Breaking down retirement costs

Breaking down retirement costs

For many older Kiwis considering the next step in their living arrangements, understanding the costs of a move to a retirement village is a significant part of the decision-making process.

“How much will it actually cost?” is one of the most frequently asked questions.

We are committed to providing clear and transparent information to help to make the financial side of village living easier to understand. With experience operating 37 villages across the country, we want to take away the guesswork and hidden costs, providing retirees and their families with clear information to help them make informed choices with confidence.

Understanding the costs of retirement village living

Navigating finances in retirement and understanding the often-complex costs of retirement villages can seem overwhelming for many. Metlifecare’s approach to transparency starts with breaking the costs into bite-sized, manageable information.

Our Money Matters Guide offers a simple way to get to grips with the numbers. It explains three key financial considerations in moving to a retirement village:

• What you’ll need to pay upfront –the capital sum payable on entry
• What the ongoing living costs are – such as village fees, which are a contribution towards the cost of the village operating expenses
• What happens after you leave the village – explaining the portion of the initial capital sum that will be repaid to you or your loved ones.

This clarity helps retirees to apply the numbers directly to their own situations, helping them better determine whether village living will align with their budgets.

Understanding the bigger picture

While it’s easy to focus on the upfront and ongoing fees associated with retirement village living, many homeowners can overlook the ongoing expenses of staying in their own home.

Rates, maintenance, insurance, utility bills, and unexpected repair costs can add up quickly. These expenses are often spread across multiple payments, making it hard to track how much you're truly spending.

Our helpful cost comparison table, within the Money Matters Guide, helps to put this into perspective. This side-by-side analysis compares typical monthly homeownership expenses with expenses that are generally included within the village fee.

While the occupation right agreement model is not for everyone, many residents appreciate that their village fee consolidates many of the unpredictable costs, like external building maintenance, into a single, more predictable fee.

For example, village fees typically cover:

• External maintenance of your home gardens and facilities (no more weekend DIY!).
• Building insurance
• Council rates and water
• Access to on-site facilities such as gyms, pools, libraries, and event spaces.
• On-site staff and the security of a friendly village community.

Why this matters

When it comes to discussing finances, Metlifecare recognises the importance of honesty and clarity. Moving to a retirement village is about more than money—it’s an emotional decision. It’s about creating a new home where retirees feel supported, social and secure.

Village living is not just about reducing costs. It’s an investment in quality of life. Residents can find their health, happiness, and social connections improve after making the move. But these emotional benefits shouldn’t come at the expense of financial peace of mind. For Metlifecare, ensuring their customers feel fully informed is just as vital as offering friendly and welcoming environments.

You can download the Money Matters Guide today to get started. It’s free, simple to understand, and packed with helpful information about costs and fees associated with village living.

Download the guide at www.metlifecare.co.nz/guides or make an appointment to chat with a Metlifecare sales executive at 0800 909 303.