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Planning tips for aging in place when you retire

Are you hoping to spend your retirement years in your own home? 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.

A toddler looking at an older man with a happy face

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.

1 Manulife John Hancock Retirement’s eleventh annual financial resilience and longevity survey, Manulife John Hancock Retirement, Edelman Public Relations Worldwide Canada Inc. (Edelman), June 2025. This is a commissioned study with the respected research firm Edelman Public Relations Worldwide Canada (Edelman). This information is general in nature and is not intended to constitute legal or investment advice. Edelman and Manulife John Hancock Retirement are not affiliated, and neither is responsible for the liabilities of the other. This report presents the results of research conducted by Edelman on behalf of Manulife John Hancock Retirement. The objectives of this study were to ((1) quantify the financial situation and level of financial stress of John Hancock plan participants and American retirees; (2) determine the key triggers of financial stress; (3) understand the extent to which actions, including actual financial behavior and planning activity, ameliorate stress; (4) assess longevity and retirement preparation and readiness; and (5) investigate custom insight around how retirees are faring in retirement. This was an online survey comprised two participant samples: Manulife John Hancock Retirement plan participants and American retirees. The Manulife John Hancock Retirement plan participant sample comprised of 2,534 Manulife John Hancock Retirement plan participants. The survey for this sample was conducted from 05/09/25 through 06/02/25 with an average survey length of approximately 19 minutes per respondent. Respondents were located from a list of eligible plan participants provided by Manulife John Hancock Retirement. The American retiree sample is comprised of 512 retired Americans, sourced through Angus Reid’s research panel. The survey for this sample was conducted from 05/09/25 through 06/02/25, with an average survey length of approximately 19 minutes per respondent. All statistical testing is done at 0.95 significance levels. Percentages in the tables and charts may not total 100 due to rounding and/or missing categories. 2 Longevity Preparedness Index Methodology: Data for the Longevity Preparedness Index were collected by NORC at the University of Chicago from their AmeriSpeak Panel, a probability-based panel designed to be representative of the US household population. Surveys were conducted online and by phone in English between May 14 and June 5, 2025; median survey completion time was approximately 25 minutes. The final sample was comprised of 1,307 Americans, aged 18 and up, with oversamples of Non-Hispanic Black panelists, Hispanic panelists, and Non-Hispanic Asian American and Pacific Islander panelists to ensure adequate sample size for sub-group analysis. During analysis, survey responses were weighted to represent the US population. LPI scores can range from 0 (not at all prepared for longevity) to 100 (completely prepared for longevity). The overall LPI is composed of eight domains. Each domain captures positive behaviors toward longevity preparedness and awareness of the importance of a domain. Domain scores are each calculated independently and can range from 0 to 100. All eight domain scores are averaged to calculate an overall LPI score. The Longevity Preparedness Index was developed in collaboration with MIT Age Lab and funded by John Hancock. John Hancock provided financial support for the research but did not influence the findings, methodology, or conclusions. John Hancock is not affiliated with the Massachusetts Institute of Technology (MIT) AgeLab, and neither is responsible for the liabilities of the other.

The content of this document is for general information only and is believed to be accurate and reliable as of the posting date, but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice. Please consult your own independent advisor as to any investment, tax, or legal statements made.

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