Retirement Living Is No Longer A Retreat
Scott Lester, executive director of Senior Trust Retirement Village Income Generator Limited, says the shift reflects a deeper cultural change in how New Zealanders approach later life.
Retirement living is changing as New Zealand’s ageing population drives demand for communities that offer more than just care.
Scott Lester, executive director of Senior Trust Retirement Village Income Generator Limited, says the shift reflects a deeper cultural change in how New Zealanders approach later life.
“In our experience, today’s retirees want options that align with how they have lived their lives so far. They are independent, experienced and financially active. The sector needs to keep pace with that,” says Lester.
Senior Trust Retirement Village Income Generator Limited (STIG) provides secured lending to the senior living and aged care sector by financing experienced operators. The firm has observed a trend towards lifestyle-driven design, social infrastructure, and wellness-oriented development.
Instead of downsizing into traditional models of care, many over-60s are looking for purpose-built communities that prioritise connection, independence, and long-term wellbeing. This is influencing not only the way villages are designed, but also how they are funded and delivered.
Lester says these communities are often indistinguishable from high-quality residential developments, with walking trails, shared green spaces, wellness centres, and modern interiors.
“Design has become fundamental. People want more natural light, open spaces, and places that encourage conversation, movement and social activity. It’s not necessarily about luxury. It’s about dignity and good design working together,” he says.
This evolution is not unique to New Zealand. In Australia, operators have seen success with resort-style villages. In the United Kingdom and United States, developers are adopting mixed-use models that combine housing with hospitality, cultural amenities, and preventive health services. The goal is to support an active, connected lifestyle well into later life.
New Zealand’s context is shaped by a few specific dynamics. Some retirees own their homes outright and are in a position to reinvest that equity into retirement housing that supports how they want to live next. However, Lester warns that rising demand and limited supply could quickly create access barriers.
“The number of New Zealanders aged over 75 is forecast to double in the next 20 years. Without faster development, we risk creating a gap in provision” he says.
That gap could have knock-on effects across the economy. Retirement village developments often release larger homes back into the housing market for younger families. At the same time, well-designed communities reduce pressure on the public health system by supporting preventative care and reducing isolation.
For those developing or funding retirement villages, there are a number of considerations now shaping the sector, including;
1. Design for connection, not just care
New villages must reflect a modern understanding of how people want to live. Spaces should be built for movement, social interaction and daily activity. This reduces isolation and increases well-being.
2. Plan for long-term value
Lenders and investors must assess not only the quality of the operator, but the relevance of the development to future demand.
For many boomers, retirement is not the end of the road, but the start of a new chapter. They are bringing with them expectations shaped by travel, design, and decades of active living.
As Lester puts it, “This generation reshaped every stage of life they moved through. Retirement will be no different. We need to support that with housing that is flexible, future-focused, and fit for purpose.”
