JournalSurvey: Gen X and Millennials Still Rely on Their Parents
The financial independence of Gen X and Millennials is being affected by parental support, rising housing costs, and student debt, according to a recent survey.
Miami New Realty
Miami New Realty, original brokerage blog archiveA recent survey highlights that many adults, particularly from the Gen X and Millennial cohorts, are taking longer to gain financial independence due to rising housing costs, educational debts, and other regular expenses that challenge their financial stability.
According to the survey findings, 50% of Millennials and approximately 33% of Gen Xers are still financially reliant on their parents.
This trend indicates a shift in the financial dynamics between older parents and their adult children. Traditionally, it was common for young adults to turn to their parents for assistance as they embarked on careers and new family lives.
However, Millennials are no longer in their early twenties; the youngest among them have recently celebrated their 30th birthday. Generation X now consists of individuals aged anywhere from 45 to 61.
Data from Northwestern Mutual's 2026 Planning & Progress Study reveals that 42% of participating adults express feeling financially dependent on their parents. Breaking this down by generation:
Gen Z (under 30 years): 72% rely on parents
Millennials: 53% rely on parents
Gen X: 33% rely on parents
More Time Before Inheritances
As individuals in the U.S. increasingly postpone parenthood and extend their lifespans, adult children find themselves waiting longer for potential inheritances, which have traditionally served as a gateway to financial freedom.
Research from the Wharton School at the University of Pennsylvania suggests that many individuals receive inheritances between the ages of 56 and 65. Furthermore, less than 40% of Americans will encounter an inheritance during their lifetime, according to an analysis from the Washington Post.
"The Great Wealth Transfer is indeed occurring, yet many Americans cannot count on inheritances as a financial lifeline," remarked Jeff Sippel, chief strategy officer at Northwestern Mutual.
This survey, published on June 1, is based on interviews conducted with 4,375 adults in January.
The Great Wealth Transfer is anticipated to involve an estimated $124 trillion, mostly passing from elderly generations to younger ones by the year 2048.
Wealthy Parents Ready to Pass Down Assets
Baby boomers, born from 1946 to 1964, currently hold 51% of the nation's wealth, which encompasses significant assets like real estate, stocks, pension benefits, and private enterprises, collectively assessed at around $90 trillion by late 2025.
"Many parents find themselves in a strong financial position and are eager to lend a helping hand," stated Ryan Nelson, president of emerging affluent wealth management at U.S. Bancorp Advisors. "They want to ensure their children enjoy a better quality of life."
However, this financial assistance may be slow to come, and a portion may never be realized. With people living longer, there are increasing expenses related to assisted living, nursing facilities, and other types of long-term care.
"While longevity is a wonderful aspect of life, it also intensifies the financial pressures associated with retiring comfortably," commented Douglas Benson Jr., founder and private wealth adviser at Northwestern Mutual's Benson Wealth Management.
Financial independence seems more elusive for today's young adults
According to the Northwestern Mutual study, most Americans believe it has become more challenging to achieve financial independence compared to earlier generations. Approximately 20% of those surveyed expressed doubts about ever achieving this independence.
A significant factor contributing to this difficulty is the escalation of home prices. Today's young adults often carry more mortgage debt than previous generations—even after factoring in inflation.
For instance, adults aged 29 to 34 had an average mortgage debt of $190,000 in 2022, in contrast to the $120,174 owed by the same age cohort in 1992 when adjusted for inflation, as stated by the Pew Research Center.
Moreover, individuals under 35 are increasingly likely to grapple with student loans, which have also seen a rise in average balances.
In 1992, the typical young adult would owe between $6,000 and $7,000 in student loans. Fast forward to 2022, and that number had escalated to between $16,000 and $20,000 in inflation-adjusted terms.
"Current young adults are encumbered by both student loans and significant mortgage debts," explained Rachel Minkin, a senior researcher at Pew Research.
The 2024 Pew Research study reported that 44% of young adults received financial support from their parents in the prior year.
What types of expenses do parents assist with?
Here’s a breakdown of the assistance provided by parents to young adults:
Household costs, such as groceries and utilities, 28%
Monthly cellphone bills or streaming services, 25%
Rental or mortgage payments, 17%
Medical expenditures, 15%
Educational costs, 11%
Among those parents who extended financial aid to their children, 36% indicated that this support negatively impacted their own financial situations.
"Parents with lower incomes were notably more inclined to report that this assistance had adverse effects on their personal finances," Minkin noted.
The Pew report was compiled through surveys conducted in October and November 2023.
Despite many middle-aged adults depending on their parents for financial support, they may not necessarily be willing to engage in financial discussions with them.
A U.S. Bank survey in 2024 found that just over half of Americans feel at ease discussing finances with their parents, specifically 49% of Gen X, 55% of Millennials, and 58% of Gen Z.
Additionally, the survey indicated that 37% of parents across different generations worry that their children may continue to rely on them financially well into their adult years.
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