A NEW "plain English" contract will make it easier for people to choose which retirement villages best suits their needs, the NSW government says.

All retirement villages in NSW must implement a simplified standard contract by October 1 announced Fair Trading Minister Anthony Roberts (pictured).

The Government says a ‘plain English’ contract will be easier for people to understand, and enable them to choose a retirement village that suits their needs best.

"Under the new standard contract, the confusion and complexity that currently exist will be removed, with the new documents written in plain English," Mr Roberts said.

In addition, a "simplified disclosure statement" will be given to prospective residents before they sign a contract.

Retirement Village Residents Association President Jan Pritchett is pleased by the government’s move to simplify complex documents.

"Retirees and their families will be able to clearly see their rights and obligations and make accurate comparisons between villages," she said.