26th April 2026
Consumer NZ is calling for urgent law reform to ensure retirement village residents receive their money back sooner after leaving, launching a petition that proposes a strict three-month repayment deadline.
The consumer advocacy group says the current system is leaving some former residents and their families under severe financial strain, with no legal requirement for how quickly repayments must be made once an occupation right agreement ends.
Chief executive Jon Duffy says the issue is both widespread and unfair. “Residents pay big money to live in a village. When they leave, they get their money back minus a management fee of up to 30%.
“But the village isn’t usually under any obligation to repay that money until the unit is relicensed so people can be left waiting years,” says Duffy.
“Retirement village residents or their families can be left in financial dire straits when they have to wait too long to get their own money back – it’s not fair, and it needs to be fixed.”
Consumer NZ shared the experience of one former resident, Barbara, who left her village following a serious cancer diagnosis and repeated falls. Expecting a prompt repayment, she instead waited more than two years while facing mounting medical costs and relocating closer to family.
The Government has proposed introducing a 12-month repayment deadline, but Consumer NZ argues that the timeframe is still too long. It is also concerned the proposed rules would only apply to new residents, leaving approximately 55,000 current residents without protection.
Research commissioned by Consumer NZ indicates strong public backing for change. It found 84% of New Zealanders support mandatory repayment timeframes, while 83% believe residents should receive their money within three months or less.
The organisation is pushing for a suite of reforms, including full repayment within three months, an interim payment of at least $50,000 or 10% within five working days, and interest penalties for late payments. It also wants villages to publicly disclose typical repayment timeframes to improve transparency.
Industry representatives, including the Retirement Villages Association, have previously argued that repayment delays are often linked to market conditions and the time it takes to resell or “relicense” units.
They say villages must balance cash flow, incoming residents, and operational costs, and warn that imposing strict deadlines could place financial pressure on some operators, particularly smaller or regionally based villages. However, they acknowledge the need for clearer communication with residents about likely timeframes.
Meanwhile, oversight of the sector sits with the Retirement Villages Registrar under the Retirement Villages Act 2003, which governs occupation right agreements and resident protections.
Reviews of the legislation in recent years have highlighted repayment delays as a key concern, alongside transparency and fairness of fees.
Advocacy groups argue that without enforceable time limits, existing protections fall short, leaving residents exposed at a time when financial certainty is often critical.
The petition is open until late May, with Consumer NZ urging widespread support to help drive legislative change and create a fairer system for all retirement village residents.
