Planning tips for aging in place when you retire

What’s aging in place?

Aging in place means staying in your own home for as long as you want as you grow older. An overwhelming majority of people want to stay in their home as they age, but only 18% have taken steps to prepare for changing needs. Successful aging in place requires planning home safety modifications, budgeting for accessibility upgrades, setting aside funds for care, and maintaining social connections to prevent isolation.

Planning ahead can help make it happen, no matter where you’re starting from. Here are practical tips to get you started on building an aging-in-place plan.

Should you downsize or age in place?

It’s not an easy question to answer. Nearly half of people plan to stay in their primary residence when they retire, but 46% would consider moving to reduce living expenses. Once retired, 40% have already moved or are considering doing so.¹

Before deciding, consider:

• Costs—Compare the long-term costs of moving against modifications to make your home suitable for your later years. You may find that investing $10,000-$20,000 on upgrades is more cost-effective than relocating, once you factor in realtor fees, taxes, and moving expenses.
• Connections and support—Consider whether your current neighborhood provides the services, facilities, and community you’ll need, such as activities, healthcare, home maintenance support, and public transit.
• Lifestyle—Think about the space you’ll need. Do you plan on taking up gardening? Are you more likely to travel to visit your grandchildren or host them at your place?

Is your home ready for aging in place?

Your home may have been ideal for raising a family, but it may not fit your needs later in life. While 97% of people believe home accessibility affects the quality of life as they age, 68% don’t have doorways wide enough for wheelchair access.² Start with a home assessment to identify upgrades that improve safety, accessibility, and mobility.

Areas to assess and potential upgrades

• Lighting: better lighting in rooms, hallways, and on stairs
• Floors: no-slip flooring or carpeting
• Doorways: wider doorways with no-barrier thresholds
• Steps and stairs: no-step entries, secure handrails, ramps, stairlifts
• Bathrooms: grab bars, zero-threshold shower, walk-in bathtub
• Kitchen: lower counters, easy-to-reach cabinets, and shelves

How do you budget for upgrades?

The costs for upgrades vary widely. Only 37% of adults 50+ have set aside money for long-term care and home modifications, underscoring the importance of early budgeting. Once you identify what your home needs, you begin estimating and planning:

• Set aside money every month specifically for these upgrades and consider adding a home readiness line to your retirement budget.
• Think about recurring home maintenance services you’ll eventually need, such as lawn care, snow removal, and housekeeping.
• Plan to spread upgrades over a few years to make costs more manageable.
• Prioritize safety improvements, such as installing grab bars in bathrooms, improving lighting in poorly lit areas, replacing flooring with no-slip surfaces, and having a zero-step entrance. These are relatively affordable and can go a long way toward preventing falls. 

Are there tax credits for home upgrades?

If you’re 65 or older, it’s worth exploring potential tax credits for seniors. Some states also offer credits for home accessibility upgrades, home support services, and independent living. These credits can help offset costs and make aging in place more financially feasible. Check with your tax professional to see if you qualify.

How do you maintain social connections?

Successful aging in place isn’t only about your home. Loneliness can negatively affect mental, cognitive, and physical health. When social networks shrink in retirement, people are 79.5% less likely to maintain good health and 18.6% more likely to feel depressed. Now is a good time to strengthen your community ties.

Look into community centers, activities, clubs, classes, volunteer opportunities, and even part-time work to connect with people of all age groups and discover new interests. Building these social connections before retirement can make the transition to aging in place easier and healthier.

Put your aging-in-place plan into action

Once you decide that aging in place is for you and have mapped out your needs, speak with your financial professional to put the financial wheels of your plan in motion. Your advisor can help you build a strategy to incorporate home upgrades, maintenance, care costs, and other key considerations into your overall retirement plan. The rest is up to you.

FAQs

What are the pros and cons of aging in place?

Aging in place lets you stay in a familiar home and community and keep your routines, independence, and social connections. It can feel more comfortable and personal than moving. The challenges are that your home may need safety upgrades, maintenance can become harder over time, and your access to care or transportation may be limited. Planning ahead can help you reduce these risks and make aging in place more realistic.

How much does it cost to age in place?

The cost of aging in place varies. Many people spend $10,000–$20,000 on home upgrades such as better lighting, grab bars, and no‑step entries. There are also ongoing costs, such as lawn care, snow removal, housekeeping, and home repairs. If your health needs increase, then in‑home care can add to your expenses, so budgeting early is important.

What home modifications help seniors stay safe?

Safety‑focused home changes include brighter lighting, no‑slip floors, wider doorways, and sturdy handrails on stairs. Bathrooms often need grab bars, walk‑in tubs, or zero‑threshold showers. Other helpful upgrades are ramps or no‑step entrances and kitchens with lower counters and easy‑to‑reach cabinets to support daily activities.

Is aging in place less expensive than assisted living?

Aging in place can be less expensive than assisted living, especially if only basic home upgrades are needed. Assisted living usually comes with high monthly fees, while many home improvements are one‑time costs. If you need regular in‑home care later on, however, expenses may increase. Comparing long‑term costs helps determine which option best fits your situation.

How do you plan for long‑term care if aging in place?

Planning for long‑term care starts with a home assessment to identify needed upgrades. Consider setting aside money each month for modifications and adding a home‑readiness line to your retirement budget. Plan for future services such as housekeeping, lawn care, or snow removal. Spread upgrades over time and prioritize safety improvements first. Working with a financial professional can help you prepare for care costs if your needs change.