Going out, getting a job and paying your bills were often seen as signs of reaching adulthood. But new research suggests that financial independence will come much later for many Americans.
About 72% of Gen Zers — those born between 1997 and 2012 — and 53% of millennials — born between 1981 and 1996 — still see themselves as financially dependent on their parents, according to Northwestern Mutual’s 2026 Planning & Progress Study.
With so many young people continuing to rely on family support, it is perhaps not surprising that Americans are not financially independent until they are 37 years old on average.
Why financial independence is taking so long now
More than half of respondents said achieving financial independence is more difficult today than it was in previous generations, according to the survey.
The findings come as Americans face a variety of economic pressures, from high housing costs to student loan debt and persistent inflation. The average age of first-time home buyers has reached a record high of 40 by 2025, according to the National Association of Realtors; High home prices and high mortgage rates continue to cost many young Americans out of the housing market.
Housing costs may be the biggest reason holding back financial independence, according to Bobbi Rebell, a certified financial planner. How to Become a Financial Officer.
“Everybody has to live somewhere,” Rebell told Money. “There is no way to avoid it except to live with someone else who pays the expenses, which is usually the parents.”
Meanwhile, Americans collectively carry nearly $1.7 trillion in student loan debt, a burden that can not only delay home ownership but also make it harder to save, invest and build financial stability.
While not everyone takes out student loans, Rebell says the debt can make it difficult for borrowers to achieve other financial goals during their early earning years. (The typical borrower spends 16 to 19 years paying off student loans.)
The result is a timeline that looks very different from previous generations. Traditional milestones like moving out, buying a home and becoming fully independent happen later in life – if at all.
“Growth was often very parallel and, in many ways, [easier] so that it makes sense to young people,” said Rebel.
More parents are helping older children pay for major expenses or contributing toward a first home, effectively extending financial support into adulthood, he adds. A recent TD Bank survey found that 67% of first-time homebuyers could receive or plan to receive money from a family member.
Will you ever be financially independent? Maybe not
For some Americans, financial independence feels out of reach. Nearly 1 in 5 respondents to a Northwestern Mutual survey said they don’t expect to ever reach that goal, a sentiment that is consistent across generations.
Rebell says the outlook may reflect changing expectations about what financial independence looks like.
“It may mean living a lifestyle that is not at the same economic level as their parents,” he adds. “It may mean more roommates than they would like.
While young adults were more likely to report relying on parental support, the trend was not limited to Gen Z and millennials. About one-third of Gen Xers (born between 1965 and 1980) also said see they consider themselves financially dependent on their parents, suggesting that intergenerational financial support may carry over into adulthood.
“This is a big wake-up call for America,” said Jeff Sippel, Northwestern Mutual’s chief strategy officer, in a statement. “Boomers and Gen X have memories of their parents’ retirements — based on defined benefits and pensions — and they recognize that their path will look very different.”
