Most Americans Prefer Aging at Home, Lack Financial Plans

A significant majority of Americans, 73%, express a strong preference for receiving in-home care should a health event necessitate it, according to Northwestern Mutual’s 2026 Planning & Progress Study. This desire to age in place is particularly pronounced among older generations, with 83% of Baby Boomers and 78% of Generation X favoring in-home care. In contrast, 67% of Millennials and 61% of Generation Z share this preference, indicating a widespread aspiration to remain in familiar surroundings during their later years. Laura Swafford, an associate private wealth advisor at Sozo Private Wealth, a Northwestern Mutual company, emphasizes that the primary opportunity for financial advisors lies in helping individuals translate this goal into a financial reality through comprehensive planning. She advises homeowners to plan ahead holistically to achieve this objective.

The traditional approach to aging often involved downsizing the family home to fund care expenses or reduce maintenance burdens. However, current financial and market conditions are prompting more individuals to opt for staying in their current homes, not solely for sentimental reasons. Douglas Ornstein, director of wealth management at TIAA, points to high interest rates as a major deterrent to selling homes with low fixed mortgages or fully paid-off properties, as doing so could negatively impact many people's finances. Furthermore, the limited inventory in many desirable housing markets makes the process of moving more expensive and complex than in previous years.

Beyond financial considerations, the emotional and social benefits of remaining in a familiar community with established social connections are recognized as legitimate components of healthy aging. Research on longevity supports the idea that maintaining these connections contributes to well-being. This shift away from downsizing as a default financial strategy for aging necessitates a re-evaluation of how individuals and families plan for long-term care and housing needs. The study highlights a critical gap between the widespread desire to age at home and the actual financial preparedness to support this goal, suggesting a need for more robust financial planning and advisory services tailored to this evolving demographic trend.

The Northwestern Mutual 2026 Planning & Progress Study surveyed a broad spectrum of Americans to gauge their preferences and preparedness for future life events, including aging. The findings underscore a societal trend where the comfort and familiarity of home are prioritized over the financial and logistical implications of relocation. This preference for aging in place, coupled with the current economic climate characterized by elevated interest rates and housing market constraints, creates a complex planning challenge. Advisors and individuals alike must navigate these factors to ensure that the aspiration of aging at home can be met without compromising financial security or overall well-being. The study's data suggests that proactive and comprehensive financial planning is essential to bridge the gap between the desire for in-home aging and the financial capacity to sustain it.