What You Need to Know About Exit Fees in Retirement Villages
Rachel Lane on ABC Radio
When it comes to moving into a retirement village, one of the most confusing (and most talked-about) elements is the Exit Fee, also known as the Deferred Management Fee (DMF). But what is it exactly — and how does it affect your finances?
In this recent ABC Radio interview, Rachel Lane shares insights to help you better understand exit fees and avoid common misconceptions.
🎧 Listen to the interview below – or read on for the key takeaways.
What is an exit fee?
An exit fee is a cost you pay when you leave a retirement village. It’s typically a percentage of your entry price and is how many villages fund capital replacement and long-term maintenance.
Why the confusion?
People often focus on the percentage — 30%, 35%, 40% — without understanding how it’s calculated or what it includes. Rachel points out that it’s better to ask:
👉 What do I get to keep?
Because the real impact on your finances is in how much equity you retain.
A useful analogy
Think of it like buying a car. You don’t just ask, “How much does it cost?” — you consider running costs, resale value, and what’s included.
The same applies when comparing village contracts. Two villages may charge 30%, but how they apply that fee could be very different.
Get help comparing options
Rachel recommends using tools like the Village Guru Report to make an informed decision. It compares different villages side by side — factoring in exit fees, ongoing costs, pension implications, and more.
