Financial dependence on parents persists as retirement concerns grow, Northwestern Mutual finds

The path to retirement is getting more complicated – and for many Americans, it still runs through mom and dad’s wallet. 

More than half of millennials and over one-third of Generation X adults still consider themselves financially dependent on their parents, according to new findings from Northwestern Mutual’s 2026 Planning & Progress Study, underscoring the financial pressures that continue to shape Americans’ long-term retirement outlook.  

According to the study, 53% of millennials and 33% of Gen X respondents describe themselves as financially dependent on their parents to some degree, revealing that financial independence remains elusive for many Americans well into adulthood.  

The findings arrive as retirement preparedness continues to be a growing concern across generations. 

The survey shows Americans now believe they will need $1.46 million to retire comfortably, up from $1.26 million last year. Nearly half, a staggering 46%, do not expect to be financially prepared when retirement arrives. 

An assessment tool John Hancock launched in partnership with the MIT AgeLab highlighted similar concerns, showing “weak readiness” persisting in longevity planning among Americans.  

The data point to increasingly complex dynamics regarding multigenerational financial planning. Gen X, often referred to as the current “sandwich generation,” is responsible for balancing support for both aging parents and adult children. On top of that, they are also working to strengthen their own retirement savings.  

“Boomers and Gen X have memories of their parents’ retirement – grounded in defined benefits and pensions – and see that their path will look very different,” said Jeff Sippel, chief strategy officer at Northwestern Mutual. 

This challenge is reflected when looking closely into retirement confidence levels. In its 15th Annual Workplace Benefits Study, Guardian Life found just 13% of full-time working Americans feel on track to save enough for their desired retirement lifetime, while 45% said they're somewhat or very far off track.

 “Americans are living longer and envisioning fuller, more active lives in the years ahead, but our research shows there’s a growing gap between those aspirations and how people are preparing today,” said Guardian Chairman and CEO Andrew MacMahon. 

Northwestern Mutual’s survey highlights that gap, as 50% of Gen X is worried they will outlive their savings. Meanwhile, one in five adults said they have already delayed retirement because of financial concerns.  

However, the results also point to a clear bright spot: the impact of professional financial advice. Americans who work with financial advisors consistently report greater confidence about their financial futures. The survey states that 74% of respondents with advisors said they expect to be financially prepared for retirement, compared with 43% of those without professional guidance. 

Financial independence and retirement readiness are becoming increasingly intertwined, shaping not just when Americans can retire, but how much support they still rely on along the way. With millions of adults still depending on parental assistance and many uncertain about their retirement prospects, there is growing importance in long-term financial planning while navigating an increasingly complex economic landscape.