With the Hibiscus Coast being a popular destination for retirees and home to numerous retirement villages, locals may take special interest in the Government’s ongoing review of the Retirement Villages Act 2003.

This review, which follows feedback from over 11,000 public submissions last year, aims to address pressing issues within the retirement village sector.

Associate Minister of Housing Tama Potaka, alongside Seniors Minister Casey Costello, confirmed the progress, saying the review will concentrate on essential areas identified by the public.

“It’s clear based on the over 11,000 public submissions received in 2023 during consultation that there are some areas with high levels of agreement,” Mr. Potaka said.

Among the top priorities for the review are bringing the Act up-to-date with best practices within the retirement sector, increasing transparency, and enhancing protections for residents.

Specific changes under consideration include a plain-language version of the Code of Practice and potential restrictions on passing insurance excesses to residents when they are not at fault.

Further, Mr. Potaka outlined three key areas the review will prioritise: “Maintenance and repairs of operator-owned chattels and fixtures, managing complaints and disputes, and options for incentivising or requiring earlier capital repayments when residents move out of a village.”

Associate Minister of Housing Tama Potaka

The overarching goal remains to ensure consumer protection while balancing the rights and responsibilities of both residents and operators, he added.

This approach aims to address concerns from residents and their families while preserving the sector’s viability.

Seniors Minister Casey Costello emphasised the importance of retirement villages in New Zealand’s housing landscape, particularly as the population ages.

“New Zealand’s population is ageing and it’s essential we have a range of housing options available for older people,” she said.

“Retirement villages play an important role in this mix, and around two-thirds of them also provide aged care facilities.”

Currently, about 53,000 people live in retirement villages across New Zealand, and that number is expected to double to around 113,000 by 2048, according to industry estimates.

This anticipated growth highlights the urgency of the review, as demand for retirement accommodation will likely increase in the coming decades.

Next year, Mr. Potaka expects to receive further briefings and discuss the possible changes before presenting them to Cabinet.

A legislative amendment could be introduced as early as 2026, with the goal of enacting changes in the next Parliamentary term.