"It will at least give them a little more power," Wilson said.
There had been a low number of complaints to the commission because it was too intimidating for some residents, he said.
"We're very pleased overall that there's been some focus put on the subject because there have been issues for years," Wilson said.
"We've been on about this for a long time because the formal [complaints] process is totally inhibiting," he said.
"If you're a bureaucrat and never lived in a village ... it's great in theory but in reality if you're in your mid-80s, you feel intimidated about being told by officialdom, 'No, you don't have a problem, go away.'"
Simon Challies, Ryman Healthcare chief executive, said no Ryman residents had needed to escalate issues to the disputes panel.
"Ryman supports any industry change which helps residents, and mediation is a good additional safety valve ahead of a formal dispute process," Challies said.
"We argued for a mediation step when the new rules were introduced in 2007, as did many in the retirement village sector.
"Given the burgeoning growth in retirees over the next 30 years it makes sense to make sure residents have good options to resolve any serious concerns," he said. "From an industry perspective the level of formal disputes is remarkably low."
Troy Churton, the commission's retirement village programme strategy manager, announced a change in the sector following an investigation which showed:
The formal dispute resolution process is not user-friendly for all residents.
There is a lack of alternative options to resolve disputes.
There is a need for greater advice and support for residents in resolving disputes, as well as better information about the dispute process.
A forum will now be established by the retirement commissioner and the commission to investigate better ways to resolve disputes in retirement villages.
The commission is now conducting a stakeholder forum to determine the implementation of new processes such as mediation and alternative dispute resolution.
That could result in a variation to the Code of Practice process, the commission said.
The report outlined how between 2007 and last year there were 19 villages involved in 23 retirement village disputes.
One village was involved in three disputes and two villages were involved in two disputes. The remaining villages were involved in one dispute each, the report said, without identifying the villages.
Golden oldies
•32,854 NZ retirement village residents by December 2014.
•Up from just over 24,000 three years ago.
•363 registered retirement villages.
•75 have plans to expand or develop further.
(Source: report from consultants JLL released this year)
