The aging in place checklist: 5 steps to ease the financial burden

The aging in place checklist: 5 steps to ease the financial burden

For the vast majority of older adults, the ideal retirement means staying right where they are. In fact, a 2024 AARP survey found that 75% of adults aged 50 and older wish to remain in their current homes as they age.

But this desire for comfort and familiarity often runs into a hard, financial reality. For many families, the prospect of funding in-home care, medical needs, and home renovations can feel like a financial burden.

A general aging-in-place checklist often focuses on grab bars and rugs. A financial checklist, however, is the most critical tool for determining if you or your loved ones can live at home safely and sustainably for the long term. To help you or your loved ones plan for retirement, Splitero covers five key financial considerations to make when preparing for aging in place.

1. Determine the true cost of home care

When planning for retirement, many budget for taxes, travel, and utilities. But the largest expense will likely be the future cost of in-home support. As Nina Pflumm Herndon, President of Aging Life Care Association and CEO of Sage Eldercare, puts it: “The biggest financial consideration you will want to be aware of is the cost and availability of in-home care should you require it.”

The baseline cost is already substantial. The 2024 Cost of Care Survey from CareScout shows the national median cost for a home health aide is approximately $6,483 per month. More importantly, this is not a static cost. An October 2025 report from Axios found that the price of in-home care surged 10% through 2025, far outpacing the 3% rise in prices overall. This spike is driven by what the report refers to as a severe labor shortage, combined with the surging demand of aging baby boomers.

But Herndon highlights that everyone’s situation is unique: “There really is no way to plan for all eventualities, but knowing what resources and average costs are in your area is a great place to start.”

While costs can change, it’s important to estimate when and for how long you may need in-home care, and coordinate with any family members who may contribute to your care. Brandon Renfro, CFP and Partner and Financial Advisor of Belonging Wealth Management, notes that this will be specific to each individual: “If you have loved ones that will be helping or involved with your care as you age in any way, it's a good idea to talk with them beforehand so that your wishes are well understood. You can estimate the costs of your preferred approach ahead of time by checking in with providers that offer the type and level of care you want. Costs will change over time, but this will give you a solid estimate to start from.”

2. Calculate the cost of aging-in-place home modifications

Your current home may not be designed for future mobility challenges. To remain safe and independent, you will almost certainly need to invest in modifications. These are essential for preventing falls and ensuring your home remains a safe place to age.

The costs for these home modifications vary widely. According to data from Fixr, a simple project like replacing all your doorknobs with lever-style handles might cost as little as $350. However, the national average for a more typical aging-in-place remodel (like a bathroom update with a walk-in shower and grab bars) is $9,500. More comprehensive home modifications for seniors, including widening hallways or installing a ramp, can cost up to $50,000 or more.

If you know you may need to pursue some home upgrades to make aging in place as comfortable as it can be, start planning by conducting a home audit using a home safety checklist. Herndon also recommends an in-home assessment by a professional: “Not only can they give you current recommendations, but tips on what you may need down the line as you age.” Professionals, such as Certified Aging-in-Place Specialists (CAPS), can help you determine your current and future needs.

3. Create a plan to address debt

Debt can also be a major headwind heading into retirement, and recent consumer credit data shows it’s still widespread. Experian data put the average total debt at $104,755 as of June 2025, including $92,619 for baby boomers and $38,460 for the Silent Generation.

AARP research found that nearly half (46%) of Americans ages 50+ carry over credit card debt from month to month. Among older adults who carry balances, 47% say they’ve used credit cards to cover basic living expenses like food, housing, utilities, or health care.

Eliminating all high-interest consumer debt may help your savings go farther in retirement. But what about your mortgage? Renfro notes that using savings to pay down your mortgage quicker may not be the right solution for everyone, but for those who don’t want to enter retirement with mortgage debt, the pros can outweigh the cons.

“[P]aying off a mortgage is a very common retiree goal even though drawing down savings to pay off a mortgage doesn't always make the most financial sense," he says. "However, the typical retiree finds a considerable amount of comfort in going into retirement without that debt, so it's often the route they choose. That can be ok, and is often the best choice even though it may not be financially optimal because of the stress or anxiety it alleviates.”

4. Inventory your assets and key information

Aging in place is typically funded from a mix of resources, so the goal is to build a clear snapshot of what you have and what each asset is best suited to cover. Your snapshot should show what you have, where it lives, who owns it, how quickly you can access it, and any restrictions or tax considerations.

Start by listing:

• Cash and near-cash: checking, savings, money market, CDs
• Investments: brokerage accounts and other taxable investments
• Retirement accounts: 401(k), IRA, Roth accounts, pensions
• Income sources: Social Security (and timing strategy), annuities (if applicable), part-time income (and when each payment arrives monthly)
• Insurance and benefits: long-term care coverage (if any), veterans benefits, HSA funds, and local/state programs that may offset costs (include key terms like benefit amounts, eligibility triggers, and how to file a claim)
• Other assets: home equity, valuable personal property, other real estate

As you list each item, add two quick notes: (1) how quickly it can be used for expenses, and (2) any restrictions or tax considerations that could affect how much is actually available. Finally, note who owns each account, the named beneficiaries, and where statements or logins are stored, so family members or trusted helpers aren’t scrambling to locate information during a health event.

Once you know what you do have, you’ll be able to identify risks and gaps, and then move to the next step: pressure-testing whether your retirement funds can sustain the plan long-term.

5. Stress-test your retirement funds

Your retirement savings (like your 401(k) or IRA) are the primary engine that will fund your aging-in-place plan, but many people reach their 50s with less of a cushion than they expected. In fact, AARP research from 2024 found that 20% of non-retired adults aged 50 and above have no retirement savings at all.

It’s critical to run the numbers now and understand what your savings can (and can’t) reliably cover once in-home care and home updates are factored in. Quantify both your assets and expenses to calculate how much room you have in your budget and what may need to be adjusted.

You can also work with a financial advisor to stress-test your portfolio. Ask them to run projections that include your new, specific aging-in-place cost estimates. The classic 4% rule may not be flexible enough; you may need a more dynamic strategy that allows for lump-sum withdrawals for renovations or adjustments to cover care costs later in life.

How home equity can support retirement planning

Home equity can play a meaningful role in an aging-in-place plan by adding to your cash flow, funding home modifications, or helping you pay down high-interest debt, but it’s important to choose the right tool for the job.

If you’re considering how to best leverage your home equity, there are a few traditional and non-traditional ways:

• Home equity line of credit (HELOC): A flexible credit line with defined draw and repayment periods, typically at a variable interest rate.
• Home equity loan: A fixed lump-sum loan secured by your home, repaid in equal monthly installments over a set term (typically at a fixed interest rate).
• Cash-out refinance: A replacement mortgage that’s larger than your current loan balance, allowing you to take the difference in cash at closing.
• Reverse mortgage: A mortgage for homeowners 62+ that converts a portion of home equity into available funds (paid as a lump sum, monthly payments, or a line of credit) while you remain in the home.
• Home equity investment (HEI): A lump-sum of cash provided in exchange for a contractually defined share of your home’s future value, which you can repurchase anytime within a defined term.

While home equity can be used strategically to fill specific gaps, it’s not a substitute for an overall retirement plan.

Your home, your future

This financial checklist for aging in place is your first step. By addressing these five points today, you can take control of your finances, ease the potential financial burden, and turn the home you love into a place of security and independence for years to come.

“My best advice would be to start planning early,” Herndon notes. “The earlier you start planning, the more likely it is that your wishes will not only be honored but that you will also have enough time before a crisis hits. My other recommendation is to reach out to a trusted expert.”

Splitero built this checklist to help you think through your retirement plan, but it’s not a replacement for professional financial, tax, or legal advice. For recommendations based on your specific needs, talk with a financial advisor or other qualified professional.

This story was produced by Splitero and reviewed and distributed by Stacker.