If you've thought that a nursing home and a retirement home were the same thing, you're not alone. It's a common misconception as they're both concerned with accommodating the elderly.

What's the difference between a nursing and a retirement home?

• A nursing home cares for residents who need medical care. A retirement home has residents that can live independently.
• In a nursing home the elderly need daily assistance while a retirement home offers a range of health, leisure and support services.
• Acceptance into a residential aged care facility is restricted by medical need while a retirement village is usually occupied by residents who choose to live there by choice.
• Accommodation and services in a nursing home are subsidised and regulated while residents fully fund their retirement homes.

While they may look similar, they are designed for different stages of an elderly person’s life and to cater for their different needs. Here are the differences:

Nursing home

• Nursing homes care for residents that require daily assistance with personal care, medication and the like.
• The elderly need daily personal assistance and cannot live alone.
• In a nursing home, the elderly live in “apartment” style homes so that nurses and care givers have access to them.
• Nursing homes offer residents laundry and cleaning services, assistance with personal care, meals, and medication.
• Entry into a residential aged care facility is determined by medical need.
• In order to move into a facility, the elderly person must be medically assessed and judged as requiring personal assistance.
• Nursing homes offer care for persons with terminal conditions, specialised nursing such as ventilation, oxygen therapy; as well as pain management in conjunction with your oncologists or physicians, to name but a few.
• Nursing homes are designed for seniors, so include accessibility features such as gentle slopes (no stairs), grab rails in the bathroom, and emergency call buttons.

Retirement home/village

• Retirement home residents can generally live independently and are not very frail or dependent on staff.
• Retirement homes are residential, multi-unit complexes designed for people aged 55 years or older that also offer a range of health, leisure and support services.
• The majority of villages are “campus” style with single-level or low-rise villas occupying spacious landscaped grounds.
• Retirement homes may include recreational and medical facilities, such as community halls, bowling greens, and rooms for visiting doctors or allied health professionals.
• Entry into a retirement home is usually determined by age.
• The elderly moving into a retirement village or home do so by choice as they can afford to move in.
• Some retirement village residents have additional assistance through paid help or community care packages, but they do not need daily help with dressing, bathing or cooking.
• Residents fully fund their retirement homes.
• Retirement homes and villages are designed for seniors, so include accessibility features such as gentle slopes (no stairs), grab rails in the bathroom, and emergency call buttons.

When you're young retirement and nursing homes seem miles away. Saving for your retirement is a really important financial goal and one that should be started early. Take a look at some of our retirement solutions here or speak to a friendly financial adviser for assistance. You can even check if your current retirement savings are on track with our retirement savings calculator and earn some great rewards at the same time.