THE anticipated retirement village cost comparison tool has gone online giving users the opportunity to convert retirement village fees to a comparison rent so users can compare different village choices.
The goal of the online tool is help retirees become better informed about what financial information they need to collect from a village operator before making this key financial decision.
Entry fee structure, ongoing fees and exit fee details are all part of the information a retiree needs to have in hand before using the RV Calculator.
Macquarie University researcher Dr Tim Kyng said from that information, the tool will be able to calculate an equivalent rental income stream payable over the term of a person's likely residence.
"The idea of the calculator is to convert the complicated fee structure into something easier to understand, namely a comparison rent," Dr Kyng.
Dr Kyng said he received about 60 different retirement village contracts which have formed the base from which his team has developed the model used to drive the online tool.
"We probably haven't covered all the possible variations on how the contracts work, but we believe we have covered about 90% of the cases," Dr Kyng said.
"We have put it out there and are now asking people for feedback.
"If they have a contract that doesn't fit the calculator, we want to know about it so we can adapt the calculator to handle those other features."
Dr Kyng acknowledges the initial RV Calculator release will continue to be developed over time after receiving feedback and with regular updating of the CPI rate as financial conditions change, and adding in the user option of inputting chosen rates.
To share your retirement village contract with Dr Kyng, contact him on firstname.lastname@example.org.
To use the RV Calculator, go to www.rvcalculator.org.