What Is Aging in Place? Benefits, Costs, and How to Prepare
Key takeaways
Aging in place means staying in your own home as you grow older rather than moving to an assisted living facility or nursing home.
For many people, staying in the home they love is an important part of feeling independent, secure, and connected to the life they’ve built.
Nearly three-quarters of Americans would prefer in-home care if a health event required long-term support, but more than half have not prepared financially for their long-term care needs.1
Early planning can help make it more affordable and realistic to age in place.
Consider retirement income and assets, home equity, long-term care insurance, hybrid insurance solutions, and VA benefits as potential ways to help fund aging in place.
Stephanie Stearns is an assistant director of Insurance Solutions at Northwestern Mutual.
By 2030, one in five Americans will be 65 or older,2 and longer, healthier lives are giving more people the opportunity to shape where and how they age.
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, that means staying in their own homes rather than moving into assisted living or a nursing home.
Achieving that goal often requires planning for the support that may be needed over time. That support may come from family caregivers, home health aides, or other care professionals who help individuals remain independent at home for as long as possible.
Often called “aging in place,” this approach allows people to remain in familiar surroundings while receiving assistance that can help them maintain their independence and quality of life as they age.
What do we mean by long-term care support?
Long-term care isn’t healthcare. It’s the everyday help people may need to live safely, comfortably, and as independently as possible.
For some, that might mean help with tasks like managing finances, getting to appointments, or preparing meals. For others, it could include assistance with bathing, dressing, eating, or moving around. Long-term care covers a wide range of personal support services that help people navigate daily life. While these services often work alongside healthcare, they are generally focused on daily living and independence rather than medical treatment.
Northwestern Mutual’s 2026 Planning & Progress Study found that 73 percent of Americans would prefer in-home care if a health event required long-term support, compared with 14 percent who would prefer a nursing home or assisted living facility. That preference for in-home care rises to 83 percent among boomers+ and 78 percent among Gen X.1
Planning before care is needed can preserve more choices—giving you time to assess your home, build a support network, and prepare for the costs instead of making those decisions during a crisis.
That creates the central challenge: Wanting to age at home is not the same as being prepared to do it. A realistic plan needs to account for housing, care, transportation, legal decisions, family support, and how you will pay for it all.
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. While many people value the independence and familiarity of staying at home, doing so may still require support from family caregivers, home health aides, or other care professionals as needs change over time.
The National Institute on Aging suggests planning for aging in place before you need a lot of support. While no one can predict if, when, or how much help they may need in the future, planning ahead can help you think through who you might turn to for support, what resources may be available, and how you would prefer to receive care if your needs change over time.
Pros and cons of aging in place vs. assisted living
Both options can help people maintain independence and quality of life as they age, but they do so in different ways. Aging in place allows you to remain at home in familiar surroundings while receiving support as needed. Assisted living facilities provide a middle ground between independent living and nursing homes. Residents can live in private apartments while sharing common and social spaces, often receiving meals and assistance with activities of daily living as their needs change. Let's take a look at how aging in place compares with 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
Receiving support from family caregivers, trusted professionals, and others in your community can help you maintain familiar routines and relationships while getting the assistance you need.
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 or mortgage payments, and home insurance. Planning matters because 54 percent of Americans have not prepared financially for their own potential long-term care needs, according to the 2026 Planning & Progress Study.1
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
Family and friends may become an important part of your support system—helping with transportation, meals, appointments, household tasks, or the cost of care. Those responsibilities can affect their time, finances, and well-being, especially when a health event forces decisions quickly. Among current and former caregivers, 69 percent have taken at least one step to address the financial impact of caregiving, including 32 percent who reduced spending and 25 percent who used personal savings or emergency funds.1 Talking about roles, limits, and resources early can reduce stress and help protect the people you may rely on.
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.3 Install safety features such as handrails in bathrooms to further support mobility and reduce risks.
In-home care can include mobility support, housekeeping, personal care tasks like dressing and bathing, and supervision or companionship for those with memory issues. Geriatric specialists, home care agencies, social workers, and your doctor can assess your needs and provide recommendations for home care services. Developing a tailored plan and sharing it with your support network is a crucial step in aging in place.
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:
- A durable power of attorney, which authorizes someone to handle financial transactions and legal decisions if you become unable to do so yourself.
- 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 2025 What Care Costs study, published in March 2026, the annual cost of a home health aide providing eight hours of care per day was $99,280.3 Based on Northwestern Mutual’s analysis, if care costs increase by 5 percent annually, the same service could exceed half a million dollars per year by 2059—a time when many of today’s working adults may need care.
With this in mind and the fact that costs also can vary significantly based on the type, amount, and location of care, it’s important to consider how you might pay for support. Potential sources include:
- Private funds: Use your savings, assets, or investments. While this can provide flexibility, it may also require accessing assets unexpectedly or during periods of market volatility. It’s also important to consider whether those funds are earmarked for other retirement goals, such as maintaining your lifestyle, supporting a spouse, or leaving a legacy.
- Long-term care insurance and hybrid insurance solutions: Provide funds specifically earmarked for care. These solutions can be used on their own or combined with personal assets, helping you share or transfer risk while preserving other resources for retirement income, lifestyle goals, or legacy plans. Some hybrid solutions offer benefits even if long-term care is never needed, and existing life insurance may be repositioned through a 1035 exchange to help fund future care needs.
- Government programs: Veterans Affairs (VA) benefits and Medicaid may help pay for long-term care for those who qualify, but eligibility requirements can be strict and choices regarding care settings, services, and providers limited.
The role of health when aging in place
Sudden health events, such as a stroke or major fall, may require immediate support. While this can initially feel like a loss of independence, receiving the right care can help preserve independence and quality of life over time.
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
Long-term care is not a remote possibility for many families. Northwestern Mutual’s 2026 Planning & Progress Study found that 61 percent of Americans believe they are likely to need long-term care, while 56 percent expect to provide it for a loved one.1 Because care can affect both the person receiving it and the people supporting them, planning for how it will be funded should begin well before a need arises.
Long-term care differs significantly from traditional medical care and includes services that assist individuals with prolonged physical illnesses, disabilities, or cognitive impairments. Importantly, long-term care costs also 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. You can even view cost-of-care estimates by ZIP code. The tool can also project future costs by city using different inflation assumptions (1 percent to 6 percent). This can help people create a more personalized plan based on where they expect or want to live as they age.
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Let’s get startedUnderstand 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 before care is needed. Your Northwestern Mutual financial advisor can help you estimate potential care and housing costs; identify possible funding sources; and see how those choices could affect your retirement income, other goals, and loved ones. That planning can turn a preference to age at home into a practical plan—and give you and your family more confidence about what comes next.
Frequently Asked Questions
What does aging in place mean?
Aging in place means remaining in your own home or another familiar community setting as you grow older instead of moving to an assisted living facility or nursing home. It may involve modifying the home and arranging services that support changing health, mobility, and personal care needs.
How do I prepare to age in place?
Start by considering your future care needs, support network, transportation, healthcare access, and the safety and accessibility of your home. Your financial advisor and elder-law attorney can also help you plan for potential costs and put key legal documents in place.
How much does aging in place cost?
Costs depend on your location, the condition of your home, and the amount and type of help you need. Expenses may include home modifications, maintenance, transportation, medical equipment, and in-home care, in addition to regular housing costs such as property taxes, utilities, insurance, and rent or mortgage payments.
What home modifications can support aging in place?
Helpful updates may include removing tripping hazards, improving lighting, adding bathroom grab bars and handrails, installing a ramp, widening doorways, and creating an accessible bedroom and bathroom on the main floor. The right changes depend on the home and the person’s mobility and health needs.
When should I start planning to age in place?
It’s best to begin before you need significant support and while you have time to compare care options, evaluate your home, discuss your wishes with loved ones, and prepare financially. Planning early can give you more control and help your family avoid making difficult decisions during a health crisis.
