Retirement Villages

PHOTO: Photo: 123RF

A consumer watchdog is calling for an overhaul of retirement village regulations to protect elderly residents from being ripped off.

Consumer NZ has reviewed the contracts offered by six major companies including Bupa, Ryman Healthcare and Summerset.

Chief executive Jon Duffy said retirement villages promised the good life in your golden years, but the review showed the agreements people must sign unfairly favoured the village.

Duffy said a major concern were contract terms that made residents responsible for the costs of electrical or plumbing repairs even though they had no ownership rights to their unit.

Many also faced significant financial losses when their unit was sold because they did not get any capital gains, despite paying towards the property’s upkeep.

Consumer NZ head of research Jessica Wilson told Morning Report how payment for a place in a village worked.

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