An ageing population, housing supply issues and legislative reform aren’t just challenges being faced by Australia’s retirement living sector – they’re happening in New Zealand, too.
This was the narrative as leaders from Australia’s retirement living industry headed across the ditch this week for the Retirement Villages Association (RVA) NZ’s annual national conference, this year held in Wellington.
Retirement Living Council (RLC) Executive Director Daniel Gannon said the event provided an important opportunity for industry professionals to collaborate and learn as they tackle similar challenges being faced in Australia.
“Unsurprisingly, our two countries are facing similar challenges associated with ageing populations, but also housing supply and affordability crises. The good news is that retirement villages can play a major role in solving these issues,” Mr Gannon said.
“Older Australians and New Zealanders have worked hard and deserve to enjoy their retirement, but both countries are grappling with housing and caring for these people.”
Mr Gannon said the fastest growing age cohort in both countries over the past decade – from 2013 to 2023 – are people aged between 75 and 79.
“Over the past decade, this age cohort has grown by more than 57,000 people in New Zealand, or an increase of 54 per cent.
“In Australia this cohort has grown by almost 360,000 people – an increase of 63 per cent.
“This underscores the need for governments and planning systems in both countries to ensure they are retirement ready.”
Fisher Funds CEO and former National Party Cabinet Minister, Simon Power, provided the opening keynote for the conference, outlining how investors see the retirement village sector.
Following this important scene-set, renowned Australian demographer Simon Kuestenmacher took delegates into a deep dive of New Zealand’s largest generation – the baby boomers – and how they will change the country forever.
“But the workforce situation in New Zealand is more challenging than it is in Australia. You need ‘worker bees’ providing care for older New Zealanders – fast,” he said.
ANZ New Zealand Chief Economist Sharon Zollner gave a thorough overview of the current state of New Zealand’s economy.
“A rising jobless rate and high inventories are in the ‘challenges’ column, but falling interest rates, net migration, and tax and policy change are short-term opportunities across New Zealand,” she said.
Tamar Krebs, founder and Executive Director of Group Homes Australia, delivered a thought-provoking session about doing dementia differently.
“Prior to founding Group Homes, I would ask myself, ‘could I live in the place I was working’? The answer became clear – I couldn’t. Long corridors, pungent smells, rigid routines,” she said.
“Why create ‘home-like’ accommodation when we can create homes?”
Similarly, DCM Group CEO Chris Baynes focused on the shortage of care beds in Australia and the attitude of baby boomers who want to avoid moving into residential aged care.
Chief Executive of the UK’s Associated Retirement Community Operators group, Michael Voges, was full of praise for
“New Zealand seems to be very good at providing middle-market affordability for retirees, they have strong and consistent regulation, and their care and support offerings are (almost) right. New Zealand is much better regulated than the United Kingdom.”
Other take-outs from the RVA NZ conference are listed below.
- Jeremy Barker, Senior Business Development Broker for Gallagher Insurance, addressed climate-related damages costs, the insurability of assets in New Zealand with underlying flood risks increasing, and the potential long-term impact on insurance.
- Deborah Hart, independent chair of the Retirement Village Residents’ Council, addressed the current sentiment of residents, highlighting key concerns including the desire for a full legislative review, capital repayment and occupation rights agreements. She labelled capital repayment and potential buybacks as a “thorny issue”.
- MP and the Associate Minister of Housing, Hon Tama Potaka, thanked the sector for improving the lives of older Kiwis, while flagging the need for minimising red and green tape in planning systems, and expressing that industry should be applauded for its proactive work.
- Dr Helen Kenealy (Metlifecare), Sam Halstead (Latitude Strategy and Communication), Gareth Galloway (PwC New Zealand), and Martin Oettli (Real Living Group) discussed whether the sector should have done more reputation work in years past and contemplated industry’s approach to opposing buybacks.
- Other speakers over the course of the two days included Retirement Commissioner Jane Wrightson, Chair of the RVA’s sustainability committee Maggie Owens, Mather Solutions Limited Managing Director Dr Jim Mather and co-founder of Raglan Food Co Tesh Randall.
Mr Gannon congratulated retiring RVA NZ Executive Director, John Collyns, on being presented life membership at the gala dinner after 17 years in the role.
“John has been a great friend of the RLC over these two decades. We wish him and Janet a wonderful retirement as they now move into a village themselves.”
The RLC looks forward to continuing its strong relationship with the RVA with incoming Executive Director Michelle Palmer.