The financial implications of moving into a retirement village will be explored at a free public seminar in Christchurch on 5 August.
Many people do not fully understand the financial consequences when they sign a retirement village contract to buy a ‘license to occupy’ a unit, says the Retirement Villages Lead at the Commission for Financial Capability (CFFC), Troy Churton. For example, when a resident passes away or needs to move to more intensive rest home care, the retirement village company may not pay out the unit’s capital to the family until the unit is relicensed, which can take months in some areas. The company may also demand that weekly fees continue to be paid during that time.
“Another example is that additional costs may apply when a married couple buys into an independent-living unit, but the husband or wife later needs to move into a care facility,” says Churton.
There are 63 retirement villages in Canterbury, each containing 60-100 units. Those numbers are expected to increase to cater for the 75+ population, projected to grow by 140% over the next 25 years. More than 3000 new units are due to be built in the region over the next few years.
Churton is running the free seminar on behalf of the CFFC, an independent government agency that monitors the retirement village industry. “The CFFC aims to ensure New Zealanders are fully informed objectively of the implications of moving into a retirement village before they do so, and have time to obtain legal advice and discuss their decision with family,” says Churton.
Retirement village information seminar, Wednesday, 5 August, 10-11.30am, Cashmere Club, 50 Colombo St, Christchurch. Free. To book a place register at