New research from the Planning & Progress Study by Northwestern Mutual, a leading financial services company, exposes a quiet reality at the heart of modern adulthood: more than half of Millennials (53%) are not fully financially independent from their parents.

Traditionally, standing on your own two feet was linear: a diploma, a first job and leaving the nest. That script no longer exists. Young adults today aren't just living at home longer and taking on side gigs to try to "make it" — many are still relying on the Bank of Mom and Dad to some extent well into peak adulthood. The average age Americans now expect to achieve financial independence is 37.

What Is Keeping Millions of Millennials from Cutting the Financial Cord?

At more than 74 million strong, Millennials are the largest living generation in the U.S. They're outearning any generation before them and redefining timelines for the American Dream, so why can't they afford to leave the family's tab?

It's not ambition — it's math.

A collision of record housing costs, crushing student loans and a persistent gap in financial preparedness has made financial independence a moving target.

• The Housing Wall: Home and rent prices have outpaced income growth for years, making homeownership and independent living increasingly difficult. For many, receiving financial support is the only way in the door — and it's a growing trend. In fact, 74% of parents with children at home say they are considering or have already started planning to give financial support to help their kids make that move.
   
• Student Loan Balances: Record-high student loan debt is dragging financial momentum — eating up income, stalling savings and competing with other big life and money decisions — tethering many young adults to their families long after graduation.
   
• The Confidence Gap: Working Americans are earning more than ever yet still feel behind financially – highest among Millennials (53%)², who are missing basic finance tools to safeguard their future. The data comes from Northwestern Mutual's 2025 Consumer Sentiment Survey, which also found that among Millennials nearly half (43%) lack a retirement account, 66% don't have an emergency fund and nearly one-third (31%)³ lack a savings account all together.

"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."

What is the Impact on Parents' Financial Outlook?

For parents, the instinct to help your kids is natural, but the financial stakes are real. Millennials are navigating a complex financial system that keeps moving the goalpost, but that does not mean parents should jeopardize their own future. Parental generosity without clear boundaries can erode long-term financial security. A Northwestern Mutual financial advisor can help parents balance both priorities – supporting their children without sacrificing the future they've built and ensure they're able to feel secure during retirement.

To read the full findings from the latest Planning & Progress study, visit https://news.northwesternmutual.com/planning-and-progress-study-2026.