A generation that was supposed to have peaked financially is still relying on parental support to get by.
More than half of millennials do not consider themselves fully financially independent from their parents, according to new research from Northwestern Mutual's Planning & Progress Study released Wednesday.
The research shows that the traditional path to financial autonomy has fractured under the weight of housing costs, student debt and a striking lack of basic financial preparation. The average age at which Americans now expect to achieve financial independence has reached 37.
The survey, conducted by The Harris Poll on behalf of Northwestern Mutual among 4,375 US adults between January 5 and January 21 this year, reveals a generation outearning its predecessors yet still unable to close the gap.
Millennials number more than 74 million and represent the largest living generation in the country, but structural economic forces keep pushing self-sufficiency further out of reach.
Housing sits at the centre of the problem. Home prices and rents have outrun wage growth for years, making independent living a stretch for millions of younger adults.
The research found that 74% of parents with children at home are either already planning or actively considering financial support to help their kids secure housing.
Student debt compounds the pressure, eating into monthly cash flow and competing directly with saving and investing priorities.
"This is a massive wake-up call for America," said Jeff Sippel, chief strategy officer at Northwestern Mutual. "True financial independence starts with a comprehensive plan that moves people out of the passenger seat and firmly behind the wheel of their own financial destiny."
The research also raises questions about the toll parental generosity takes on older households. Parents absorbing ongoing financial commitments to adult children risk eroding their own retirement security, a tension the firm says underlines the value of structured financial planning for both generations.
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