As the United States celebrates 250 years of freedom, many Americans are struggling to achieve financial independence. More than 4 in 10 Americans – including more than half of millennials and one-third of Gen Xers – rely on their parents for financial support.
"This is a massive wake-up call for America," said Jeff Sippel, chief strategy officer at Northwestern Mutual. "The 'Great Wealth Transfer' is real, but an inheritance isn't something most Americans can rely on. Fewer than 1 in 3 Americans plan to leave an inheritance behind, and the average inheritance is below $50,000. 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."
One in five U.S. adults believes they will never achieve financial independence, according to the company's 2026 Planning and Progress Study. For those who do, the average age Americans say they achieved or expect to achieve financial independence is 37, nearly 20 years after they graduate from high school.
More than half of all U.S. adults say it is somewhat or much harder to achieve financial independence today than it was for previous generations. This sentiment is strongly echoed by older Americans, with two-thirds of baby boomers agreeing. "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," Sippel said.
America's youngest adults feel much more confident that they will achieve self-sufficiency over time. Among those who are still financially dependent, more than 8 in 10 Gen Zers believe they will be self-sufficient someday. Only 56% of millennials and half of Gen Xers who feel financially dependent agree.
"It's encouraging to see Gen Z bringing such optimism to their financial journey," Sippel said. "They also have something valuable on their side – time. For millennials and Gen Xers who feel less certain, the door to independence has not closed. Confidence comes from clarity. Americans at any age and stage can take a step toward self-sufficiency, and if they don't feel confident doing that on their own, a trusted financial advisor can be their guide."
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