Considerations About Aging in Place

Stephanie Stearns is an assistant director of Insurance Solutions at Northwestern Mutual.

As we get older, more people are considering the possibility of aging in place. By 2030, one in five Americans will be 65 or older,¹ but this generation is pioneering a new era of aging that they didn't see modeled by their parents. Thanks to healthcare advances, people are living healthier, more productive lives into their 80s, 90s, and beyond.

Even if it’s difficult to imagine yourself significantly older, most people agree that they want to be in control of this aging journey. For many, this means staying in their own homes rather than moving into assisted living or a nursing home. But, planning ahead is crucial to making aging in place realistic.

Here are some considerations if you or your loved ones are thinking about aging in place.

What is aging in place?

Aging in place refers to the desire to remain independent in your own home as you grow older rather than moving to an assisted living facility or nursing home. A person might stay in their current home, downsize, or move in with a friend or family member.

The National Institute on Aging suggests planning for aging in place before you need a lot of support. This way, you can make important decisions while you’re still able to—like deciding how much help you might want or need in the future and what that support will look like.

Pros and cons of aging in place vs. assisted living

Assisted living facilities provide a middle ground between independent living and nursing homes. Residents of assisted living facilities can live in their own apartments—but share common and social spaces. They often receive meals along with help for other basic parts of life called activities of daily living. Let’s take a look at aging in place compared with moving into assisted living.

Pros:

Comfort and familiarity

Staying in a familiar environment with neighbors you already know can contribute to emotional well-being. It’s easy to see why people enjoy maintaining a routine, having extra space for pets, hosting family and friends, keeping their belongings, and using familiar kitchen appliances.

Independence

You may value the privacy and autonomy of living at home, coming and going as you please without the constraints of institutional settings.

Personalized care

Tailoring your care services and providers to fit your preferences can enhance your quality of life.

On the other hand, here are some concerns you’ll have to think through if you want to try aging in place.

Cons:

Financial resources

Funding the costs of modifications to your home and home-based care can be challenging. You might need to get a ramp installed and widen doorways, along with other changes. You’ll probably need to hire and manage workers to handle these changes. And you’ll still have seasonal chores to deal with.

But with careful financial planning and resource exploration, you can manage this challenge. As you plan, remember to include ongoing property taxes, utilities, rent/mortgage, and home insurance.

Isolation

Without adequate social support, aging in place can lead to loneliness and impact mental health. Thoughtful planning, like arranging for companion services and securing transportation, can make it more fulfilling.

Impact on family caregivers

Although many people have a hard time envisioning themselves as getting older, the reality is that activities of daily living are likely to become more difficult. If you need significant help, family and friends will be there for you, but planning ahead can reduce financial and emotional stress for everyone involved.

Healthcare access

If you’re at home, it can be more difficult to connect with healthcare facilities. This is especially true in rural areas.

Setting up the home for safety

If you want to age in place, you can take some practical steps around the house to prepare. Consider potential hazards like throw rugs and clutter, which can lead to falls—the leading costly and preventable cause of injury for adults 65 and older.² Install safety features such as handrails in bathrooms to further support mobility and reduce risks.

Legal and practical considerations

Your financial advisor and an elder-law attorney can help ensure you are prepared for the financial aspects of aging in place. Key legal documents include:

1. A durable power of attorney, which authorizes someone to handle financial transactions and legal decisions if you become unable to do so yourself.
2. A healthcare proxy, also known as a medical power of attorney, appoints someone to make healthcare decisions on your behalf.

While discussing these topics can feel awkward or uncomfortable, it’s important to have these conversations. Consult with experts, and share your decisions with your loved ones. Communication with family members about your wishes is crucial to minimize conflicts or misunderstandings.

How to cover the costs

According to the Northwestern Mutual study What Care Costs published in March 2025, the average hourly rate for a home health aide is $34. For a licensed practical nurse, a visit is about $148, and the rate goes up to $162 per visit for a registered nurse. Consider sources like these:

1. Private funds: Use your savings, assets, or investments.
2. Long-term care insurance: Consider purchasing insurance to cover future care costs. For example, you may be able to get reimbursed for the cost of a home health aide.
3. Medicaid and Veterans Affairs benefits: These programs might help, based on your income, assets, and other eligibility requirements.

The role of health when aging in place

Sudden health events like a stroke or a major fall require immediate care, which can initially seem like a loss of independence but often enhances it by getting the person connected with professional help. Proactively addressing these potential challenges with family members before a crisis occurs can help you maintain control and enjoy a fulfilling, independent life.

Perspectives on long-term care

As people live longer, the need for long-term care becomes increasingly common. Should that occur, a resounding 74 percent of Americans say they want to remain in their house and receive in-home care.³ And the good news is that the private home is where most care takes place, especially early on.

Long-term care differs significantly from traditional medical care and includes services that assist individuals with prolonged physical illnesses, disabilities, or cognitive impairments. Long-term care costs aren’t covered by Medicare, making it critical to have a payment plan in place.⁴

The cost of covering long-term care can vary greatly depending on the type and amount of care you need—which also affects where it can be best delivered. You can see what care costs in your local area using this interactive online tool.

Understand aging in place resources

Aging in place can mean staying connected. Programs and resources can help you feel safe and confident during this stage of your life. Your state or county might have resources, and you might want to look into organizations such as these:

• AARP
• The National Aging in Place Council
• The National Council on Aging
• The National Institute on Aging

Plan ahead with an expert

It’s wise to consider your options as you begin a new stage of life. You deserve choice and control over your future, and your Northwestern Mutual financial advisor can help with solutions that are best for you and your family. And your advisor can show you the impact of your decisions on your financial plan and loved ones. When you fully understand the options, you may be able to reduce the emotional, physical, and financial strain on yourself and your family.