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How are rest homes different to retirement villages?

Rest homes and retirement villages are terms that are often used incorrectly and interchangeably which causes confusion. Not only do they serve different purposes they are governed by different legislation and regulations.

To many people, the word rest home includes ANY facility where older people live and where they can receive support. This is not quite true. If people need significant care and support this is generally provided in a residential care facility where entry criteria apply. See also - Is a rest home, care home, and residential care the same? The Aged Related Residential Care Agreement (ARRC)  between Health New Zealand | Te Whatu Ora (previously DHBs) and residential care providers governs this service. Certification of facilities is undertaken by the Ministry of Health.

The main purpose of a retirement village is to provide accommodation together with services and/or facilities, predominantly for persons in their retirement for which the residents pay, or agree to pay, a capital sum known as a ORA  The Retirement Villages Act 2003 governs the operation of these services.

Retirement village residents are generally independent and traditionally may have required little by way of support.

Things have changed. Nowadays, not only do many retirement villages have an onsite residential facility, many now offer a wide range of support such as restaurant or meal services, servicing of apartments, right up to medical services such as temporary personal care with wound dressings or medication. Support of this nature, when provided by the village, comes at a cost. If the village permits, a community-based home support service may provide support services to its residents. If you have been assessed as needing this support, you may be eligible for subsided services. Your Village Contract will include details about your options.

In some instances, full residential care services can be delivered into a resident’s home within a village, usually a care suite. A care suite is a true hybrid of residential care and village. You will need specialist legal advice when signing up for this offering. Your lawyer will be able to explain which services are covered by the contract(s) you sign.

Find information on ALL retirement villages in every region of New Zealand on https://www.eldernet.co.nz/retirement-villages. If you need support at home find services in your region on Making Life Easier.

Eldernet is New Zealand's leading provider of information for older people.  Eldernet is the only website that has DAILY UPDATES on rest home, hospital, rest home dementia and specialist dementia hospitals, also known as psychogeriatric (or occasionally D6). Find VACANCIES here.

Updated: 3 Apr 2024
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