When planning your future living arrangements, it’s common for people to confuse “retirement village” and “rest home.” This article breaks down the differences so you can confidently choose the option that best fits your lifestyle and care needs.
When exploring future living options, many people mistakenly use the terms "retirement village" and "rest home" interchangeably. However, these two types of living arrangements serve very different purposes and are designed for distinct stages of life.
This article clarifies the key differences between retirement villages and rest homes, helping you make an informed decision about the best option for your future.
Retirement villages: independence and community
Retirement villages are designed for people who are largely independent but looking for a lifestyle that offers more convenience, community, and some support services.
Christa Engelbrecht, Village Manager at Whitby Lakes Retirement Village, highlights that many residents move into retirement villages to enjoy “companionship and more time for themselves, without the hassle of maintaining a property.” For many, this decision is about enhancing their quality of life—having freedom and independence, but knowing that support is available if needed.
Residents playing bowls at a retirement village
Here are some key features of retirement villages:
- Independent and assisted living: Residents enjoy their own private space, typically by purchasing or leasing a unit or villa. They maintain a high degree of autonomy and can choose additional support services, such as housekeeping or meal preparation, either provided by the village or external care providers.
- Social and active environment: Villages often offer a wide range of social activities, clubs, and outings, encouraging residents to stay active and engaged. This vibrant community lifestyle helps combat loneliness and ensures there’s always something going on.
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Convenient services and amenities:
- Maintenance and housekeeping: The village operator typically handles exterior maintenance, while services like cleaning and laundry are available as optional add-ons.
- Meal options: Many villages have dining facilities and cafes, or they offer prepared meal services.
- Safety and security: Gated communities and on-site staff ensure a safe and secure environment for residents.
- Transportation: Shuttle services or ride-sharing options help residents run errands or attend appointments easily.
Residents may have retired from work, but as Engelbrecht says, they certainly haven’t “retired from life.”
Rest homes: comprehensive care and support
Rest homes, also known as care homes or aged residential care, provide 24/7 support for people who need assistance with daily living activities due to age-related health conditions or disabilities. These facilities are intended for individuals who can no longer live independently and require a higher level of care.
Before moving into a rest home, individuals in New Zealand undergo a Needs Assessment through the Needs Assessment and Service Coordination (NASC) agency. This assessment determines whether full-time residential care is necessary and at what level of care—ranging from rest home care to more intensive services like dementia or hospital-level care.
Resident of a rest home receiving nursing care.
Key services offered at rest homes include:
- Personal care: Assistance with bathing, dressing, toileting, and other daily activities.
- Medical and nursing care: Around-the-clock medical attention, medication management, and wound care.
- Dietary support: Catering to specific dietary needs and preferences.
- Occupational and physiotherapy: Tailored programs to help maintain physical and mental well-being.
Unlike retirement villages, rest homes are often chosen out of necessity rather than preference, and decisions usually need to be made in a short time frame.
Key differences: retirement villages vs. rest homes
To help you better understand the distinction, here’s a breakdown of the main differences between retirement villages and rest homes.
| Aspect | Retirement villages | Rest homes |
|---|---|---|
| Ideal for | Independent individuals seeking community and convenience. | Those needing regular assistance with daiy activities. |
| Type of living | Independent or assisted living. | Full residential care for people who need constant support. |
| Autonomy | High degree of independence. | Limited autonomy, depending on health needs. |
| Accommodation | Purchase or lease a unit or villa. | Accommodation is provided within the facility. |
| Amenities | Social activities, housekeeping, meal options, security. | Personal care, medical attention, and nursing care. |
| Level of care | Minimal, with optional support services. | Comprehensive, 24/7 care. |
| Funding | Primarily self-funded. | Often government-subsidised, depending on asset/income levels. |
| Legislation | Governed by the Retirement Villages Act 2003. | Governed by the Residential Care and Disability Support Services Act 2018. |
When villages and rest homes overlap
It’s common for retirement villages to have a rest home or care facility on-site or nearby, which can lead to confusion. About two-thirds of New Zealand’s retirement villages include dedicated care facilities, offering peace of mind for residents who may require more intensive support in the future.
In these cases, the independent living and care services are usually managed separately, but the presence of a care facility means residents can transition smoothly if their health needs change, without having to relocate to a new community.
Everything you need to know.
Legislative differences
Understanding the legislation governing retirement villages and rest homes is important for making an informed decision:
- Retirement Villages Act 2003: This Act ensures that all retirement villages in New Zealand are registered and meet specific standards. It includes protections for residents, such as the right to live in a safe environment, participate in village decision-making, and access independent dispute resolution if necessary. The Act is monitored by the Retirement Commissioner.
- Residential Care and Disability Support Services Act 2018: This Act governs rest homes and care facilities, outlining standards for care, certification, and monitoring. It ensures that residents receive the appropriate level of care based on their needs and that facilities meet strict guidelines for safety and quality.
Making the right choice
Choosing between a retirement village and a rest home comes down to assessing your current and potential future needs. Retirement villages are ideal for those who are independent but want to enjoy a vibrant community, with some added conveniences. Rest homes, on the other hand, are best suited for individuals who need comprehensive support and care.
If you’re unsure about which option is right for you or your loved ones, seeking advice from professionals – whether from a village, rest home, or a healthcare provider – can help clarify the decision.
Further reading
The Costs of Living in a Retirement Village
