Planning to age in place? Watch out for these hidden costs.

By Edd and Cynthia Staton

Most retirees want to stay in their homes as they age. It might not be worth it.

The financial consequences of aging in place are often underestimated.

A majority of older Americans prefer to age in place. Remaining in an existing home has powerful appeal compared with uprooting one's life and relocating to somewhere new and unfamiliar. The perceived loss of independence and control that accompanies moving into an assisted-living facility adds an additional layer of concern.

While the emotional benefits of aging in place are understood, the financial consequences are often underestimated. The strong desire to remain at home can lead owners to downplay future expenses and assume things will somehow "work out." Those unanticipated costs can quietly erode retirement savings if retirees aren't prepared.

Opinion: This is the future of senior housing

As many as 77% of people age 50 and older want to stay in their own home as they age, but only 49% think that they will be able to do so, according to AARP. Less than 4% of all U.S. homes offer single-floor living, no-step entries, and wide hallways and doorways - the key features of accessible housing - according to Harvard University's Joint Center for Housing Studies.

Read: 'We don't have enough homes to meet our aging needs': The ideal home for aging in place might not even exist

Home modifications

The first and most obvious expenditures are adapting a home to meet changing physical needs. Initial modifications are relatively modest, like installing grab bars in bathrooms or replacing doorknobs with lever handles.

But if mobility worsens, especially when the decline is rapid, "costs can increase exponentially," says Evan Farr, certified elder-law attorney and retirement planner at Farr Law Firm. "Installing stairlifts, reconfiguring bathrooms, widening doorways and adding entrance ramps may carry a price tag in excess of tens of thousands of dollars."

The outlay can be even more substantial when a multistory home is involved. Adding a first-floor bedroom and bath or installing an elevator can rival the cost of a major renovation.

Unfortunately, homeowners often delay expensive upgrades until they're urgently needed, causing important decisions to be made under pressure and being forced to pay a premium for last-minute work.

Opinion: Why do older sellers get less money for their homes than younger sellers?

Maintenance and repairs

When budgeting for retirement, people tend to include only their home's fixed expenses - mortgage, insurance and taxes.

"If you want to age in place, it's important to remember the home keeps aging too," says Carroll Golden, executive director of the National Association of Insurance and Financial Advisors' Knowledge Centers. "A home that seemed fine at 55 may not work well at 75 without steady spending on repairs and upkeep."

Over time, roofs and plumbing leak, HVAC systems deteriorate and appliances wear out. It's difficult to predict when these expensive issues will show up, and they often deplete emergency savings.

"Deferred maintenance is quite common among seniors who wish to avoid disrupting their way of life," says Farr. "Therefore, what begins as a series of small failures eventually grows into large and costly ones."

Read: Over age 65? Watch out for these costly mistakes when selling your home.

Upkeep expenses

Day-to-day upkeep like mowing the lawn, shoveling snow and even basic housekeeping can become burdensome or unsafe as physical limitations increase. As a result, many older homeowners start outsourcing these chores one by one.

Each of these budget items might seem affordable, but upkeep and maintenance expenses add up. "Collectively, however, they can equal or surpass the monthly fees associated with a structured senior-housing community," says Farr.

Opinion: The next big real-estate boom: Homes for people living alone

Healthcare costs at home

Aging often involves a growing list of in-home healthcare aides and services no matter where you live. Much like the recurring services described above, common items like reachers, sock helpers and hearing aids might seem relatively inexpensive purchased separately. But the accumulated costs over time can balloon to a sum that can catch budget-conscious seniors off guard.

Many retirees pay out of pocket for health-related supplies that aren't fully covered by insurance, some of which include incontinence products, wound-care materials and wearable monitoring devices. Medical-alert and emergency-call monitoring systems involve the cost of equipment, installation and activation in addition to monthly fees.

The average senior requires five to seven prescription drugs, and 50% don't take them as directed. For those aging in place with multiple chronic conditions, keeping up with which meds to take when can feel like a full-time job.

When medication management cannot be handled with simple pill organizers, high-tech devices are available that dispense medications at preprogrammed times and alert caregivers or family members when a dose is missed. Upfront costs can top $1,000, along with monthly subscription fees of $100 or more.

Then there are ongoing costs that tend to increase with age, like transportation to appointments. Bigger-ticket items like hospital beds and specialized medical equipment add to the financial strain.

Medicare helps with some of these expenses, but a surprising amount ends up being paid for with personal funds.

In-home care and support

Many older adults planning to stay in their homes assume they'll always be able to live independently. The reality is that most will require at least some level of assistance.

The biggest hidden cost of aging in place is in-home care providers. "Many Americans are surprised to learn that Medicare does not cover long-term care or assisted living," says Whitney Stidom, vice president of consumer enablement at eHealth, a site offering comparisons of Medicare Advantage and other health-insurance plans. "It is an out-of-pocket expense and the costs are significant."

"In-home care is the most underestimated and unanticipated cost," says Nina Pflumm Herndon, president of the Aging Life Care Association. "If 24-hour care is needed for an extended period of time, it can easily be the single greatest expense of a person's lifetime."

Long-term-care insurance could help, but only 3% of Americans over 50 have invested in coverage.

"Families continually misjudge how fast the need for care can expand," says Farr. "Annual costs can easily reach $150,000. At that point, aging in place goes from being the least expensive option to the most expensive."

Read: Caregiving has become so crazy expensive that it's financially devastating to most families

Making a proactive plan

"Aging in place is a decision, not a plan," says Pflumm. The more clearly the full range of potential costs are understood and planned for, the better decisions can be made that align with both preferences and resources.

"Staying at home can be the preferred choice, but it is not always the cheaper one," says Golden. "Home modifications and repairs, ongoing upkeep, paid help and in-home healthcare are not 'extra' costs - they are part of the real retirement budget."

Farr adds: "Confidence in being able to remain in your home as you age results from addressing these costs early in the process, instead of waiting until after they create a crisis."

That translates into building a financial cushion for home-related expenses and potential care needs separate from general emergency savings. It also means considering alternatives before making a final commitment - downsizing, relocating or moving into a retirement community - as part of a broader strategy that offers lower or more predictable costs.

None of this means aging in place is the wrong decision. For many, it's absolutely the right one. But it has the best chance of success when it's approached proactively, rather than reactively.

-Edd and Cynthia Staton

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

04-26-26 1052ET