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Mapping out your financial future can be daunting, especially if you only have a vague sense of what you want to accomplish.

It can be useful to consider financial milestones to help you chart your journey from college graduation through retirement. Here’s a look at some common savings goals by age to help you orient yourself and build a plan.

Savings Goals for Your 20s

In your 20s, people are often just out of school, starting a career, and getting their life in order. As if that weren’t enough, they may face challenges like student loan debt or credit debt. Now is the time to set financial goals, consider an investment strategy, and start building healthy financial habits.

Paying Off High Interest Debt

If you have any high-interest debt — typically debts close to 8% or more — you might focus on paying it off. High-interest payments can cost you a lot over the life of a loan.

Credit cards, which often allow minimum payments that are much less than the total balance due, can be particularly costly as interest on the balance accrues. The more money going toward high-interest debt, the less you can focus on your savings goals.

Building Emergency Savings

At this age, people are often just getting on their own feet and might not have a lot of extra cash to stock away. Establishing a rainy day fund can be a useful savings goal. Generally, emergency funds contain at least three to six months’ worth of living expenses.

This fund can help cover emergencies like unexpectedly needing to replace a car transmission, a trip to urgent care, or losing your income. Since you never know when you’ll need to access your emergency fund, consider saving it in an easily accessible vehicle, such as a high-yield savings account.

Putting your money into interest-bearing accounts can help your money grow exponentially over time through the power of compound interest. Compound interest allows you to earn interest on the interest you earn as well as the principal, so higher interest rates can translate into higher savings over time.

Recommended: Planning your emergency fund? Our emergency fund calculator can assist you in setting the right target.

Saving for Retirement

The earlier you start investing for retirement, the longer you can take advantage of the returns you may earn on your investments.

Compound returns refers to the gains investors may see on both their initial investments and any profits they may generate, assuming they’re reinvested. Unlike compound interest, the rate of return on investments can vary significantly depending on market performance, and investors may experience losses on their initial principal, as well. Over the long-term, however, a well-diversified portfolio has the potential to see substantial growth, and this is true of investments in retirement plans, as well.

Consider taking advantage of any retirement accounts your employers offer, such as a 401(k). If your employer doesn’t offer a retirement plan, there are other options, such as setting up an individual retirement account (IRA), where you can save for retirement in a tax-advantaged way on your own.

Savings Goals for Your 30s

In your 30s, people are often more settled into a career path and may be thinking about other goals, such as purchasing a house or having kids.

More Saving for Retirement

As your income grows and retirement gets a little bit closer, consider increasing the amount you’re setting aside for retirement. If your employer offers a match to your 401(k) contributions, taking advantage of the match can be a wise move, since this is essentially free money.

Buying a Home

If you’re thinking about buying a home, you’ll want to focus on saving for a down payment. The amount you will need to save will depend on housing prices in the area where you’re looking to buy. A larger down payment can make it easier to secure a mortgage, and can also mean that you pay less interest over the life of the loan.

Also, lenders may require borrowers to have mortgage insurance if they’re making a down payment smaller than 20%, which is an added expense to the home-buying process.

Setting up College Funds

If you have children, another consideration is saving for their college education. One way you can do this is to open a 529 college savings plan that helps you save for your child’s tuition and other education-related expenses. Just be sure not to neglect other long-term goals, such as retirement, while saving for your child’s college education.

Savings Goals for Your 40s

As you enter your forties, you are likely entering your highest earning years. If you have your high-interest debts behind you, you can devote your attention to building your net worth.

Keeping an Eye on Your Emergency Fund

The amount of money you needed to cover six months’ worth of expenses in your 20s is likely far less than what you need now, especially if you have a mortgage to pay and children to support. You’ll want to make sure that your emergency fund grows with you.

Protecting Your Assets

Now that you may have a more substantial income and own some valuable things, such as a home and a car, you’ll want to make sure you protect those assets with adequate insurance. Home and auto insurance protect you in the event that something happens to your house or your car.

You may also want to consider getting life insurance if you haven’t already. This can provide a cash cushion to help your family replace your income or cover other expenses should you die. The younger you are when you purchase life insurance, generally the less expensive it will be.

Savings Goals for Your 50s

In your 50s, you’re likely still in your top earning years. You may still be paying off your mortgage, and your kids may now be preparing for college or out of the house.

Taking a Closer Look at Retirement Savings

As retirement age approaches, you’ll want to continue contributing as much as you can to your retirement account. When you turn 50, you are eligible to make catch-up contributions to your 401(k) and IRAs.

These contributions provide an opportunity to boost your retirement savings if you haven’t been able to save as much as you hoped up to this point. Even if you have been meeting your savings goals, the contributions allow you to throw some weight behind your savings and take full advantage of tax-advantaged accounts in the decade before you may retire.

Continuing to Pay Off a Mortgage

If you think your monthly mortgage payments may be too high to manage on a fixed income, you might consider paying off or refinancing your mortgage before you retire.

Goals for Your 60s

As you enter your 60s, you may be nearing your retirement. However, when it comes to saving, you don’t have to slow down. As long as you are earning income, you might want to keep funding your retirement accounts.

Thinking Long-Term

Now is a good time to assess how much you have saved for retirement and perhaps adjust what you are contributing (based on how much you’ve already put aside and how much you can afford). At the same time, you may want to plan out a retirement income strategy to determine when you’ll start withdrawing funds and how much you’ll take each month or year. You’ll also want to decide when to take Social Security retirement benefits. Delaying benefits until age 70 could increase the monthly payments you receive.

The Takeaway

Everyone’s personal timeline is different. The milestones you hit and when you hit them may vary depending on your personal situation. For example, someone graduating from college with $50,000 in student loan debt is at a very different starting point than someone who graduates with no debt. And while someone might be able to buy a house in their early 30s, others may live in a more expensive area and need more time to save.

No matter your starting point and situation, a simple way to manage your finances at any age is to open a checking and savings account where you can spend, save, and earn all in one product.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

What primary savings goal should I focus on in my 20s?

The top priority in your 20s is building a solid financial foundation. This may mean creating a plan to pay off high-interest debt, establishing an emergency fund that can cover three to six months of living expenses if a financial emergency arises, and starting to save for retirement.

What are the benefits of starting to save for retirement early?

Starting to save for retirement early allows you to take full advantage of compound returns. While all investments are subject to the risk of loss, compound returns may lead to substantial growth over the long term. Even small contributions can grow significantly over decades, making it easier to meet your retirement goals.

Besides retirement, what other major savings goals should I consider?

Beyond retirement, important financial goals include building an emergency fund to cover unexpected expenses, saving for a down payment on a home, and setting aside funds for children’s college education. It’s also wise to regularly review insurance coverage to help protect your assets.

What should I consider when planning my retirement income strategy?

The first step in planning your retirement income strategy is to assess how much you have saved. You may need to adjust your contributions to your retirement accounts or other investments to help you reach your goals. You should also decide when you want to start withdrawing money from your accounts, along with when you want to start taking Social Security benefits.

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Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

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Whether you’re relocating down the block or across the country, a lot of work and planning goes into moving. For current homeowners, there may be more logistics when they’re simultaneously buying and selling houses.

If you’re figuring out how to sell and buy a house at the same time, there are some options to choose from based on your personal budget, situation, and tolerance for risk.

Although this situation can be complex, it is not uncommon. In fact, 61% of home buyers owned their previous residence.

To help you manage this juggling act, this guide will go over potential challenges and outline some alternative options and tips to close on both deals.

Evaluating the Local Housing Market

Taking stock of the local housing market can help inform how you sell and buy a house at the same time. Not only does the market influence home prices, it can also impact how long it takes to close on a sale or purchase.

You may be faced with a housing market that favors buyers over sellers or vice versa. Researching your local housing market ahead of time can help guide your efforts in finding a new house.

When It’s a Buyer’s Market

A buyer’s market has more houses for sale than people actively looking to purchase a home. Generally, finding a new house in areas with a higher concentration of sellers can be easier than selling. At the same time, an accurate listing price and contingencies can factor into the equation.

Since there is less competition in the market, buyers can consider requesting an extended closing to allow time to sell their own house or include other contingencies in their offer. For instance, a home sale contingency can be included in a contract to coordinate a purchase with the sale of the buyer’s house.

A home sale contingency asks for the patience of a seller depending on their situation. Complications may arise in the event that all parties involved are simultaneously buying and selling homes.

On the flip side, sellers in a buyer’s market could benefit from setting a competitive asking price and getting ahead of inspection by buttoning up any lingering home maintenance issues.

When It’s a Seller’s Market

If there are more buyers in the housing market than there are homes for sale, it’s considered a seller’s market. Often, selling a house where there’s a high percentage of homebuyers takes less time and can fetch a higher price.

Sellers may be able to take advantage of the housing scarcity and go with a more ambitious asking price. If this pays off for you, the extra cash could be especially useful if you are shopping for houses in a seller’s market yourself. Making a competitive offer may be helpful if you are trying to beat out other bids and quickly secure a home.

It’s also not uncommon for houses to receive multiple offers in a seller’s market. If this is the case, sellers may have more success negotiating favorable terms that suit their sell and buy situation.

For example, a rent-back agreement allows sellers to lease their former house from the new owners for a set period of time. This gives them more time to find their new home, but may not be an acceptable condition for every prospective buyer.

Recommended: How Does Housing Inventory Affect Buyers & Sellers?

Calculating Home Equity

Getting your finances in order to buy and sell a home isn’t just about counting savings and building budgets. Home equity is another important consideration.

To calculate home equity, subtract the money owed on your mortgage loan from the current market value of your house. For example, if your home is worth $250,000 and you still owe $150,000 on your mortgage loan, you have $100,000 of equity in your home.

Depending on your financial situation, home equity may be necessary to buy a new home. Keep in mind that equity does not become available until the closing is complete. Typically, lenders will limit borrowers to 80% to 90% of their available equity, depending on factors such as credit history and income, among others.

Unless you’re selling a home shortly after buying it, the current market value of a home could likely differ from the initial purchase price. These changes could either increase or decrease your home equity.

Generally speaking, the average home sale price in the United States increases year-to-year, barring notable exceptions like the 2008 financial crisis and subsequent recession. However, these trends don’t account for regional housing booms and busts.

Getting an official valuation from a real estate appraiser, which typically costs between $300 and $400, is one way to get a more accurate idea of your home equity and a feasible sale price. Researching comparable homes that recently sold in your community can give you a ballpark estimate, too.

💡 Quick Tip: You can use money you get with a cash-out refi for any purpose, including home renovations, consolidating other high-interest debts, funding a child’s education, or buying another property.

Prequalification vs Preapproval

Being aware of your personal financial situation is useful for a variety of reasons, especially when buying a house. But if you’re among the majority of buyers who finance their home purchase, your mortgage lender will consider factors beyond your own number crunching and goals when deciding on their loan offer.

For many prospective homebuyers, prequalifying is the first step to getting an estimate of how large a home loan they would likely qualify for. Lenders generally evaluate factors like a buyer’s debt, assets, and income, which may take just a matter of days.

Becoming prequalified does not lock buyers into a set mortgage rate. Rather, it gives them a more accurate picture of their financing options and what houses are in their price range. Before making an offer, it is generally advisable that buyers get prequalified, which they can demonstrate with a letter from their lender. This can signal to the sellers that they are a serious buyer.

To ultimately obtain a mortgage loan, buyers still need to go through preapproval. In this process, lenders perform a more thorough credit and financial background check to arrive at a specific preapproved loan amount.

Sellers may consider offers from preapproved buyers more favorably than those with just prequalification since there is less concern about a rejected mortgage application pending a deal. Preapproval may also get you to the closing table faster, which can be a big plus if you’re in a competitive market.

Selling Before Buying

Whether by intention or pure circumstance, you could find yourself a choice of selling your house before buying your next home.

Selling first can potentially be beneficial for qualifying for a mortgage loan. After the sale closes, you may be able to use that money to finance a down payment on a new home, as well as having a lower debt-to-income ratio.

Yet, selling before buying may create complications like finding a place to stay until you purchase a new home. If the new buyers are not willing or able to do a rent-back agreement, you may end up having to find temporary housing until you buy a new home.

Apartments and rental properties may require signing up for a lease of as much as 12 months. For prospective homebuyers, a lengthy rental commitment with penalties for leaving early may be costly. Instead, finding a month-to-month rental option can grant more flexibility and sync up with a storage unit lease, if needed.

Buying Before Selling

When you find your dream home, you may want to pull the trigger and make an offer right away. But what does that mean if your house hasn’t sold yet?

If your budget allows you to buy a home with cash vs. a mortgage, you may be in a position to move forward with the offer.

For some, making a down payment or home purchase before selling with savings alone is not feasible. In other cases, your debt-to-income ratio and credit may prevent you from getting a feasible.

There are several options available if this is not the case. A home equity line of credit (HELOC) can let prospective buyers borrow against the equity of their current home. A buyer’s credit and existing home equity are taken into account when a lender is evaluating whether they qualify for a HELOC.

If approved, buyers can use the HELOC to access money for a down payment and then pay it off when their house sells. Take note of the repayment terms and interest rate on the HELOC, as these can vary from lender to lender.

Taking out a bridge loan is another possibility. These short-term loans are usually structured to cover a down payment and become due after several months. Bridge loans generally have high interest rates and may require an origination fee. Sellers who cannot unload their house in time may need to request an extension or begin repaying the loan while still paying two mortgages.

Choosing a Real Estate Agent

A savvy real estate agent can help reduce the stress and uncertainty of selling and buying a house at the same time. Their expertise can come in handy for setting a realistic listing price, scheduling showings, and staging a home.

If you had a positive experience with the agent you worked with to buy your home, their familiarity with your property could help expedite the process and give you peace of mind in case you have to move out of the area before selling.

There are benefits to using the same agent for buying and selling when geography allows. For instance, they can simplify the lines of communication and more easily coordinate the closing of both homes with your ideal timeline.

Sometimes it may not be possible to use the same agent. The obvious case is when you’re moving a significant distance to a new area.

The need to use two real estate agents could arise if you’ve chosen a reputable agent who exclusively works with buyers or sellers alone. If you decide to hire such an agent, they may be able to recommend a trusted colleague in their agency to handle your other deal.

Timing Your Closing Dates

There is a lot to consider when selling and buying a house at the same time. The timing of both dates can impact what your financing options are, whether you have to find temporary housing, and it you’ll need to store or move your belongings.

Setting a closing date is part of the negotiating process for any real estate deal, and coordinating closings for the same date can streamline the process.

Still, closings can be delayed due to reasons outside your control. Having a back-up plan, such as a rent-back agreement, can keep you in your home while you find a new house. Putting additional contingencies in a contract can help with rescheduling closings as needed or even walking away without much financial loss.

The Takeaway

Buying and selling houses at the same time may not always be easy, but it is doable. It’s ideal to have both closings the same day. But if that’s not possible, there are still ways you can accommodate either buying a house before you’ve sold your old home, or selling your house before you have a new place to live. Either way can work, but if you sell before you buy, it may be easier to get a mortgage on your new home.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

Is it better to sell your house first before buying another?

If you can, it may be more practical to sell your house before you buy the next one. That way, you can use the funds from the sale to finance your new house’s down payment, and you avoid the possibility that you might have to pay two mortgages at once. However, if there’s a gap between when you sell your old house and when you close on your new one, you’ll have to figure out temporary lodgings.

What happens to your mortgage when you sell your house and buy another?

When you sell your house, if there’s still a mortgage outstanding on it, you will have to pay it off at the closing. Typically, your mortgage lender will be paid with some of the money you get for the sale of your house. That’s the usual process whether or not you are buying another house.

What is the minimum credit score for a bridge loan?

Qualifications for bridge loans can be demanding. The minimum credit score for a bridge loan can vary by lender, but typically it will be 700 or or more.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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SOHL-Q225-178

Thanks to home prices, which continued to rise in 2024, VA loan limits got a boost in 2025.

For most U.S. counties, the baseline limit for VA loans is now $806,500, compared to $766,550 in 2024. And loan limits for single-family homes in counties with higher home costs also increased — from a maximum (or “ceiling”) of $1,149,825 in 2024 to $1,209,750 in 2025.

What could higher loan limits mean for you? If you’re a veteran considering a home loan backed by the U.S. Department of Veterans Affairs, read on for a breakdown of what you can expect if you purchase a home this year.

What Is the VA Loan Limit?

To be clear: The VA doesn’t limit how much an eligible veteran, service member, or survivor using a VA loan benefit can borrow to finance a home. There are only limits on how much of the loan amount the VA will guarantee if the borrower is unable to repay the mortgage. And that limit can vary based on the status of the borrower’s VA entitlement.

Most borrowers who apply for a VA loan have something called “full entitlement.” This means that if the borrower defaults, the VA will guarantee — or repay the lender — up to 25% of whatever loan amount the lender approved based on its own criteria. If you’re a first-time homebuyer, or if you’ve paid off a past VA loan, you can expect to have a full entitlement.

But if a borrower has what the VA refers to as a “remaining entitlement” (they have a VA loan they’re still paying back), the VA will limit its guarantee based on the Federal Housing Finance Agency (FHFA) loan limit in the county where the home is being purchased.

Instead of paying the lender up to 25% of the full loan amount if the borrower defaults, the VA will limit its guarantee to up to 25% of the applicable FHFA loan limit minus the amount of the entitlement the borrower already used. Borrowers can still get a VA loan using their remaining entitlement, but they may have to make a down payment to get that loan if the loan amount is more than $144,000.

To check your VA entitlement status, you can request a certificate of eligibility (COE) through your lender, online, or by mail.

💡 Quick Tip: Buying a home shouldn’t be aggravating. SoFi’s online mortgage application is quick and simple, with dedicated Mortgage Loan Officers to guide you from start to finish.

When Do VA Loan Limits Apply?

You may wonder when VA loan limits apply and, more specifically, how annual changes to loan limits are calculated. The VA bases its loan guarantee limits on the conforming loan limits (CLL) the FHFA sets for conventional home mortgage loans that are eligible for purchase by Fannie Mae and Freddie Mac.

By law, the FHFA must adjust these limits annually to reflect changes to home prices in the U.S. Between the third quarter of 2023 and the third quarter of 2024, home prices increased, on average, by 5.21%, based on the FHFA House Price Index. So the 2025 baseline CLL increased by that percentage.

But your county’s loan limit could be considerably higher, depending on average home prices in your area.

These differences are, in part, due to the variability of cost of living by state.

2025 VA Loan Limit Calculator Table

Higher home prices across the U.S. brought the FHFA’s baseline limit (and, therefore, the VA’s baseline limit for 2025) to $806,500 for a single-family home in most counties.

But in counties where 115% of the median home value is higher than the baseline CLL, the limit has been increased by a percentage that reflects those higher prices. There is a ceiling, or cap, however, of 150%.

Here’s what that looks like for a single-family home in 2025 vs. 2024.

VA Loan Limits in 2025 and 2024

If you’re buying in Alaska, Hawaii, Guam, or the U.S. Virgin Islands, special statutory provisions dictate the loan limit, which in 2025 is $1,209,750 for a single-family home.

VA Loan Limit Example

Here’s a hypothetical example of how a borrower could be affected by the county loan limit on a VA loan.

Let’s say Joe, a Navy veteran, wants to buy a home in San Diego County, even though he knows the cost of living in California is higher than average. Joe manages to find a $700,000 single-family home and he wants to buy with a VA loan, but he still owes $100,000 on another VA loan.

The 2025 limit in San Diego County is $1,077,550. Since the VA will guarantee up to a quarter of that amount, Joe has a maximum entitlement of $269,387.

$1,077,550 x .25 = $269,387

But Joe has to subtract the amount of his entitlement he’s already used, which leaves him with $169,387.

So, the VA would guarantee up to $169,387 of Joe’s loan.

Since most lenders want at least 25% of a borrower’s loan amount to be covered by the VA entitlement and/or a down payment, Joe might have to make a $5,613 down payment to get a VA loan for this home.

$700,000 x .25 = $175,000

$175,000 – $169,387 = $5,613

How Does My County Loan Limit Affect Me?

Just like Joe in the example above, if you’re using a remaining entitlement and your loan amount is over $144,000, your county loan limit could determine whether you’ll have to make a down payment to buy the home you want.

It doesn’t mean you can’t get the loan. If you have enough to make the down payment required by your lender, you may even qualify for a VA-backed loan that’s more than your county loan limit.

It’s important to note that though the example provided here is for a home purchase, the same entitlement limits apply if you’re considering refinancing your VA loan. In that case, your county limit could affect how much you’ll be asked to pay in closing costs.

💡 Quick Tip: Apply for a VA loan and borrow up to $1.5 million with a fixed- or adjustable-rate mortgage. The flexibility extends to the down payment, too — qualified VA homebuyers don’t even need one!^{†^}

How to Apply for a VA Home Loan

Most VA loans are “VA-backed” loans, which means they’re issued by approved private lenders. The VA’s guarantee that it will help repay the lender if a borrower defaults is an incentive for lenders to offer these loans with attractive terms.

Still, it can be a good idea to shop around for the loan that best meets your family needs, and compare interest rates, fees, customer service, and any additional benefits various lenders might be offering.

You also may want to compare the terms of your top VA loan offer to what you can get with different types of mortgage loans, including a conventional loan.

Of course, no matter which type of loan you ultimately choose, you’ll still have to qualify for a mortgage with a lender.

There isn’t a requisite minimum credit score for VA loans. Instead, the VA asks lenders to review the borrower’s “entire loan profile,” which could include your credit history, DTI ratio, employment history, and assets. Individual lenders also may have their own approval criteria you should be aware of when you’re ready to apply for a VA loan.

Pros and Cons of VA Loan Limits

The VA loan limit is just one of several factors you may want to consider if you’re thinking about using a VA loan for a home purchase or a mortgage refinance. Like any other mortgage option, VA loans have their pros and cons. Here are a few to keep in mind:

VA Loan Pros

The upsides of VA loans can include:

•   Interest rates may be lower with a VA loan than with a conventional loan.

•   You may not need to make a down payment or pay mortgage insurance.

•   Though non-VA jumbo loans may require a higher down payment, this isn’t necessarily true with a VA jumbo loan.

•   If you decide to sell your home, you can allow the buyer to assume (or take over) your existing mortgage.

VA Loan Cons

Now, for the downsides:

•   VA purchase loans are only for primary homes; you can’t use the loan to buy a vacation home or to invest in a home that isn’t your main residence.

•   The VA charges a one-time “funding fee” that’s designed to cover foreclosure costs when homebuyers default on a loan. Currently, the fee ranges from 1.25% to 3.3% of the loan.

•   The home you hope to buy must be evaluated by a VA-approved appraiser to ensure it meets the VA’s minimum property standards. If the home you want is too rundown, it may not pass this appraisal.

Recommended: 2023 Home Loan Help Center

The Takeaway

VA loan limits are based on home prices in the U.S., and they’re adjusted annually to reflect price increases.

If you’re a first-homebuyer or you’ve paid off a past VA loan, you shouldn’t have to worry about VA loan limits. But if you want to buy a home and you already have a VA loan, the loan limit for your county could determine whether you’ll have to make a down payment to qualify for the amount you hope to borrow.

SoFi offers VA loans with competitive interest rates, no private mortgage insurance, and down payments as low as 0%. Eligible service members, veterans, and survivors may use the benefit multiple times.

Our Mortgage Loan Officers are ready to guide you through the process step by step.

FAQ

Will VA home loan limits increase in 2025?

VA home loan limits increased significantly in 2025. The baseline limit for VA loans is now $806,500, compared to $766,550 in 2024.

What is the conforming loan limit for 2025?

The national baseline conforming loan limit for 2025 is $806,500, although some counties have higher limits. The VA loan limit for a county is the same as its conforming loan limit.

What is the DTI limit for a VA loan in 2025?

The Department of Veterans Affairs hasn’t set a hard-and-fast limit on the debt-to-income ratio it requires for its loans. But generally, lenders allow a 41% maximum for a VA loan.

Photo credit: iStock/Thai Liang Lim

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SOHL-Q225-164

Did you know that you can start taking advantage of what are known as senior discounts well before retirement age? In fact, you can often save money when you are as young as 55 and in some cases even 50.

In fact, many “senior” discounts can be accessed through membership in the AARP (formerly the American Association of Retired Persons). The AARP is dedicated to the needs of the 50+ population, but anyone 18 or older can become a member (membership runs $20 a year, though discounts may be offered).

And the sooner you start working those senior discounts, the more you could potentially put into retirement savings, which could lead to a more significant nest egg when you really do reach retirement age.

Read on to learn about some smart ways you might start saving as a senior or soon-to-be senior.

Travel Senior Discounts

Many major airlines, hotel chains, cruise lines, and rental car companies offer senior discounts, sometimes as much as 30% off, which can help bring down vacation costs.

These deals aren’t always obvious, however. You may have to track them down on company websites or simply call directly and ask.

Here are some different ways you may be able to score senior deals on travel.

💡 Quick Tip: Typically, checking accounts don’t earn interest. However, some accounts do, and online banks are more likely than brick-and-mortar banks to offer you the best rates.

Airline Senior Discounts

You may not always find a code or a drop-down menu when booking online, but you can often get good discounts on air travel if you call the airline directly.

Some airline discounts to look for:

•   Delta offers senior discounts in certain markets, but not online.

•   United Airlines may offer senior fares to selected travel destinations for customers who are 65 and older (when booking online or over the phone).

•   British Airways offers exclusive AARP Member offers, including up to $65 off.

Car Rentals

AARP membership can get you some significant discounts on car rentals and there are some companies that offer independent discounts. Some to look for:

•   Alamo provides deals through its Senior Circle program.

•   Avis gives AARP Members up to 35% off Avis base rates.

•   Budget offers AARP members up to 35% off, and sometimes also a free upgrade and other exclusive benefits.

•   Hertz offers travelers 50 and up to 20% off base rates, and they can also take advantage of additional program benefits.

Cruises

Cruise lines, such as Carnival and Celebrity Cruises, commonly offer discounts to those travelers that are 55 and older.

It’s best to call the cruise line before booking to see what is currently available, as some won’t advertise specific deals on their websites, yet may have special senior offers.

Another savvy savings tip is to wait to get the best deal available to you, and then ask to apply your senior discount on top.

Hotels

Senior discounts are available at many hotel chains, but are not always advertised. Again, many of the programs are aligned with AARP membership, but there are plenty of others that offer their own independent discount.

A few deals to keep an eye out for:

•   Cambria Suites offers up to 10% off to AARP members.

•   Travel Lodge gives guests aged 60 and older special savings off the best available room rate when booking online or over the phone (ask for the “senior rate”).

•   Choice Hotels gives those who are 60+, or who are AARP members, up to 10% off with advance reservations.

•   Motel 6 offers adults 60+ a discount of 5% off of their best available nightly rates at each of their 1,400+ locations across the United States and Canada.

•   Hilton Hotels & Resorts gives adults aged 65 and older up to 6% off their best available rates.

National Parks

For just $80, those aged 62 or over can get a lifetime America the Beautiful Pass, which covers entrance fees at Federal recreational sites, including national parks, throughout the U.S.

Applicants must provide documentation of age and United States citizenship or permanent residency.

Amtrak

If you like the idea of traveling by train, then you may want to look up the Amtrak senior discount — travelers 65 and older are eligible to receive a 10% discount on most Amtrak trains.

Retail Discounts for Seniors

As a senior, you can often save big with many retailers. Some stores provide a senior discount on a specific day, such as every Wednesday or the first Tuesday of the month.

One of the best (and best known) is Kohl’s, which typically offers 15% off every single Wednesday for those 60 and older. The money you save could help build your retirement savings.

According to The Senior List, other major retailers that may offer discounts to those 55+ include:

•   TJMaxx

•   Walgreens

•   Tanger Outlets

•   JOANN

•   Michael’s

Restaurant Deals for Seniors

This is probably one of the richest sources of discounts available to seniors.

Whether it’s on a certain day or during a specific block of time, many restaurants offer something, so it’s a good idea to ask around at your favorite places and to also check restaurant websites.

Many eateries also have senior menus that offer discounts to diners over a certain age.

Promotions vary according to location, but here are a few deals you may keep an eye out for.

•   Denny’s: a special discounted menu for people ages 55 and up; AARP members get a 15% discount.

•   McDonald’s: senior discounts at some locations.

•   IHOP: a 55-plus menu, which offers deals for seniors.

•   Outback Steakhouse: AARP cardholders can score 10% off.

•   Bubba Gump Shrimp Co: 10% off for AARP cardholders.

Senior Discounts on Groceries

Many major grocery stores offer senior discounts on certain days, which can be a great way to save money on food. Some local independent grocery stores will offer small discounts too, so it never hurts to ask your go-to market about senior deals.

Look for these commonly offered discounts:

•   Fred Meyer: 10% off on select items on the first Tuesday of every month for those 55 and older.

•   New Seasons: 10% off for seniors 65+ on Wednesdays on most items.

•   Hy-Vee: 5% off on Thursdays for seniors 55+ at participating locations.

💡 Quick Tip: If you’re creating a budget, try the 50/30/20 budget rule. Allocate 50% of your after-tax income to the “needs” of life, like living expenses and debt. Spend 30% on wants, and then save the remaining 20% towards saving for your long-term goals.

Senior Deals on Movie Tickets

Major movie chains often offer great discounts on tickets for seniors. Some deals are all day every day, while others require going on a specified day and/or block of time.

Regal, for instance, discounts the price of senior admission from $1 to $4 per ticket, depending on the specific movie, theater, and showtime.

Another example is Showcase Cinemas, which usually offers lower-priced tickets to adults 60 and over (as well as deals on popcorn and drinks) on Wednesdays.

Local, independent theaters also commonly offer discounted tickets to seniors, so it’s always worthwhile asking.

Senior Discounts at Drug Stores

Almost every pharmacy out there is interested in getting your business, and offers some sort of senior discount program.

Rite Aid, Costco, CVS, and Walgreens all commonly offer types of membership programs (and sometimes also special monthly discount days) for older adults with savings that can really add up.

It can also be wise to check with local, independent pharmacies for senior deals as well — they’re not always advertised.

Recommended: Ways to Cut Back on Spending

Senior Cell Phone Savings

T-Mobile, AT&T, and Verizon all typically offer cell phone plans with senior discounts. If you’re 55 or older, you can very likely get a good deal on a plan.

Some smaller carriers also provide special services and more ways to save. For instance, Consumer Cellular, which already offers affordable no-contract plans, has an established relationship with AARP, so there’s a discount on monthly service for any existing member.

The Takeaway

You might not even think to look for, let alone ask for, a “senior discount” if you’re under age 65. But if you’re 50 or older, you may be missing out on a great way to cut back on spending.

Senior discounts are offered by many retailers, movie theaters, airlines, rental cars, cell phone carriers, restaurants and more. Some are tied to AARP membership, while others are offered independently, with varying age limitations.

Whatever deal you can snag, senior discounts can allow you to enjoy special purchases and experiences without breaking your budget and/or save on everyday essentials, leaving you with more cash in the bank.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How to get a 20% discount for seniors?

To get a 20% senior discount, check with local stores, restaurants, and service providers for their senior discount policies. Many businesses offer discounts to customers over a certain age, typically 55 or 60. Always carry a valid ID to prove your age and ask about available discounts when making purchases.

How much is Amazon Prime for senior citizens?

Amazon Prime for senior citizens costs the same as for other customers (currently $139 per year or $14.99 per month). However, they do offer a Prime Access membership for those who receive government assistance, which includes seniors on programs like SNAP and Medicaid.

Is Costco free for seniors?

Costco membership is not free for seniors. The fee for a basic (Gold Star) membership is currently $65 a year, regardless of your age. However, Costco discounts on prescription drugs, hearing aids, gas, and general merchandise can make a membership worth it for seniors.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

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*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Bank Fee Sheet for details at sofi.com/legal/banking-fees/.
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SOBNK-Q225-090

The average retirement savings by age depends on people’s income, expenses, and even where they live (with some states having higher retirement savings rates than others). The older you are, the more likely you are to prioritize retirement savings.

How much have Americans saved for retirement? While nearly half (46%) of households have no retirement savings, those that do have an average of about $334,000 saved, according to the Federal Reserve Board’s 2022 Survey of Consumer Finance, which is the most recent data available.

If you look at the median amount Americans have saved in retirement accounts such as IRAs, 401(k) and 403(b) plans, pensions, and so forth, that number is lower: about $87,000 per household.

Average Retirement Savings By Age

Below is a breakdown of retirement savings by age group, ranging from people in their 20s to people in their 70s, according to the 2022 Survey of Consumer Finance.

Average Retirement Savings Before Age 35: $49,130

Most Americans in their 20s and early 30s haven’t reached their peak earning years, and many might be paying off student loans, and saving up to buy a house or have kids. Retirement isn’t always top of mind.

But the earlier people can figure out which retirement plan is right for them and commit to actually starting a retirement savings plan, the more they will benefit from compound growth over time.

Average Retirement Savings, Age 35 to 44: $141,520

With their careers and lives generally more established, many people are making more money at this age than they ever have. It can be tempting to spend more on lifestyle choices (e.g., vacations, cars, furniture). Many people also have mortgages, families, and other big-ticket expenses during this time in their lives.

But those who put that money towards retirement may be able to reach their retirement goal with greater confidence. Granted, it can be difficult to juggle competing priorities, but taking advantage of employer-provided retirement accounts, matching funds, and automatic transfers to savings can all help busy people make progress.

Recommended: How to Save for Retirement at 30

Average Retirement Savings, Age 45 to 54: $313,220

At this age, some Americans are on track to reach their retirement goals, while others are far off. There are still ways to catch up, such as cutting unnecessary expenses, moving to a smaller home, or putting any additional pay, income, or bonuses into retirement accounts.

In addition, many retirement accounts offer what’s known as a catch-up provision, which is a way to add more money to certain accounts, once you’re over age 50. Starting in 2025, there is also a new policy that allows people between 60 and 64 to save an extra amount in an employer-sponsored plan.

Average Retirement Savings, Age 55 to 64: $537,560

Although the goal for many is to retire at about age 65, many Americans have to keep working since they don’t have enough savings. In some cases, people plan on working at this stage of life anyway, although it’s not always easy to find work. Ideally, working in later years of life would be a choice and not a necessity.

Retirement contributions tend to increase as people age partly because they are earning more and partly because they are thinking about retirement more — and in some cases because other expenses are lower. For example: Your kids may be done with college, or you may have paid off your mortgage.

Average Retirement Savings, Age 65 to 74: $609,320

Many people in this age group have embarked on retirement, thanks to years of self-directed investing (although many retirees may have consulted a professional as well). This is a time when people need to evaluate the amount they have saved in light of how long they are likely to live — which is the most significant factor impacting retirees, in addition to the cost of living.

It may be possible to enjoy some years of travel, starting a business, helping raise grandchildren — or other adventures. Or it may be a time to adjust living expenses in order to make one’s savings last.

Target Retirement Savings by Age

Because the cost and standard of living varies so greatly, there aren’t clear dollar figure amounts that each age group should aim to have saved for retirement. But there are suggested guidelines, and numerous ways to save for retirement as well.

Retirement Savings Benchmarks

•   By age 30: It’s generally recommended that people save an amount equal to their annual salary by the time they reach age 30. That may not be a realistic goal for many people, but it can be a general guideline or goal to aspire to.

One way to achieve this is to save 10-15% of one’s gross income starting in one’s 20s. Some employers will match 401(k) contributions if employees save a certain amount each month, so it’s a good idea to contribute at least that much to take advantage of what is essentially free money.

•   By age 40: It’s recommended that investors have three to four times their annual salary saved by age 40.

•   By age 50: Investors are typically advised to have six times their salary saved by age 50.

•   By age 60: It’s recommended that investors have eight times their salary saved by age 60.

•   By age 67: Investors are typically advised to have ten times their salary saved by age 67, which is considered full retirement age for Social Security for many Americans.

For example, if a 67-year-old makes $75,000 per year, ideally they would aim to have $750,000 saved, more or less, at the point at which they actually retire and start to claim Social Security.

Is Anyone Saving Enough for Retirement?

Despite the above recommendations, most Americans don’t have nearly these amounts in their retirement accounts. As noted, a significant percentage of Americans don’t have any retirement savings at all — and that includes Americans who are near retirement age.

In a recent SoFi retirement survey of adults aged 18 and over, 59% had either no retirement savings or less than $49,000.

So, while some people are saving enough for retirement, many people aren’t. And relying on Social Security benefits isn’t likely to cover all of a retiree’s living expenses.

Social Security and Your Retirement

Social Security was designed to help people pay some of their expenses during retirement, but it was always assumed these benefits would be part of an individual’s larger income plan, which might include a pension and personal savings.

As a result, Social Security benefits are generally modest. As of January 2025, the estimated average Social Security payment for a retired worker was around $1,976 per month. But benefit amounts can be higher or lower, depending on your earning history, how old you are when you file, and other factors.

Perspectives on Social Security Vary Widely

In addition, people have different perspectives about Social Security. According to SoFi’s recent retirement survey, some adults think it will be their main source of income in retirement, while others see it as a supplement to other income sources. And some people aren’t counting on Social Security at all.

Perceptions of Social Security Perceptions in Retirement

•   41% Perceive SS as a supplementary source of income

•   31% Perceive SS as a their primary source of income

•   16% Aren’t relying on SS as a source of income

•   12% Aren’t sure how to perceive SS in their retirement plans

Source: SoFi Retirement Survey, April 2024

The fact that nearly a third of respondents believe Social Security could be their primary source of income reveals a lack of awareness of these benefits and how they work. And it points to a need for greater education around the need for personal savings and careful financial planning.

Strategies to Maximize Retirement Savings

It can be stressful to feel behind on saving for retirement, but it’s never too late to start.

There are several ways to save for retirement — but a good place to start, if you haven’t already, is by creating a budget to track expenses. This allows you to see where your money is going and identify categories of spending that could be reduced. It’s then possible to direct some of those savings to a retirement account, such as a traditional IRA, or a work-sponsored plan such as a 401(k) or 403(b).

Some retirement plans also have catch up options for those who start late — typically, individuals older than 50 can contribute extra funds to their retirement accounts.

No matter how much you put aside for retirement, or whether you contribute to a traditional IRA or a Roth IRA, a 401(k) or an after-tax investment account, a good strategy is to automate savings. With automated savings, the money is deducted from your paycheck or your bank account automatically — making it easy to forget that the money was ever in the account in the first place.

Recommended: Comparing the SIMPLE IRA vs. Traditional IRA

Retirement Account Options

Whether you’re employed full-time, working part-time, or you’re self-employed, there are many types of retirement account options available. Following is a selection of common retirement accounts, but there are others as well.

Bear in mind: Most retirement accounts offer different tax advantages, as well as strict rules about annual contribution limits, withdrawals and early withdrawals, loans, and required minimum distributions (RMDs). Be sure to understand the terms, to ensure a the plan you choose can help you reach your goals before funding a retirement account.

Individual Retirement Accounts, or IRAs

With an IRA, you open and fund a tax-advantaged IRA account yourself or for a custodian (e.g., a minor child). IRAs are for individuals, and are not offered by employers. That said, small businesses may offer a special type of IRA.

IRAs come in two flavors: traditional and Roth IRAs. When considering a Roth IRA vs traditional it’s important to understand the tax implications of each type of account. Traditional IRAs take tax-deferred contributions. This means your contributions are pre-tax, and can reduce your taxable income. You owe ordinary income tax on withdrawals.

Roth IRAs are considered after tax, because you deposit funds that have been taxed already. Qualified withdrawals are tax free.

Recommended: Roth IRA vs Traditional IRA: Key Differences

Employer-Sponsored Plans

A 401(k) plan is a tax-advantaged plan typically offered to the employees of a company. A 403(b) and 457(b) are similar, but offered by governments, schools, churches, or non-profit organizations that are tax exempt.

Traditional accounts allow employees to contribute pre-tax dollars, but withdrawals are taxed as income in retirement. Roth versions of these accounts (you may be able to set up a Roth 401(k) or Roth 403(b) account) allow after-tax contributions, and qualified tax-free withdrawals.

Self-Employed and Small Business Accounts

•   A Saving Incentive Match Plan for Employees, or SIMPLE IRA plan, is also a tax-deferred account, similar to a traditional IRA. But these accounts are designed for small businesses with 100 employees or less (including sole proprietors, and people who are self-employed).

As a result, the contribution limits for SIMPLE IRAs are higher, and the tax treatment of these plans is slightly different.

•   A SEP IRA is a Simplified Employee Pension Plan that small businesses and self-employed individuals can fund. Here, the employer makes the contributions. Employees do not. Like a SIMPLE IRA, the annual contribution limits are generally higher than for standard IRAs.

The Takeaway

The average American household has about $334,000 in retirement accounts, e.g., IRAs, 401(k) and 403(b) plans, pensions, and so forth. The number varies depending on age groups and other factors. Knowing how much others in your age group are saving for retirement can help provide a benchmark for evaluating whether you’re making the progress you envision.

There are a number of different formulas, calculations, and rules of thumb to help individuals figure out how much money they’ll need in retirement. While these figures can be helpful, it’s also important to take personal goals, financial responsibilities, and lifestyle into consideration.

Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).

FAQ

How much money do I need to retire comfortably?

Calculating the amount you need to retire comfortably is highly personal. It depends on how long you’re likely to live, how healthy you are, as well as the lifestyle you envision. It may be worth consulting with a professional to lay out different options, and what the financial implications may be, as this can influence how much you save as well as your investment strategy.

What percentage of my income should I save for retirement?

The general rule of thumb is to save between 10% and 20% of your income for retirement. The exact amount will depend on many factors, including whether you’re saving for yourself or also for a spouse; what your likely longevity will be; whether you might have other financial sources of income (e.g., from a trust or an inheritance); and the retirement lifestyle you hope to have.

When should I start saving for retirement?

Given that you could live as many years in retirement as you did while you were working, the odds are that you might need more savings than you anticipated. In that light, it’s wise to start as soon as you can, and maximize the savings opportunities available to you.

What happens if I start saving for retirement late?

If you get a late start on retirement, it’s even more important to maximize your savings and your investing strategy. As an older saver, it can be hard to recover from market volatility, so you want to be cautious. It may make sense to work with a professional.

How do I catch up on retirement savings?

Catching up on retirement savings can mean boosting the percentage you save, pairing another retirement account, such as an IRA, with your employer plan, making sure you get your employer match, and — for those 50 and up — being sure to take advantage of catch-up provisions that allow you to save more in most retirement accounts. For those between the ages of 60 and 64, a “super catch-up” amount is now allowed in most employer plans.

About the author

Laurel Tincher

Laurel Tincher is an entrepreneur and investor with a passion for climate solutions, emerging industries, and storytelling. With experience spanning climate tech, blockchain, event production, and other industries, she is known for her creative and forward-thinking approach to problem-solving and strategic investments. Read full bio.

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