throttles economic dynamism. This is particularly true in Asia, where the demographic dividend has for years been a potent driver of economic expansion. For these economies to maintain their accustomed speed, every remaining worker would have to become a lot more productive.

Second, consumption patterns tend to change. People consume the most between ages 20 and 40. As populations age, therefore, household spending tends to cool as well, a situation that poses a challenge to countries trying to rebalance their economies away from exports and investment. Sharply rising incomes can go a long way toward delaying the slowdown in consumption that aging inevitably entails. But that brings its own set of problems, including rising inflation pressures, especially if productivity fails to accelerate.

Third, demographics can have a powerful impact on savings. People tend to accumulate a nest egg over their working lives. Particularly between the ages of 40 and 65, saving rates peak in anticipation of retirement. But, thereafter, it swiftly begins to drop, with savings being drawn down. Japan is already well into this process: its household saving rate has fallen from solid double digits in the 1990s to a rate below that of the United States. In South Korea, too, the saving rate has already started to plummet. With fewer savings available, investment ultimately becomes more costly, making it harder still to maintain economic growth.

Fourth, rapidly aging populations put significant strain on the public finances. Healthcare costs soar and, if not sufficiently accrued in prior years, so does spending on pensions. This can mean an ever higher tax burden on the working population, dampening growth. The IMF, for example, estimates that aging-related public sector costs will climb on average by 4.1 percent of GDP in China and by 7.8 percent in South Korea over the next 10 years, some of the highest such adjustments required in the world.

Act Now or…

Policymakers will need to act, fast, to prepare for Asia's demographic turn. Provisions will have to rise, financed through taxes and direct contributions. Every effort, too, must be made to spur productivity growth to wean the economies off labor force growth as a driver of economic expansion. Debt should be held in check as well, if only because the cost of capital will inevitably begin to rise. Higher interest rates will make even existing, let alone new, borrowing far harder to finance.

Investors, too, should be mindful. It is easy to be gripped by the vagaries of economic numbers released from one month to the next. But something far larger is going on. Parts of Asia face similar aging problems as Europe and Japan. So far, no economy has succeeded in maintaining rapid growth when populations grow old. If this process is managed well, it need not spell doom. But the right tracks will need to be laid at once. Fortunately, there are other countries still waiting in the wings with young and hungry populations. India and the Philippines, for instance, will not have to grapple with such challenges for decades to come.

Frederic Neumann is co-head of Asian Economics at HSBC's Global Research and has been covering regional economies for the past 7 years. He is a regular guest on CNBC TV.

Original Link URL: http://www.cnbc.com/id/49472132