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Seminar will warn of “fish-hooks” at retirement villages

News from CFFC
The financial fish-hooks of moving into a retirement village will be explored at a free public seminar in Lower Hutt on March 14. Many people do not fully understand the financial implications of retirement village contracts when they pay for a ‘license to occupy’ a unit, says the National Manager of Retirement Villages at the Commission for Financial Capability (CFFC), Mr Troy Churton.

For example, the occupation right agreements offered by some village companies have little financial sympathy when an occupancy ends, due to the resident passing away or having to move to more intensive rest home care. The company may not pay out the unit’s capital to the family until the unit is relicensed, which can take months in some areas, and they may demand that weekly fees continue to be paid during that time.

“Another fish-hook may be if a married couple buy into an independent-living unit, then the husband or wife needs to move into a care facility, additional costs may apply,” says Churton.

There are 25 retirement villages in the Hutt Valley, Wellington and Kapiti Coast, each containing 60-100 units. More are planned as the region’s 75+ population increases 87% from about 31,000 today to nearly 58,000 in 2033.

Churton is running the free seminar on behalf of the CFFC, an independent government agency that monitors the retirement village industry.

“The CFFC aims to ensure New Zealanders are fully informed objectively of the implications of moving into a retirement village before they do so, and have time to obtain legal advice and discuss their decision with family,” says Churton.

To register for the free seminar in Lower Hutt on March 14, phone the CFFC on 0800 268 269 or visit
https://www.eventfinda.co.nz/2019/thinking-of-living-in-retirement-village/lower-hutt

1 comment:

  1. Anabel, 21. February 2019, 16:39

    The rest-homes are set up as financial bear traps, not fish hooks.