The AGE argues that the Fairfax/ABC investigation indicates residents are being harmed, financially and psychologically and calls on government authorities to react.
The AGE points out that ethical management of the retirement village industry is fundamentally important to the wellbeing of millions of citizens.
The ABC's Four Corners program and related reports in Fairfax Media detailed overly complex contracts, misleading marketing, lengthy delays in dealing with health and safety issues and massive fees.
The AGE urges corporate and government authorities to react, arguing there should be an official review of the sector's corporate governance standards.
It also believes that calls by residents and consumer groups for the Australian Competition and Consumer Commission to intervene have great merit.
The investigation reveals retirement village operators collect an exit fee when a resident dies or leaves. This fee is unique to the industry. According to the paper, Aveo, one of the biggest companies in the sector, has 89 retirement villages around the nation, housing more than 13,000 retirees. It makes most of its profit from exit fees, which can be as high as 40 per cent of the property's value.
The AGE says the Fairfax/ABC investigation indicates residents are being harmed, financially and psychologically and that must be stopped.
