Retiring at home: how you can plan for ‘aging in place’

Like many Canadians, you may hope 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 help you get started on building an aging-in-place plan. 

Aging in place means staying in your own home for as long as you want as you grow older. According to the annual “Ageing in Canada Survey” released by the National Institute on Ageing (NIA), 81% of Canadians said they want to remain at home, but only 38% have taken steps to prepare. 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.

It’s not an easy question to answer. A recent Manulife study found that while 52% of working Canadians said they plan to move to reduce expenses and 32% plan to downsize, only 8% of retirees actually did so. 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 neighbourhood provides the services, facilities, and community you’ll need, such as activities, healthcare, home maintenance support, and public transit.
• Your 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? 

Your home may have been ideal for raising a family, but it may not fit your needs later in life. The NIA study reports that only 49% of Canadians consider their home to be fully suitable for aging in place. 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 and easy-to-reach cupboards and shelves

The costs for upgrades vary widely, and only 18% of Canadians have money set aside for these modifications, making early budgeting essential. Once you identify what your home needs, you can begin estimating and planning. Consider:

• Setting aside money every month specifically for these upgrades and consider adding a “home readiness” line to your retirement budget.
• Thinking about recurring home maintenance services you’ll eventually need, such as lawn care, snow removal, and housekeeping.
• Planning to spread upgrades over a few years to make costs more manageable.
• Prioritizing 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. 

If you’re 65 or older, it’s worth exploring tax credits for seniors, such as the federal Home Accessibility Tax Credit (HATC). This nonrefundable tax credit can provide up to $3,000 per year for renovations that make your home safer and more accessible.

Some provinces also offer seniors similar tax 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. 

Successful aging in place isn’t only about your home. The NIA study shows that 51% of older Canadians living alone are at high risk of isolation. Now may be a good time to strengthen your community ties.

Consider looking into community centres, 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.

Once you decide that aging in place is for you and have mapped out your needs, consider speaking with an advisor 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.