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Retirement village living in New Zealand: the facts

There has been a lot of talk about retirement village living recently so we asked John Collyns, executive director of the Retirement Villages Association, to separate the facts from fiction.

Approximately 50,000 older New Zealanders now choose to live in retirement villages and this number is growing by more than 100 people a week.

“The popularity of retirement village is unsurprising,” says John.

“Retirement villages offer older New Zealanders a range of affordable accommodation options, independent living, a continuum of care and community facilities, backed up with world-leading comprehensive consumer protection.

“The Retirement Villages Act, regulations and Code of Practice provide a comprehensive and effective resident-focused consumer protection framework and is the envy of the world. Generally, the system works well. It has allowed the sector to develop a variety of options for residents and the focus is on encouraging genuine choice.”

The Retirement Commissioner recently noted there are high satisfaction levels among village residents, says John.

“With independent research showing over 95% satisfaction with village living, the sector is continuing to meet the expectations of the vast majority of residents and strike the right balance between robust regulatory oversight and effective self-governance. But we’re determined to do even better.

“One of the exciting initiatives is the roll-out of a comprehensive blueprint to usher in a range of improvements.

“This includes providing residents with a stronger voice, strengthening the complaints process, exploring the establishment of an Ombudsman to hear and resolve issues, fix potentially unfair clauses and work with the Commission for Financial Capability to develop best practice standards for re-licensing times.

“For example, the sector is actively encouraging operators to stop charging all fees when a resident moves out and it is now a minority of villages where this is still occurring.

“We’re also addressing any perceived unfair terms or confusing clauses and ensuring clarity around what the resident and operator are responsible for, in particular, repairs, maintenance and replacement of operator-owned chattels.”

John says the sector also wants to work with members, residents and the Retirement Commissioner to design a best practice approach to re-licensing that reflects the reality of the local real estate market, yet ensures residents’ estates do not have to wait an unreasonable period of time for a refund.

“Retirement village living provides a no-hassle lifestyle with no need to maintain and upkeep homes, pay rates, insurance and water levies,” says John.

“Residents often tell me how much they value the security, companionship and sense of community at their village. It is little wonder retirement village living is a popular option for many Kiwis.”