Govt Unveils Major Reforms to Protect Retirement Village Residents and Families

“New Zealanders deserve clarity, fairness, and straight-up information when they move into a retirement village,” Mr Potaka said.

The Government has announced a significant set of reforms to strengthen protections for New Zealanders living in retirement villages. Associate Housing Minister Tama Potaka says the changes are designed to give residents and their families greater clarity, certainty, and confidence when entering or leaving a village.

"New Zealanders deserve clarity, fairness, and straight-up information when they move into a retirement village," Mr Potaka said. "For too long, residents have faced uncertainty, especially when moving out and waiting for their money to be repaid. We're fixing that."

The reforms form part of commitments in the National–New Zealand First Coalition Agreement, and progress on reviewing the Retirement Villages Act is seen as a key step toward "fixing the basics and building the future," Potaka said.

Addressing Long-Standing Concerns in a Growing Sector

Seniors Minister Casey Costello emphasised that while most retirement village residents are satisfied with their lifestyle, fairness and certainty need to be strengthened to protect those who are vulnerable.

"The changes we are making will address concerns around fairness and provide certainty to residents and their families," Ms Costello said. "At the same time, the changes recognise the important role retirement villages play in providing housing for older New Zealanders, with nearly two-thirds offering aged care services."

Retirement villages house tens of thousands of older New Zealanders, and the sector has grown rapidly as the population ages. Many residents and families have called for better protections around contracts, fees, and the return of funds after a resident vacates their unit.

Clearer Contracts, Greater Transparency, Better Dispute Resolution

The new reforms will make legal documents easier to understand and require retirement village operators to clearly set out what services and amenities they provide. The changes also provide clearer responsibilities relating to chattels owned by operators, ensuring transparency about maintenance obligations.

A new independent disputes resolution scheme will give residents an accessible, fair, and simple way to resolve issues—reducing reliance on costly legal processes or complex internal procedures.

Reducing Stress During Transitions and End-of-Tenancy Periods

A major focus of the reforms is reducing the stress families face when a loved one leaves a village, whether due to relocation, health needs, or passing away.

"Family deserve certainty during what is often a challenging time," Minister Potaka said. "These steps deliver that certainty and strengthen the rights of residents, while supporting the sector to grow and innovate for the future."

Key Improvements in the Reforms

The Government's changes include:

• A process allowing former residents to apply for early access to funds in cases of specific need

• Interest applied after six months if a unit remains unlicensed

• Mandatory repayment of a resident's funds within 12 months of the unit being vacated

• Immediate stopping of weekly fees and deductions once the resident leaves

These measures aim to end long waits for refunds, ensure fair costs, and remove financial pressure from grieving families.

Informed by Strong Public Input

More than 11,000 New Zealanders contributed to the review through surveys, submissions, and community engagement. Their experiences and expectations directly shaped the reforms.

"The Government thanks residents' representatives, operators, and the Retirement Commissioner for their sustained advocacy and constructive engagement," Potaka said. "These are practical, balanced reforms that reflect the feedback of residents and operators."

Next Steps: Legislation in 2025

A Bill reflecting the reforms is expected to be introduced to Parliament mid-next year. The Select Committee process will provide further opportunity for residents, families, operators, and advocacy groups to share their views and help refine the legislation.