There’s a lot to love about moving to a retirement village, and to retire with confidence, you need financial certainty. At Ryman, we’re transparent about our costs, offering options to fit your ideal retirement lifestyle. No matter which option you choose, you’ll know exactly what you’re paying and what you’ll receive in return.
Below are some explanations of how the fees work and some questions to ask if you are considering buying into a retirement village.
Buying a retirement village unit is not the same as investing in property; instead you are investing in a lifestyle. Most retirement villages will use a right-to-occupy model. The price of your unit (your entry payment) gives you the right to occupy your townhouse or apartment for life, with access to community amenities. The entry payment is a one-off fee, paid before you move in.
A deferred management fee (DMF) is your contribution to the continued maintenance and management of the village, including your unit and village amenities. Often referred to as a departure fee or exit fee, the DMF is an amount that becomes payable when you permanently vacate your unit.
The DMF is calculated as a percentage of the entry price and Ryman's standard DMF is calculated at 30%.
Your entry payment minus the DMF will be paid back to you or your family when a new resident moves into your unit. This means you can be certain this money will be returned to you or your loved ones as soon as possible.
Sometimes retirement village providers will charge additional costs such as a second DMF if you move from independent living to assisted living in a serviced apartment.
At Ryman, no additional capital is required if you transfer from independent living to a standard serviced apartment in the village.
When you permanently leave a village, many village providers will charge additional fees to refurbish your home or to cover the sales process. At Ryman, that’s all covered by the DMF, so there won’t be any additional costs.
In addition to this, when you leave a retirement village, some providers will keep charging you the weekly fee (and continue collecting your DMF) until your home is sold.
At Ryman, the DMF and the weekly fee both stop as soon as you move out.
The weekly fee covers everything from rates and garden maintenance to village amenities, such as a pool and bowling green, as well as a range of village-run activities. It also pays for exterior maintenance on your home, including cleaning your windows inside and out. So, if your gutters back up or a ball goes through your window, you can sit back and let someone else take care of it.
At Ryman, you can choose between fixed or indexed weekly fees which are set at the time of signing your agreement. Indexed weekly fees are linked to the annual increase in superannuation.
Indexed weekly fees are variable and will increase once a year in line with the index they are set to.
If you are comparing weekly fees from different retirement villages, it’s important to know exactly what you are paying and what you’ll receive in return.
The money you pay to move into a retirement village is protected under the terms of the Retirement Villages Act. This means you can have confidence that your money is secure, as your payment is secured against the property. In the unlikely event that a retirement village gets into difficulty, your entitlement to be repaid takes priority over most other creditors.
Explain relevant New Zealand retirement village protections and regulatory requirements in plain English, using current official sources and Ryman-approved legal wording.
Explain why prospective residents should review the ORA and obtain independent legal advice.
Avoid absolute statements such as "your money is completely safe". Instead, explain the protections, contractual arrangements and checks residents should make.
Include a short checklist covering the ORA, fees, repayment provisions, disclosure information and legal advice.
You will need to have independent legal advice before you sign an ORA to move into a unit in a retirement village. The lawyer who witnesses your signature must explain the details and implications of the agreement to ensure you fully understand everything before you sign.
The cost of a retirement village in New Zealand varies by village, location, home type and fee structure, but generally involves an upfront entry payment, ongoing weekly fees and a deferred management fee when residents leave. The exact costs and inclusions will be detailed in an Occupation Right Agreement (ORA).
An Occupation Right Agreement, or ORA, is an agreement that gives a resident the right to occupy a home in a retirement village under specified terms and conditions. It is different from regular property ownership, because residents are paying for the right to live in the unit, but do not own the unit itself.
Retirement village weekly fees generally contribute towards the operation and maintenance of the village, including services, maintenance of the unit, and shared amenities. What is included varies between providers, so check the specific village agreement to understand which services and optional costs are covered.
At Ryman, the weekly fee stops when a resident moves out of their apartment or townhouse. However, not all providers do this, so the applicable Occupation Right Agreement should always be checked for the specific terms and conditions.
Retirement village weekly fees can be fixed or subject to increases, depending on the provider and the terms of the agreement. At Ryman, residents can choose between fixed fees which do not increase, or indexed weekly fees which are linked to the annual increase in New Zealand Superannuation and will never exceed the percentage increase in the rate of NZ super in any given year.
The deferred management fee (DMF) is a resident's contribution to the continued maintenance and management of the village, including their unit and village amenities, and covers the cost of refurbishing and reselling your home when a resident leaves the village. At Ryman, the standard DMF is calculated at 30% of the entry payment.
The amount returned when you leave a retirement village depends on the terms of your Occupation Right Agreement and any agreed-upon deductions, such as the Deferred Management Fee.
At Ryman, the entry payment, less the DMF, will be refunded either when a new resident settles the purchase of the unit, or within 12 months of your leaving – whichever comes first. If a new resident hasn’t settled within six months of your departure, we’ll pay you interest on the balance of your entry payment. You'll earn interest from six months after you leave until your payment is refunded. This will be paid to you when we repay your entry payment.
If you're considering retirement village living and want to find out more about how it all works including the financial side, touring villages in your local area is a good place to start. To find a retirement village near you, check the handy directories below.