How to future-proof your retirement village choice

Moving into a retirement village is a big decision, and it’s important to be clear about your circumstances and lifestyle preferences – both now and in the future.

Will a retirement village be the right fit for you in the long run?

“We thoroughly investigated our needs for now and going forward. The ideal spot for us was here because everything is so close. We thought about what happens if we lose our licence and we have to walk or get the bus. Well, buses outside the door, supermarket’s across the road. Little things like that, people should take into consideration. We’ve got a hospital down the road.”

“Countdown’s there, the motorway’s so close, my children are so close.”

First, think about what’s most important to you right now. Maybe you love the idea of a rural location with a warm climate for lots of outdoor activities. Then visualise how this might change for you. Remember, once you move into a retirement village, leaving can be expensive so it’s vital to future-proof your decision by considering both your current and future needs. Right now, you might be happy driving long distances to visit family and friends, but think ahead. In the future, you might not have a driver’s licence, or your health might change. Suddenly, having a rest home on site and being close to family could become very important.

“We don’t like the idea of going into a rest home.”

It’s not easy to think about, but it’s essential. Many people don’t consider aged care. Some residents simply plan to stay in their units until they pass away. This can be risky because we can’t always control what happens with our health. Not all retirement villages will have a rest home on site, so it’s a good idea to think about your options for accessing care if you might need it in the future. Consider if there’s a rest home near the village, so you or your partner will not have to travel far to visit. You’ll also need to make sure you have sufficient savings once you vacate the village to pay for a rest home, given that the operator of the village will have retained 20-30% of the capital you have paid in.

“I sort of looked towards the future because all the care facilities are there and I know that you know if I need something, well, that is my next option if I can’t manage on my own. I did consider all the options that were available – dementia, full-time care, hospital care. Yes, and I think I made the right decision.”

Visit different villages to see what they offer. Talk to the residents and the residents’ committee. No need to rush your decision, and it helps to involve your family or friends in the process.

“We had so many friends in other retirement villages that they were our guiding line. We felt retirement living with our friends who are in that situation gave us advice of what to look for. We shopped around looking for retirement villages for five years. We went right down south, and it was our family that actually said, no, you’re not moving out that far. You need to stay closer.”

Remember, a retirement village should ideally be your last move because it’s costly to leave. Instead of a village, you could also consider options like downsizing, moving in with family, or staying put and funding your lifestyle through a reverse mortgage.

Five tips for assessing whether a village is the right fit for you:

1. Research thoroughly

Visit multiple villages, compare their amenities and talk to current residents.

2. Consider your future health needs

Check what levels of care the village offers, such as hospital and dementia care.

3. Evaluate accessibility

Think about the location’s proximity to family, friends and essential services.

4. Involve your loved ones

Discuss your options with family and friends to get their input and support.

5. Explore alternatives

Look into other options, like downsizing, living with family or using financial products like reverse mortgages.

Take the time to think carefully about your circumstances and preferences. It’s a big decision, but with thoughtful planning, you can choose the best option for your future.

For more information, see Sorted’s guide on retirement villages at sorted.org.nz.