Buying a home in a retirement village is one solution to a long, comfortable old age. But will it be enough?

Before the decade is out, it is anticipated that globally there will be over a billion people over the age of 60.

Nearly a quarter of Japan’s population is aged over 65 with a staggering 51,000 Japanese seniors aged over 100 years.  And Australia may not be that far behind.

With the current rate of health care, the average 50 year old woman has a 52% chance of living until she’s 95. Men don’t fare quite so well, but 38% of today’s 50 year olds are still likely to reach the same age. Leaps in aged care in coming decades will doubtless improve these figures, leading directly to a country with more seniors and centenarians than ever before.

Which raises the obvious question, whose going to pay? And more importantly, will you have enough money to live comfortably into old age?

Selling the family home to move into a retirement village is one solution, one that should also leave a little cash for rainy days. McCrindle Baynes research for villages.com.au found that 80% of people sold their home for less than $500,000, and it cost less than $400,000 to buy into a retirement village.

That left a little spending money for comfortable retirement, but will it be enough money to last 20, 30 maybe 40 years?

In Japan, robot technology is being developed to help its ageing population. It is unlikely that Australians will be lucky enough to benefit from such techno-help in the short term. It’s a costly process and cash-strapped governments can barely cope with today’s aged care demands at current levels of funding.

This puts the onus back on us to look after ourselves in retirement, a retirement that will last longer than ever before.  Are you prepared for that?