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Retirement Villages' Residents' Council spokesperson Carol Shepherd, and independent chair Deborah Hart met with the Retirement Commissioner Jane Wrightson and retirement village specialist at the Retirement Commission Tristan Fluerty. Carol and Deborah were able to have a wide-ranging discussion with Jane and Tristan about the review of retirement villages and the most important issues for village residents.
Media release RVRC submission on review of Retirement Villages Act
Council submits on the review on the Retirement Villages Act
The Council had their first meeting in Wellington on 10 October 2023
In 2023 the Ministry, working in partnership with the retirement sector, will begin a review of the Retirement Villages Act. This review will be part of the Ministry’s wider housing work programme and our commitment to creating thriving communities where everyone has a place to call home. They are working towards the release of a discussion document in September 2023.
On Wednesday, 2 August, the Ministry of Housing and Urban Development released its anticipated discussion paper, The Retirement Villages Act 2003: Options for change. This is the latest step in the regulatory review which was announced in December 2022.
New research shows that 55% of New Zealanders are struggling with their financial situation – up 17% compared to February 2021 and the highest level since surveying began. Out of those surveyed, 51% say they are ‘starting to sink, or treading water’ and a further 3.5% are ‘sinking badly’. Since February 2021, Te Ara Ahunga Ora Retirement Commission has commissioned TRA to survey 4000 people annually, gathering insights on how people are feeling about money and how they are coping. The latest findings have revealed that women, Māori and Pacific Peoples are being hit the hardest, with 61% of women saying they are in a difficult position financially (compared to 48% of men) and 60% of Māori and 58% of Pasifika are also struggling. Sorted Personal Finance Lead Tom Hartmann says it’s concerning so many Kiwi are feeling the pressures of cost increases. “We have now tipped into more than half the population feeling squeezed financially. This significantly reduces people’s ability to grow their money for tomorrow, which has long-term consequences for their future financial wellbeing.” Those people in the survey who are struggling with money have reported experiencing more financial stress as a result. Te Ara Ahunga Ora Research Lead Dr Jo Gamble says financial stress impacts relationships with more women, Māori and Pasifika hiding or concealing their financial situation from their family or friends than the average New Zealander. “Sixty percent of the average population have experienced financial stress within the last year, however this was significantly higher for 18–35-year-olds at 76%, Māori at 76% and 78% of Pasifika,” she says. “Financial stress can ripple across a person’s whole life impacting not only their financial wellbeing but how they relate to the friends and family, and the choices they make socially. “It’s important for New Zealanders to reach out for help if they are struggling, as with support and small changes it can be easier to manage money, which benefits your mental wellbeing.” This research also looked at New Zealander’s financial behaviour in four key areas; budgeting, saving, tackling debt, and KiwiSaver and retirement, which link to Sorted’s key money management pillars. The research showed some positive movements across all groups with people focusing on their money management skills – including keeping a close watch on their money and considering purchases before they buy them. “Developing these skills means New Zealanders may be in a better position to improve their financial position once cost of living pressures ease,” says Hartmann. “When money is tight it can be challenging to keep budgets on track, but developing money management skills can help people keep going during tough times, and then help them get ahead when costs decrease. “As part of Sorted Money Month, we’ve been encouraging people to hit pause, and take a moment to look at their money situation, and seek out help where they need it. This might be using the tools on Sorted, joining a money event or seeking out help from financial mentors or advisers. “Even when times are tough, small changes can make an outsized difference and help you stay on track.”
Retirement Commissioner Jane Wrightson is calling on people to submit their views on the Review of the Retirement Villages Act 2003, following the Government’s release today of a discussion paper detailing options for change. “I am really pleased to see the review progress to this consultation phase. The proposed changes tabled in the discussion document address many of the issues we have raised, along with important others,” she says. “The sector provides important and valued housing options for some older New Zealanders and is by no means broken. I acknowledge recent voluntary changes made by the industry itself. But the Act has not been reviewed in 20 years: it’s important for residents, their families and operators that sector-wide best practice is clearly set out in legislation. I encourage all interested parties to submit their feedback on the proposals put forward.” The discussion paper is calling for feedback on a raft of proposals relating to the three phases of retirement living: moving in, living in and moving out. This spans everything from plain language disclosure statements, partially standardised occupation right agreements, replacing the current complaints and disputes scheme, right through to introducing mandatory timeframes for repayment of capital sums after units have been vacated. Submissions can be made to Te Tūāpapa Kura Kainga – Ministry of Housing and Urban Development , which is leading the review work. The options paper comes on the heels of the Retirement Commission’s latest investigation into residents’ experiences in moving out of, or within, a retirement village. Research found that the experience can be quite varied, with some residents feeling informed and supported, while others feeling rushed and taken advantage of. A lack of understanding of how the buying and selling of retirement village accommodation differs from the wider residential real estate market can lead to disappointment and dissatisfaction among both residents and whānau. Many residents and whānau expect a duty of care from a retirement village to be also applied throughout the exit process, and their interpretation and expectation of this duty of care greatly affected their exit experience. Te Ara Ahunga Ora Retirement Commission proposed a review of retirement village legislation in December 2020 and released a white paper setting out issues around the retirement villages framework. The need was confirmed in June 2021 after public consultation on the white paper, in which 3,300 submissions were received. The Commission provided a summary and recommendations report to Government. The Retirement Commissioner has statutory obligations under the Act to monitor the framework’s effectiveness. In the Commission white paper, Wrightson said the legislation was at risk of becoming outdated and unfit for purpose. Key concerns were raised about the resale process, weekly fees charged after a resident vacates a unit, flaws in an overly complicated complaints system, confusing documentation and the tricky interface between village and care facilities. “Retirement villages remain an attractive choice for some older New Zealanders, providing a sense of community and a quality option for those who wish to downsize,” says the Retirement Commissioner. “This review is an opportunity to assess what updates to the legislation are needed, for both residents and retirement village operators.”
The Retirement Villages' Residents' Council is an independent body representing the collective interests of retirement village residents in Aotearoa, New Zealand.