Tips on choosing a retirement village

1.  Make a list of things you want in an ideal village.

This could include activities and amenities such as:

• organised activities/trips
• community hall
• swimming pool
• library
• hairdresser
• health services
• restaurants.

Different types of villages offer different levels of services and facilities. Some very small villages may only provide housing and access to a community hall, while others may have health and leisure facilities, restaurants, sports facilities and rest home or in-house care.

Also consider how long you think you will live in a retirement village. If you are looking at more than 5 years then you should think about your future needs.

2.  Visit different villages and find out what they offer. 

Some villages are run by commercial companies; others are run by religious, welfare and charitable organisations.  The Retirement Villages Act 2003 requires all operators to register their village. It also defines villages according to size:

• small – has no more than 34 residential units
• medium-sized – has at least 35 but no more than 84 residential units
• large – has at least 85 residential units 

The size of the village does not reflect the type of operator, but larger villages may offer more services and facilities. 

Some villages, especially in rural areas, are spread over a number of sites with small clusters of housing but a central venue for events. If you are looking at this type of village, you may need to enquire about transport options and whether operators provide bus services.

3.  Talk to existing residents.

Many retirement villages hold ‘open days’ where you can view the types of accommodation on offer, view the property, and talk with existing residents. Ask them what they like or dislike about the village. Enquire about the social issues and lifestyle in the village, and related emotional issues such as how long it took others to settle in. The more questions you ask, the more knowledge you get, giving you a greater chance of making a choice that is right for you.

4.  Think about your future needs.

Many villages have rest homes and hospitals onsite. The village manager will be able to tell if you are able to move into the rest home or hospital at a later stage. Other villages may offer health and home help services in your residential unit. Some of this information will be contained in the disclosure statement.

Find out how accessible the residential units and community facilities are. The Act does allow residents with mobility and disability needs to modify their residential unit. Check with the village manager and your contract to be sure of who pays for these changes, and whether you have to return the unit to its original fittings when you move out.

5.  Read all of the information you are given.

When making enquiries you must receive a copy of the following:

• disclosure statement
• occupation right agreement
• Code of Residents Rights.

You can also ask for copies of the:

• Code of Practice
• deed of supervision
• last audited accounts
• financial forecast.

There is plenty of information available, but they are for your knowledge and peace of mind. 

The statutory Code of Practice comes into force on 2 October 2009. Retirement villages that are members of the Retirement Villages Association have a voluntary code of practice which is already in place.

Most retirement villages will have a statutory supervisor to oversee the running of the village. This is a requirement of the Act, and if your chosen village has a supervisor you will receive a copy of their deed of supervision. 

Some villages are exempt from appointing a statutory supervisor. If this is the case, the village should state this and you can ask to see a copy of the exemption certificate.

6.  Find out about the costs.

There are costs to living in a retirement village. There is often a payment before moving in, sometimes referred to as joining fee. There are ongoing fees for services and facilities. You should check whether the fees include gas, electricity and telephone bills. 

Most villages charge weekly but bill monthly. Many villages offer direct debit facilities so residents can pay for these charges automatically. Some villages also provide loan facilities. You can ask the village manager or statutory supervisor, as well as an independent financial adviser, about this.

There may also be costs when you leave the village. Different villages have different ways of calculating fees; not all charge. The end-of-contract fees are described in the disclosure statement, but you could always ask.

When you compare costs, remember to compare like with like to ensure that you are making best use of the information available.

7.  Get financial advice.

The Act does not require intending residents to take independent financial advice, but you may find it useful to:

• check that you can afford the ongoing fees
• find out how much you need to set aside if you leave the village
• consider whether you want to leave a legacy and if this is affordable.

You can also enquire if you are eligible for benefits. Some residents of retirement villages are eligible for accommodation supplement through Work and Income New Zealand, and a rates rebate from the local authority.

8.  Get independent legal advice.

The Act requires all intending residents to seek legal advice before signing a contract with a retirement village. Your lawyer is required to certify that you fully understand the terms and conditions of the contract.   

If possible, have a friend or relative accompany you when you get legal advice. This way they will hear exactly what you are told and they have the opportunity to ask questions on your behalf.

9.  Get everything in writing.       

Some operators are willing to negotiate on specific clauses in the contract. Make sure any changes are recorded in writing and signed by both you and the operator. This will allow everyone with an interest in your welfare and well-being to see what you agreed to. It is also in operator’s interests to ensure that both parties fully understand what they have agreed to.  Ask and make sure it is written down.

10.  Talk to your family and friends.

Talk to your family and friends about your decision. Make sure your children understand the contract you are signing. This is very important if they have Enduring Powers of Attorney or are given an EPA in the future, or are the executors of your will. Talking with your loved ones about your move to a retirement village will help allay unnecessary concerns.