A factor affecting retirement worldwide is longevity. Globally, the average life expectancy has, since 2005, increased by 5 years and the mature, over 60 group has been the fastest growing population group over the past decade. Retirement savings and funding is now often not sufficient to cover the costs of keeping retirees in the standard of living they are accustomed to, resulting in the necessity of downscaling as much on finances as on house size.
In South Africa, roughly 8% of the population are over 65, and we are facing a major retirement crisis with an estimated 94% of pensioners unable to maintain their standard of living in retirement. According to the World Health Organisation, the proportion of South Africa’s population aged over 60 will almost double to 15.4% of the country’s total population by 2050.
By comparison, the UK over 65s’ make up 17% of the population and are projected to make up 23% by 2025. By 2040, 1 in 7 people are expected to be over 75 years old.
Investors see South Africa as a land of retirement opportunity – our wonderful climate, excellent private healthcare providers and an increasing number of new retirement estates being built to meet demand, are a great drawcard. Retirement planning however requires careful financial planning and choices.
Retiring to an Estate in the Cape or at the coast has always been the trend, but with younger mature lifestyle estates on the increase countrywide, the whole balance has changed and retirement development schemes have increased in Gauteng, enabling retirees to stay close to their families and familiar surrounds.
A shortage of accommodation for the elderly means that people may not have a range of options to select from. Waiting lists for retirement homes can be long – up to 5-10 years before someone finds a place.
Providers of accommodation include: the State, non-profit community organisations and property developers. The types of accommodation then differ based on income levels, location, facilities provided etc. Entry costs can range from R500 000 to R5 million and buyers / residents will usually also pay a monthly levy – covering a range of costs associated with living in the village.
Developers of mature lifestyle estates often find it difficult to get the numbers right whilst meeting the needs, financial position and expectations of retirees. While for most retirees, their choice of retirement home is the dictated by location, comfort and amenities – many still want their asset to appreciate over time. Many non-retired investors are now also considering the value contained in sectional title retirement developments as they will experience great capital appreciation and rental returns. Rental rates of 8-10% of purchaser price make for a strong annuity income once the unit is paid off.
Life rights schemes often have 10-year + waiting list and units cannot be inherited – often the deceased’s’ estate may have to continue paying levies until such time as the unit is resold or re-let. Sectional title developments are thus becoming increasingly popular with all generations with respect to facilities and amenities such as security and WIFI as well as investment potential. These types of Estates then also allow for purchasers of any age to buy a unit, though residents or tenants have to be over the age of 50. They are also then entitled to inherit the units and gain from capital growth (and rental income).
Retirement at Heritage Estate
The primary consideration in buying into a retirement village should be to make provision for the fact that a persons’ health and mobility will naturally deteriorate at some stage – no matter how young and healthy they feel now. Many people in their 60s’ and 70s’ can also attest to the fact that life “accidents” such as heart attacks, strokes and even a bad fall can undo even the best-laid plans for an active retirement.
It is therefore wise to choose a retirement village or Estate that enables and encourages residents to stay independent as long as they are able to, but also offer several levels of stepped-up healthcare as they need them.
Assisted living is now preferable to frail care facilities as residents with health care issues wish to age-in-place with in-house or full-time nursing care in their own house. Generally, health care is the most expensive component of any Retirement Estate or village and thus provision should rather be made of offering health care in all and any unit in such developments, that will then make the scheme financially viable and stable.
The Oaks – Phase 1
The Oaks – Phase 2 Block 7 and 8
Heritage Estate offers the over 50s an elegant retirement option in a Lifestyle Estate with a magnificent Heritage House, which was built in 1910 and is currently being refurbished and renovated to house a library, card/hobby room, dining hall and business centre, gentlemen’s bar and nursing station. The Pavilion – built in 1925, will hold the coffee shop and lead onto The Oval gardens.
The Estate, as a sectional title development, allows purchasers to own their own units or sections within the Estate that, when complete will comprise 26 simplex units, 2 heritage cottages and 96 apartments (2 penthouse units). Lift access will be provided in some of the Blocks. As per any sectional title Estate, residents form a Body Corporate to control and govern the scheme and appoint a managing agent to take care of the facilities, collection of levies, maintenance and estate management. The sectional title general levy and compulsory medical/ healthcare levy, covering primary health care (offered on site by TruCare Age Well Solutions), are payable to the Body Corporate -Homeowners Association.
All residents have access to panic buttons for any medical or security emergency, and to primary health care services offered by the on-site nurse and observation room. The compulsory medical levy, charged by the health care provider – TruCare Age Well Solutions, covers the primary and emergency healthcare needs with optional cleaning, laundry, 24-hour home care and frail care services on a pay-as-you-need basis.
The compulsory medical levy charged may however exclude some services, ie: meals, 24hr-nursing, cleaning and laundry services that are then offered on a fee-for-service basis by TruCare Age Well Solutions, the healthcare provider at Heritage Estate.
Busmamed Hospital is also in close proximity to Heritage Estate for any medical emergencies. 
Heritage House
