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The aged population of the world is increasing by a large factor due to the availability of medical and other facilities. As the number grows rapidly, requirements of this segment of age (65+) are increasing rapidly as well as the percentage of aged persons living alone is also increasing with the same rate due to the inevitable socio-economic changes. This situation demands the solution of many problems like loneliness, chronic conditions, social interaction, transportation, day-to-day life and many more for independent living person. A large part of aged population may not be able to interact directly with new technologies. This sought some serious development towards the use of intelligent systems ie smart devices which helps the people with their inability to use the available as well future solutions. Ambient Assisted Living (AAL) is the answer to these problems. In this paper, issues related to AAL systems are studied. Study of challenges and limitations of this comparatively new field will help the designers to remove the barriers of AAL systems.