Retirement villages

Retirement villages are governed by the Retirement Villages Act 2003. The Act strengthens consumer protection for residents and intending residents, providing a regime to control and monitor retirement village operators. Any facility operating as a retirement village must be registered on the Retirement Villages Register.

Retirement Villages

A retirement village contains two or more residential units to provide residential accommodation with services and/or facilities. Retirement villages are mostly inhabited by people who are retired and their spouses.

What a retirement village is 

Residents typically agree to pay a capital sum for the right to live in a unit in a registered retirement village. The agreement can take several forms, such as a license to occupy, freehold, leasehold, cross-lease or unit title.

(A capital sum can also mean periodical payments, if the sum is substantially more than would be paid to cover rent for similar services or facilities.)

Intending residents must seek independent legal advice, and are strongly encouraged to seek financial advice to ensure they fully understand the type of retirement village obligations that they're entering into.

Te Ara Ahunga Ora Retirement Commission aims to help New Zealanders to retire with confidence and provides information for residents and intending residents.

Published: May 18, 2020