Retirement village repayment period to shrink under new plan
A leaked government document indicates that New Zealand retirement village operators may soon be required to repay residents within nine months of departure. This policy shift, which includes an early 10 percent repayment clause, follows pressure to improve protections for elderly residents.
Why it matters
The proposed legislation addresses long-standing concerns regarding the financial treatment of seniors in the retirement village sector.
A leaked document shows the Government would require retirement villages to repay residents within nine months, and 10 percent of the owed amount within four weeks.
That 10 percent early repayment would replace the interest gains for residents who had not been repaid, which the government had previously announced.
With the legislation not set to be passed until after the election, it's as good as a National Party policy - although the changes also come as a result of a review of the Retirement Villages Act secured as a commitment in the National-NZ First coalition agreement.
Currently operators must repay residents, or their families, within 12 months of them leaving the village.
Some have complained that is too long to wait.
The document obtained by RNZ - which looks to be a press release - quotes Associate Housing Minister Tama Potaka saying the Government had listened.
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