Will the Value of Your Retirement Funds & Your Home Prevent You From Getting Need-Based Aid? Under the federal calculus for distributing aid, retirement plans are completely excluded and so is the home you live in.  In addition to that, the federal government shelters a certain amount of general parent savings, for retirement purposes.  This "asset protection allowance" differs based on age, but for a typical parent of a college-age child, the figure is around $45,000 to $50,000. Return to Education Startegy