Rotorua seminar to explain costs of moving into a retirement village

Troy Churton, the retirement villages lead at the Commission for Financial Capability. Photo / File

The financial implications of moving into a retirement village will be explored at a free public seminar in Rotorua this month.

Many people do not fully understand the financial consequences when they sign a retirement village contract to buy a license to occupy a unit, Troy Churton, the retirement villages lead at the Commission for Financial Capability, said in a media release.

He said when residents died or needed to move to more intensive rest home care, retirement village companies might not pay out capital until a family's units were relicensed.

Troy Churton, the retirement villages lead at the Commission for Financial Capability. Photo / Supplied

This can take months in some areas and companies can also demand 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," Churton said.

There are seven retirement villages in Rotorua, and one each in Kawerau and Putāruru each containing 60-100 units.

Those numbers are expected to increase to cater for the 75-plus population, projected to grow by 109 per cent in the Bay of Plenty over the next 25 years.

More than 2000 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 commission, an independent government agency that monitors the retirement village industry.

"The CFFC [Commission for Financial Capability] 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," Churton said.

The free seminar will be from 10am to 11.30am on August 26 at Te Puia.

Register at eventfinda.co.nz.