What will we do in those twenty plus years, will we be healthy, alone, able to cope financially and where will we live? These are daunting questions.

"Most retirement facilities have 10 to 15 year waiting lists and one certainly stands to gain from planning ahead, investing early and ensuring that you secure a retirement lifestyle of your choosing," says Bruce Swain, RE/MAX Southern Africa Regional Director.

No room at the inn
Indeed, the demand for housing for the senior sector of the population far outweighs supply. Francois Pretorius of REMAX Helderberg cites Somerset West and the surrounds as a particularly popular destination with the elderly. "All the retirement villages in the area are 100 percent occupied," he comments.

In the past, it was the role of the family to take care of the aged but with a growing emphasis on careers and independence; young families are unwilling or unable to accommodate an older relative. In many cases, younger relatives have moved overseas or to another part of the country and a growing number of elderly people wish to remain independent of their families too.

The age of active retirement
For most, 65 is not considered to be terribly old, especially in this age of active retirement. For those lucky enough to have planned well (and invested heavily) in their retirement, there are great opportunities to travel, meet new people and relax in the comfort of an attractive, secure, social environment. Services on offer in retirement villages often include 24-hour medical attention, cooked meals, activities and excursions, laundry facilities as well as leisure and fitness equipment.

However, Neil Fuller of RE/MAX Bedfordview says that "although there is an ever-greater need for retirement homes, developers are reluctant to get involved in these projects as they require long term commitment".

Elderley protected by legislation
This because the elderly are protected by the Housing Development Schemes for Retired Persons Act of 1988. The act states that developers of retirement homes will not see their money until all that they have promised has materialised. This means that most developers will need to stay with the project for some years to see a profit.

Of course, there is still the issue of inflation, which most retirement annuities cannot stand up to, especially when faced with escalating levies. Levies are an integral part of the running of a retirement village. More so when the situation becomes one of assisted living and potentially frail care, which require higher levies.

Only 80 percent paid out on sale
Most retirement homes also operate on a system called Life Rights, which means that on an owner-resident's death, only 80 percent of the value of the home’s purchase price will be refunded to the deceased's estate. The additional 20 percent is employed in the maintenance of the complex and, it is also hoped that this contribution will keep levies from escalating.

Rand Aid is a non-profit organisation which has over 103 years experience in caring for and housing the elderly. Corporate Relations Director Dawn Chernis explains that it does become difficult to keep down running costs without the 20 percent contribution.

Rand Aid is now building another retirement village, in part to generate funds for maintenance costs but also to provide basic assistance for the disadvantaged.

There is an enormous need for basic accommodation in the sheltered income sector, where elderly people can hardly even afford to pay for a roof over their head. We currently have a waiting list of 500 such people. It is overwhelming."

So, perhaps it is time to take a look at this phase of your life, where being retired does not have to mean being old and being old does not mean struggling alone. Research your options and discuss new assisted living and retirement complexes with your local real estate broker. A little planning might just ensure that your golden years are not the rainy day you never put something away for.