Retiring Americans overwhelmingly want to age in place or at least in their communities. But whether that makes more sense in retirement than moving to a senior living community or downsizing to a cheaper home is up for debate.
After all, the decision is about more than just the bottom line cost, it’s also about your quality of life in retirement.
“It’s a very complex decision,” says Louis Tennenbaum, an aging-in-place expert. “People need to compare aging in place financially with alternatives."
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Tennenbaum says it’s not uncommon for him to go into a potential client’s home, have a short conversation about what it might cost to install the proper upgrades to age in place, only to not hear back. Upon follow-up, some say they have decided to move instead.
When it comes to deciding whether you should age in place or move, you have to consider all the factors, similar to purchasing a car. You wouldn’t buy a new car not knowing how much fuel it will cost you, how much maintenance it will set you back and whether or not it will meet your future needs.
The same applies to deciding to age in place or move. To help you break it down, here’s a look at the factors you should consider.
Retirement living: do you live in a Peter Pan home?
Coined by Jon Pynoos, a professor emeritus of gerontology at the University of Southern California, a Peter Pan home is one built for people who will never get old.
These houses typically have multi-levels or at least stairs, narrow hallways, inaccessible bathrooms and inadequate lighting. They aren’t designed to prevent falls or provide independence, no matter how old you are.
If your home checks off most of those boxes, then you have a Peter Pan home. That doesn’t mean you can't make upgrades to support aging in place, but it does mean it will likely cost more than if you live in a ranch with an open floor plan.
“Most of our homes do not support aging in place,” says Emily Nabors, associate director of innovation at the National Council on Aging. “As people age and need to change over time, homes are the barrier to independence.”
Tennenbaum says that if your home needs to be almost torn down to make it right, it may be more cost-effective to move.
On the other hand, if you have the financial resources to make the necessary home modifications and will still be able to engage in your daily activities when the renovations are done, then aging in place may be right for you. There are even tax breaks for some modifications.
Can you afford home health care costs?
The median nationwide average cost for assisted living was $4,995 per month last year, according to A Place for Mom’s 2024 Cost of Long-Term Care and Senior Living report. Meanwhile, the national median cost of in-home care was $30 an hour, or $5,720 per month (based on 44 hours of care per week). That's a difference in care costs of $725 per month.
While $725 may not seem like a big deal, if you are on a fixed income, it could have a big impact on your cash flow in retirement. When considering the cost of healthcare between aging in place and assisted living, it’s important to compare what you get with each option to make an apples-to-apples comparison.
“One cost of home care that isn’t included is the cost of home maintenance, the cost of fuel, taxes and insurance,” says Tennenbaum. “You need the total picture of costs.”
If you do decide to age in place or downsize to a cheaper home to age in place, don’t forget to evaluate your proximity to hospitals and doctors, pharmacies and public transportation.
Are your doctors' appointments relatively easy to get to, or are they inaccessible without driving or spending a lot on transportation? These are some of the things to consider.
What will give you the best quality of life in retirement?
From loneliness to accessibility to hobbies, culture, and entertainment, deciding whether to age in place or move goes beyond bottom-line costs. You also have to factor in how your quality of life will be impacted if you leave behind the home or community to which you have become accustomed.
That’s particularly true if you have a network of friends, family and support in your current location. Will you get that if you move? What about social interactions? Do you crave the companionship that can often be found in a retirement community, or do you prefer to maintain the relationships you have already established?
Don’t forget about your lifestyle and hobbies. If you move, will you still have access to all the things that bring you joy? Downsizing to a cheaper home to age in place may seem like a cost-saving move, but if you are spending hundreds of dollars to fly across the country to see loved ones or fall into a depression, is it worth it?
Whether you decide to age in place or move is a personal choice. But it isn’t one you should make blindly. “Every case is individual. Just like when you get a financial plan from an adviser, you have to lay out what if this happens or that happens,” says Tennenbaum. “You have to take some risks, but you have to make an educated decision.”
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