As we grow older, one of the biggest questions many of us face is: Should I stay in my current home or move somewhere new? Housing decisions are a major undertaking at any age, but as we get older, they can become even more complex and carry greater weight.
Of course, there’s no one-size-fits-all answer to this great debate. The decision to age in place or relocate depends on personal needs, finances, health, family support—and sometimes, just plain preference. But understanding the pros and cons of each path can help you or your loved ones make the choice that leads to the safest, happiest, and most comfortable retirement possible.
What Does “Aging in Place” Mean?
Put simply, aging in place means staying in your current home as you grow older, rather than relocating to a new residence. If this is something you desire, you’re not alone. According to a national survey by AARP, 75% of those age 50 and over want to remain in their home as they age.1
The appeal of aging in place isn’t surprising as it can come with significant benefits, with a major one being emotional comfort. Staying in the home you know and love, surrounded by neighbors you know and memories you cherish, can bring a deep sense of comfort at any age. Choosing to live in your own home can also help you retain your independence and ability to remain in control of your own environment and daily routine for as long as possible—something of great importance to many people as they age.
Beyond the emotional benefits, aging in place can also save money in the long run. Investing in your current home rather than moving into assisted living has the potential to be a major cost savings. Genworth’s Cost of Care Survey2 revealed the national average cost for assisted living is $5,900 a month, which can add up quickly.
While the benefits are clear, that’s not to say aging in place doesn’t come with its own set of challenges—the biggest being maintenance and accessibility. Nearly half of those 50 and older believe their current homes would need modifications to make them safe and accessible.1
Home modifications—from straightforward repairs to more involved renovations—can go a far way toward making your living space safer and more manageable as you age, but they can be costly. Home maintenance, particularly for larger homes, can become increasingly difficult to manage both physically and financially. In addition, there is potential for social isolation depending on your level of community involvement and proximity to loved ones.
Another important consideration? Ongoing care and assistance. Many older adults who choose to age in place eventually bring in support through in-home care services. Whether it’s help with daily tasks like meal prep, bathing, and medication reminders or skilled nursing care for more complex medical needs, in-home care can bridge the gap between total independence and full-time facility care. These services can be tailored to your unique needs and schedule, making it easier to stay safe and supported while living at home, but they also come with their own costs.
When Does Relocation Make Sense?
While aging in place is a popular notion, it doesn’t make sense for everyone. The alternative, relocation, comes with its own set of benefits and challenges. Relocating in retirement can mean moving to a smaller, more manageable home, moving closer to family, or choosing a senior-friendly community with built-in amenities and support systems. Some older adults opt for active adult communities, while others consider independent or assisted living options.
Opting to relocate to a newer, smaller, or simply more manageable home can improve your quality of life and increase the likelihood of staying independent longer—potentially avoiding or delaying the need to move to a care facility. Moving to an area closer to medical professionals, caregivers, or family members can also bring greater peace of mind as you age. Additionally, relocating to a community that offers more social interaction—from clubs to events to classes—can help keep you active and involved, lessening the likelihood of isolation or depression.
On the other hand, a potential downside of relocating is the emotional impact of leaving a longtime home, which can be understandably difficult for many. For some people, leaving the home and neighborhood that they love can be upsetting and disruptive. Whether or not you’re emotional over leaving your home and starting fresh in a new residence, there will be an adjustment period to account for as you familiarize yourself with new routines, neighbors, and surroundings—all of which can take time to get used to. Beyond the emotional impact and adjustment period, there are also costs to consider, including moving expenses and potentially higher housing costs or fees.
How to Decide
Ultimately, the decision of whether aging in place or relocation is right for you is a deeply personal one. We’ve discussed the pros and cons of each option, but when it comes to making a choice, you have to assess which pros and cons matter the most to you, considering your unique goals and circumstances.
Life is unpredictable but assessing your current health, desired lifestyle, and overall financial picture can help you make a decision that aligns best with your long-term goals. Here are a few questions to ask yourself as you weigh your options:
- Health Needs: Are you (or your loved one) experiencing mobility challenges or chronic conditions that require support? Taking these limitations into consideration is important when deciding whether you can remain in your home long-term or if moving to a new home or senior living facility makes more sense.
- Financial Picture: What’s your monthly budget, how much do you have in savings, and how do future expenses compare between staying and relocating? This can be a stressful subject, but understanding the full scope of your finances can help ensure the decision you make today won’t compromise your financial footing down the line. Working with a trusted financial professional is always a great place to start!
- Support System: Are family and friends nearby—or would relocating bring you closer to those who can help? Having the support of loved ones in close proximity can be critical to your wellbeing as you age. Being able to stay connected and have help, should you need it, can be a game-changer for both your mental and physical health.
- Long-term outlook: How might your needs change over the next 5, 10, or 15 years? It’s impossible to know what the future holds, but it is possible to take an educated guess at how your life may evolve as you age—and to know your own preferences when it comes to age-related changes. Going into a decision today with the future in mind can save you money and minimize stress down the line.
Whether you stay put or pack up, the best decision is the one that supports a safe, fulfilling, and independent lifestyle. But what if, after a thorough review of your finances, you find your desired living situation ultimately isn’t feasible? Again, you’re not alone. According to the National Poll on Healthy Aging, 47% of adults age 50 and older reported inflation has impacted them a great deal, and 53% felt stress about their personal finances.3 The good news is, a reverse mortgage could be an ideal solution.
How a Reverse Mortgage Can Help
Whether you decide to stay or go, a reverse mortgage can be a helpful tool. You might know that funds from a reverse mortgage can be used to support your decision to remain in your current home, but did you know they can also be used to purchase a new home?
A reverse mortgage allows older homeowners to tap into a portion of their home’s equity while deferring repayment of the loan. The loan doesn’t require monthly mortgage payments and is typically repaid when the borrower sells the home, moves out, or passes away. And like any mortgage, you must keep up with your property taxes, homeowners insurance, and home maintenance. The proceeds can be received as a lump sum, monthly payments, a line of credit, or a combination4 of these methods—giving you the flexibility to use the funds on your terms, in a way that best supports your lifestyle and financial goals.
We’ve covered some of the basics, like how the loan works and its advantages, but how exactly can a reverse mortgage support your stay or go decision?
- [STAY] Funding Aging in Place: If you’re planning to age in place, a reverse mortgage can help you do just that by providing access to funds that can be used for essential home modifications, property maintenance, or hiring in-home care. These updates, like widening doorways, installing walk-in tubs, or upgrading kitchens and bathrooms, can help make your home more comfortable and safer as you grow older. Plus, having extra cash flow can make it easier to manage everyday expenses and reduce financial stress during retirement.
- [GO] Financing a New Home: On the other hand, if your current home no longer meets your physical or emotional needs, a reverse mortgage can help you relocate! This is referred to as a “Reverse for Purchase.” Whether you’re looking to downsize, move closer to family, or find a home with single-story living and accessible features, this option allows you to purchase a new home without taking on monthly mortgage payments5 or compromising your financial stability.
Whatever you decide, it’s important to remember that you don’t have to make the decision alone. Talking it through with family members, financial advisors, and professionals who specialize in aging can help you feel more confident about your choice. And if a reverse mortgage sounds like the right move to support your decision, working with a respected lender like Longbridge Financial is the way to go. Our team will get to know you and take the time to understand your goals, so we can offer solutions that are tailored to your needs.
If you’re interested in learning more about how you can use the power of your home with a reverse mortgage to support your aging in place or relocation goals, contact our team! We’ve helped thousands of older homeowners put their home equity to work for them—and we’d love to help you, too.
