Retirement villages are often promoted as an attractive lifestyle option, but the true cost structure can be confusing. Families frequently ask: What will it cost to move in? What are the ongoing fees? And what happens when we leave?
This blog unpacks the 3 main areas of retirement village pricing in New Zealand—entry, weekly living fees, and exit costs—and compares them to in-home care options so families can plan with clarity.
1. Entry Costs
When moving into a retirement village, residents usually purchase a licence to occupy (LTO) rather than owning the property outright.
- Typical entry fees: $400,000–$800,000+, depending on location, size, and amenities (Aged Advisor NZ).
- Upscale or central locations (e.g. Auckland) are higher, while Christchurch and Tauranga may sit slightly lower on average.
- Unlike a traditional home, you don’t gain full ownership—your licence simply allows you to live in the unit.
2. Ongoing Weekly Fees
Alongside the entry cost, most villages charge a weekly fee for services and amenities.
- Typical weekly fees: $100–$200+ per week (Village Guide NZ).
- Covers communal facilities, grounds maintenance, village staff, and security.
- May exclude healthcare support, which is often charged separately.
3. Exit Costs – The Deferred Management Fee (DMF)
One of the least understood charges is the Deferred Management Fee (DMF).
- Usually 20–30% of the original licence price.
- Deducted when you permanently leave the village (or pass away).
- Often capped at 3–5 years of residency.
For example, if you entered a $600,000 unit and the DMF is 30%, your estate would lose $180,000 upon exit.
How Does This Compare to In-Home Care?
Unlike retirement villages, in-home care has no entry or exit fees. Families simply pay an hourly rate for the support they need.
- Private home care rates: $49–$60 per hour, depending on services required.
- Flexibility: Pay only for the hours you use, from a few hours a week to 24/7 care.
- Government support: Means-tested subsidies may reduce private costs for eligible families (NZ Government – Paying for Residential Care).
For many families, the lack of large upfront or exit costs makes in-home care far more budget-friendly and adaptable.
Real Family Experiences
“We cannot thank Home Carers enough, without their professional help it would not have been possible for Mum to remain at home.”
“Life is forever different for him, but this care has allowed his partner some semblance of her former life and his children the security of knowing he was well cared for.”
These testimonials show how transparent, flexible in-home care can be an alternative to high village costs, helping older people remain in their own homes for longer.
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Retirement Village vs In-Home Care: At a Glance
Conclusion
Retirement villages can offer lifestyle benefits, but the entry fees, weekly charges, and exit deductions add up quickly. By comparison, private in-home care offers transparent hourly rates ($49–$60), no entry costs, and complete flexibility.
For many families, in-home care not only saves money but also helps loved ones stay in familiar surroundings with reliable, compassionate support.
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