When it comes to planning as we age, understanding the different types of accommodation options in Australia is essential. Many of us feel confused by terms like “retirement living”, “assisted living” and “residential aged care”, especially when we are trying to match care and lifestyle needs with what we can afford.
This article explains the difference between retirement living, assisted living and residential aged care in Australia, including care levels, costs and who each option tends to suit.
Retirement Living: Independent Lifestyle and Community Focus
Retirement living, often called a retirement village, is designed for independent older adults, usually aged 55 and over, who can manage their own day-to-day living but want the benefits of a supportive community.
Financial arrangements
Most retirement villages require an entry contribution. This might be set up as a purchase, leasehold or licence arrangement. In addition, residents pay ongoing service fees that contribute to:
- Maintenance of the village
- Use of community facilities
- Shared services, such as gardening or common area cleaning
Some villages also offer optional services that may attract extra fees.
Level of care and support
Retirement living does not include aged care services as part of the standard model. Residents are responsible for organising any support they need, such as:
- Private cleaning or meal delivery
- Home care services, funded privately or through My Aged Care
- Community nursing or allied health visits
Some villages have preferred providers or on-site clinics, but it is still considered independent living, not formal aged care.
Retirement living can work well if you are mostly independent, want community, and are comfortable arranging your own supports as needs change.
Assisted Living: Extra Support with Daily Tasks
Assisted living, sometimes described as serviced apartments or supported living, sits between independent retirement living and residential aged care. It suits people who need regular help with day-to-day tasks but do not yet require 24 hour clinical care.
Financial arrangements
Assisted living is usually paid for privately. Costs are often charged weekly or monthly and may bundle together:
- Accommodation
- Meals
- Housekeeping and laundry
- Some level of personal support
There is usually no government subsidy attached specifically to the assisted living fee, although you may still access government-funded home support separately if you are eligible.
Level of care and support
Support in assisted living often includes:
- Meals provided in a dining room or delivered to the apartment
- Help with showering, dressing or other personal care
- Medication reminders
- Regular check-ins and an emergency call system
Assisted living does not provide nursing care as a core part of the service. If your needs progress to regular nursing or high-level dementia support, residential aged care or a higher level of home care may be more suitable.
Families often look at assisted living when home care is no longer quite enough, but residential aged care feels like too big a step.
Residential Aged Care: 24 Hour Care and Clinical Support
Residential aged care, sometimes called a nursing home or aged care home, is for older people who can no longer live safely and well at home, even with support. This may be due to:
- Complex medical needs
- Significant physical decline or high falls risk
- Advanced dementia or behaviours that are hard to manage at home
Financial arrangements
Residential aged care is partly funded by the Australian Government. Residents contribute to the cost of care and accommodation based on their income and assets. Fees may include:
- A Refundable Accommodation Deposit (RAD) or Daily Accommodation Payment (DAP)
- A Basic Daily Fee
- An income and asset tested contribution toward care fees
You can use the My Aged Care fee estimator to get an indication of what may apply in your situation, and detailed advice is often helpful for larger financial decisions.
Level of care and support
Residential aged care homes provide:
- 24 hour care, including nursing and personal care
- Medication management and clinical oversight
- Access to allied health such as physiotherapy
- Dementia support and behaviour management
- All meals, cleaning and laundry
- Lifestyle and social activities
Staff are trained to support residents with higher care needs, including complex physical and cognitive conditions.
Which Option is Right for You or a Loved One?
There is no single “right” pathway. The best option depends on:
- Current and likely future care needs
- Budget and eligibility for government subsidies
- Preferred location and style of living
- Availability of services in your area
- How much informal care family and friends can realistically provide
Some people move directly from home into residential aged care. Others start in retirement living or with home care, then move into assisted living or residential care as needs increase.
What matters most is choosing a setting that is safe, sustainable and aligned with your values and finances, rather than reacting in a crisis.
How Aged Care Conversations Can Help
Sorting out the differences between retirement living, assisted living and residential aged care can feel overwhelming, especially when you are also worried about an older person’s health and day-to-day safety.
At Aged Care Conversations, we can help you to:
- Clarify what each option does and does not provide
- Compare likely costs and funding options in plain language
- Understand how My Aged Care, home support and residential care fit together
- Plan for next steps now, while keeping an eye on what might be needed later
You can choose the style of support that fits you best:
Curated accommodation and care resources Clear guides that explain retirement living, assisted living and residential aged care, with checklists and comparison tools to help you think through care needs, lifestyle and costs. 
Aged Care School sessions Small-group sessions that walk through housing and care options for older people, what to consider, and how to plan for change, with time for questions and a practical takeaway summary. 
Individual consultations One-on-one conversations where we look at your specific situation, discuss options in your local area and map out a realistic plan for the next 6 to 12 months.
If you would like help working out which option may be the best fit for you or someone you care about, we would be happy to talk.
Contact us at chat@agedcareconversations.com.au or visit www.agedcareconversations.com.au to explore our resources, Aged Care School sessions and 1:1 support.