Planning & Progress Study 2025

As people live longer, their likelihood of experiencing a long-term care event is increasing – and more than six in 10 (61%) U.S. adults predict that it will happen to them. Should that occur, a resounding 74% of Americans say they want to remain in their house and receive in-home care – while just 11% say they would prefer to live in a nursing home.

People Want to Stay at Home

Long-term care is the assistance provided to someone who has a chronic condition that is progressive in nature, gets worse as time goes on and generally has no cure. Someone who needs long-term care requires help because they are unable to perform at least two activities of daily living, including eating, bathing or showering, getting dressed, using the bathroom and getting in and out of bed or a chair – or they need supervision for a cognitive impairment. Typically, long-term care does not include medical care or treatment of the underlying illness or injury.

According to Northwestern Mutual’s 2025 Planning & Progress Study, across all generations and genders, a vast majority of Americans (74%) would prefer to age gracefully at home if they experienced a long-term care event.

If you had a health event that required long-term care, how would you prefer to receive care?
	All	Gen Z	Millennials	Gen X	Boomers+	Men	Women
In-home care	74%	57%	71%	78%	84%	69%	78%
Medical facility	15%	30%	19%	11%	4%	18%	12%
Nursing home or assisted living facility	11%	13%	10%	11%	12%	13%	10%

The results are remarkably consistent across race and incomes, too.

If you had a health event that required long-term care, how would you prefer to receive care?
	White	Black	Hispanic	High-Net-Worth (HNW)	Non-HNW
In-home care	77%	68%	70%	74%	73%
Medical facility	12%	19%	23%	13%	16%
Nursing home or assisted living facility	11%	13%	7%	13%	11%

Most Americans Expect to Need Care and to Be a Caregiver

Nearly six in ten (59%) U.S. adults believe their retirement will last longer than their parents’ “golden years.” One-third (32%) expect 10 or more extra years in retirement than their parents – and among Boomers+, the proportion is even higher (43%).

Perhaps considering their extra longevity, most Americans (61%) say it’s likely that they’ll need long-term care services for themselves at some point. A similar proportion (58%) believe it’s likely they will need to provide these services for a loved one at some point in their life. According to data from the U.S. Department of the Treasury, they may be right: approximately half of Americans turning age 65 today will need some type of long-term care in their lives.

However, just 42% of Boomers+ and 35% of Gen X’ers say they have planned financially for the possibility that they’ll need long-term care for themselves – and less than one-third (32%) of both groups have planned for the possibility they will need to provide these services for a loved one.

Cost of At-Home Care Could Soar to Half a Million

Despite Americans’ wishes to remain at home, the cost of providing long-term care could make it very difficult. According to the 2024 Illumifin Cost of Care Study, the annual cost of a home health aide providing only eight hours of care per day is $96,360. If those costs hypothetically increase by just 5% over the coming years, potential out-of-pocket costs could exceed half a million dollars by the year 2058 – a time when many of today’s working adults may need care.

Potential Out-of-Pocket Costs
Hypothetical projection based on annual increase of 5% in long-term care costs provided by a home health aide 8 hours per day.
Year	Projected Cost of Care
2025	$101,178
2055	$437,285
2056	$459,150
2057	$482,107
2058	$506,213
2059	$531,523

Many people also think that the costs of long-term care will be completely covered by health insurance or Medicare—but they're typically not. Medicare pays for doctors, hospitals, medication and short-term rehab after hospitalization—but not for independent or assisted living.

To see what care costs are and how much they’re projected to change over time for your area and across the country, visit https://www.whatcarecosts.com/NorthwesternMutual.

The Impact on Caregivers if Plans are Not Fully Funded

About half of Americans have been a caregiver at some point in their life. Two in ten Americans (20%) say they are currently providing care – including 28% of Gen Z and 27% of Millennials. Meanwhile, almost three in ten Americans (28%) say they have provided care for someone in the past.

Are you currently, or have you ever been a caregiver?
	All	Gen Z	Millennials	Gen X	Boomers+
Yes, I am currently a caregiver / providing care for someone	20%	28%	27%	20%	8%
Yes, I have provided care for someone in the past	28%	23%	25%	26%	36%

These opportunities to support a loved one in a significant time of need often come with a cost. Caregivers report having to cut back on spending, raid their personal savings, work more than expected, accumulate more debt, or even pull from their retirement funds.

Which of the following activities have you engaged in to address the impact of caregiving on your finances? (among current or former caregivers)
	All	Gen Z	Millennials	Gen X	Boomers+
Decreased my spending	36%	32%	38%	41%	31%
Took money from my personal savings	25%	32%	29%	25%	17%
Worked longer hours or took on a second job / side gig	23%	27%	31%	25%	10%
Took on credit card debt	22%	24%	28%	25%	13%
Delayed paying down debt	20%	21%	25%	22%	13%
Asked friends or family members for financial support	18%	27%	25%	18%	5%
Reallocated funds earmarked for my retirement	12%	16%	15%	9%	9%
Took out a second mortgage	8%	16%	11%	4%	2%
None of the above	28%	11%	12%	27%	50%

Read the News Release

Read the 2025 Planning and Progress Study – Long-Term Care Planning

Read the Local Market Data Report

The oldest members of Generation X turn 60 in 2025 and many in the “middle child” generation find themselves hurtling closer to their retirement years with deep uncertainties about the state of their finances. More than half (54%) of Gen X’ers – born between 1965 and 1980 – think they won’t be financially prepared for retirement when the time comes.

The study also finds Gen X’ers think they’ll need $1.57 million to retire comfortably – $310,000 more than the “magic number” national average. When Gen Xers who have saved something for retirement were asked how much they have saved as a multiple of their current annual income, the #1 answer (17%) was 2x.

Amount Gen X’ers have saved as a multiple of their current annual income
Less than 1x my income	14%
1x	7%
2x	17%
3x	14%
4x	9%
5x	6%
6x	4%
7x	4%
8x	3%
9x	1%
10x	6%
More than 10x my income	8%
Not sure	7%

Reality Bites: Gen X’ers think outliving their savings is significantly more likely than being able to leave an inheritance

More than half (56%) of Gen X’ers think it’s likely they’ll outlive their savings as compared to 40% of Boomers+, according to the research. It’s not surprising, therefore, that Gen X’ers express the most concern about being able to afford retirement. They’re also the least likely among all generations to say they expect to leave an inheritance.

Financial milestones people are most concerned about being able to afford	Millennials	Gen X	Boomers+
Retirement	36%	57%	41%
Having long-term care protection in place	26%	34%	38%
Paying off my mortgage	24%	25%	18%
Leaving an inheritance	19%	19%	25%

 

Expect to leave an inheritance	Millennials	Gen X	Boomers+
Yes	32%	26%	30%

Dazed & Confused: Gen X’ers are less sure of themselves as financial planners when compared to Boomers+

The research finds that Gen X’ers have significantly less clarity than Boomers+ on a range of issues in their financial lives, including how inflation and taxes could impact retirement, strategies to address healthcare and long-term care needs, and more.

Understanding and clarity around factors that could impact financial plans	Gen X	Boomers+
I have a good understanding of how inflation could impact my retirement and have factored that into my financial plans.	53%	66%
I have a good understanding of how taxes could impact my retirement and have factored that into my financial plans.	49%	62%
I have a good understanding of how potential drops in the stock market could impact my retirement and have factored that into my financial plans.	51%	60%
I have a plan to address healthcare costs in retirement.	45%	65%
I have enough life insurance protection in place to take care of my loved ones if something happened to me.	48%	51%
I will have enough to leave behind an inheritance or gift to loved ones and/or charitable causes I care about.	39%	57%
I know how much money I will need to retire comfortably.	42%	54%
I have a plan to address long-term care needs in retirement.	35%	43%
I have planned for the possibility that I could outlive my savings.	36%	41%

Risky Business: Gen X’ers are prone to a common blind spot

Half (50%) of Gen X’ers say they’ve had a financial blind spot when it comes to managing their finances – they feel they’ve placed too much emphasis on building wealth without dedicating enough to protecting their assets. The numbers for Boomers+ who say the same are significantly lower – 35%.

Common financial blind spot	Gen X	Boomers+
Placed too much emphasis on building wealth/growing assets without dedicating enough to protecting assets	50%	35%

Office Space: Planning to continue working

Nearly half (48%) of Gen X surveyed are planning to continue working during their retirement years, or already are. Less than one third (30%) of Boomers+ say the same. 

Most Gen X’ers working or planning to work in retirement say they will continue to work out of necessity – to be in a position to afford retirement. A third (34%) say it will be part-time at a different job, and a quarter (24%) say it will be full-time at a different job.

Plan to continue working during retirement (or already are working in retirement)	Gen X	Boomers+
Yes	48%	30%
No	25%	56%
Not sure	27%	14%

 

Reasons why people plan to continue working during retirement (or are already working in retirement)	Gen X	Boomers+
Continue to feel useful / stimulated	49%	61%
Need the additional income to be able to afford retirement	56%	46%
Want the additional income to fund my preferred retirement lifestyle	45%	48%
Meet new people / be part of a community	22%	24%
Pursue a new or more fulfilling career	13%	9%

Before Sunrise: Financial uncertainty is keeping Gen X’ers up at night

More than a third (35%) of Gen X’ers say uncertainty about finances keeps them up at night at least once a month, while for Boomers+ it’s 14%.

One thing weighing on the minds of roughly half of Gen X’ers is whether Social Security will be there for them when they qualify for it. That question is neck-and-neck with, “How much will I need to retire comfortably?” among the most important retirement issues for Gen X’ers. And it clearly stands apart from how Millennials and Boomers+ are thinking about Social Security.

“Burning questions” about retirement planning most important to people	Millennials	Gen X	Boomers+
How much money will I need to retire comfortably?	47%	48%	32%
Will Social Security be there when I qualify for it?	39%	47%	20%

Additionally, the research shows that Gen X’ers trail Boomers+ across a range of health, wealth, and wellness issues.

Currently in a strong state	Gen X	Boomers+
Relationship with family	78%	88%
Job stability	74%	85%
Friendships	73%	82%
Mental health	72%	89%
Physical health	71%	75%
Finances	52%	68%

Stand By Me: Fewer Gen X’ers get professional financial advice than Boomers+

Gen X’ers are less likely than Boomers+ to have sought professional help for their finances. The survey finds that 33% of Gen X’ers currently work with an advisor – 10 percentage points lower than the 43% of Boomers+ who do the same.

Work with a financial advisor	Gen X	Boomers+
Yes	33%	43%

Read the News Release

Read the 2025 Planning and Progress Study – Spotlight on Gen X - Nearing Retirement

Read the Local Market Data Report

By a wide margin, most Americans today continue to trust financial advisors with their money management over artificial intelligence (AI) tools alone. However, younger generations say they prefer working with advisors who understand how to use AI as a financial planning tool. 

Human Connection Matters: Trust in Advisors Over Technology Solely Remains Strong

Americans currently report trusting humans significantly more than AI alone to perform a wide array of financial planning strategies and budget management tasks, like developing a tailored financial plan, managing investment portfolios, and creating a retirement plan.

Who do you trust more in the following scenarios?
	Trust Humans More	Trust AI / Gen AI More	Trust Both the Same	Not Sure
Creating a retirement plan	56%	13%	21%	10%
Asking a financial question	55%	15%	22%	8%
Developing a tailored, robust financial plan	53%	15%	21%	11%
Making asset allocation decisions, building and managing investment portfolios	53%	15%	20%	12%
Creating a savings plan	53%	14%	23%	10%
Recommending financial products	52%	14%	23%	11%
Making updates to your personal customer information	52%	16%	22%	10%
Providing financial savings tips	50%	16%	25%	9%
Managing a budget and keeping me on track	48%	18%	24%	10%

Americans Prefer a Financial Advisor Who Understands and Uses AI

AI is becoming more integrated into the everyday lives of Americans. Today, nearly one third (31%) of U.S. adults are using the technology in their personal time or at work. And despite the existing healthy skepticism about AI’s potential to provide trusted financial advice, nearly half of Americans (47%) say they would actually prefer to work with a financial advisor who understands and uses AI to help their clients build financial security. These feelings are more pronounced among younger Americans: 54% of both Gen Z’ers and Millennials prefer to work with a financial advisor who understands and uses the technology as part of their role, compared to 46% of Gen X’ers and 36% of Boomers+.

A large percentage of Americans report feeling comfortable with financial advisors using AI for a variety of tasks – including detecting fraud, predicting future trends, modeling financial scenarios, and being responsible for capturing information during meetings. Among Americans who have a financial advisor, the comfort level is even higher.

Most Americans Trust People Over AI

Outside of the financial services industry, a majority of U.S. adults say they do not yet trust AI to exclusively perform a wide variety of tasks – including driving cars, teaching classes, umping baseball games, providing healthcare and childcare, and producing artwork like movies, books, music and paintings.

How trusting are you of leveraging AI / GenAI to take over for…
	Trusting	Untrusting
Human umpires and referees in professional sports	41%	59%
Humans driving cars (i.e. self-driving vehicles)	34%	66%
Nurses when obtaining your medical history / existing symptoms for your doctor visit	37%	63%
Teachers and professors for core curriculum classes	34%	66%
Parents for keeping kids accountable and teaching them about responsibility	31%	69%
Artists to produce movies, books, music, paintings, etc.	36%	64%

Read the News Release

Read the 2025 Planning and Progress Study – AI & Money

Read the Local Market Data Report

As a $90 trillion Great Wealth Transfer looms, more Americans say they are preparing to leave a financial legacy, yet fewer expect to receive one themselves. Nearly one-third (31%) of U.S. adults anticipate leaving an inheritance or a financial gift / donation to a charitable organization – up from 26% in 2024. Meanwhile, just one-fifth (20%) expect to receive an inheritance, a decrease from the 25% who said the same last year.

The study also finds that among those expecting to receive an inheritance, more than half (57%) say it is “critical” or “highly critical” to their long-term financial security. For Gen Z and Millennials, it’s even higher – 63% and 69%, respectively.

Six in 10 (60%) Americans who expect to leave an inheritance say they have had a conversation with their family about their plans, according to the research. But four in 10 (39%) Boomers+ and six in 10 (61%) Gen X’ers say they do not have a will.

Closing the legacy gap across generations

Across all generations, expectations for leaving an inheritance have increased year-over-year, while expectations for receiving an inheritance have fallen. As such, the gap between what Gen Z and Millennials say they expect in the way of an inheritance versus what their parents are actually planning to leave behind is narrowing.

Those who expect to leave an inheritance or give a gift / donation to a charitable organization
	All	Gen Z	Millennials	Gen X	Boomers+
2025	31%	39%	32%	26%	30%
2024	26%	36%	28%	22%	22%

 

Those who expect to receive an inheritance
	All	Gen Z	Millennials	Gen X	Boomers+
2025	20%	30%	26%	20%	9%
2024	25%	38%	32%	28%	11%

Notably, four in ten (39%) Gen Z adults say they plan to leave an inheritance or financial gift behind – more than any other generation.

Three in 10 (30%) Gen Z’ers say they expect to receive an inheritance, while another 10% have already received one and don’t expect another. A similar number – 32% of Millennials, 26% of Gen X, and 30% of Boomers+ – expect to provide an inheritance to the next generation. Last year, nearly four in 10 (38%) Gen Z’ers said they expected an inheritance while only 28% of Millennials, 22% of Gen X and 22% of Boomers+ said they planned to leave one behind.

Meanwhile, a quarter (26%) of Millennials expect to receive an inheritance (excluding the 6% who say they already have), while 26% of Gen X and 30% of Boomers+ plan to leave one.

Counting on an inheritance for long-term financial security

For Americans expecting to receive an inheritance, the majority say it is “critical” or “highly critical” to their long-term financial security. That is particularly true for Gen Z and Millennials.

How critical to your long-term financial security or retirement is the inheritance that you're expecting?
	All	Gen Z	Millennials	Gen X	Boomers+
CRITICAL (NET)	57%	63%	69%	48%	33%
Highly critical. Without receiving an inheritance, I won't achieve long-term financial security or be able to retire comfortably.	25%	28%	33%	20%	10%
Critical. Without receiving an inheritance, I may not achieve long-term financial security or be able to retire comfortably.	32%	35%	36%	28%	23%
NOT CRITICAL (NET)	43%	37%	31%	52%	67%
Not critical. I'll achieve long-term financial security and retire comfortably with or without receiving an inheritance.	36%	31%	28%	45%	55%
Not critical. I'll never achieve long-term financial security or retire comfortably with or without receiving an inheritance.	7%	6%	3%	7%	12%

Americans across all age groups are prioritizing gifting to the next generation

Among those expecting to leave an inheritance, nearly two-thirds (64%) say it is either their “single most important financial goal” or is “very important.” Interestingly, it is more of a priority for younger adults, with 68% of Gen Z and 74% of Millennials saying it is either their single most important financial goal or very important, versus 66% of Gen X and 47% of Boomers+ who say the same.

How important of a financial goal is it for you to leave something for your kids / the next generation?
	All	Gen Z	Millennials	Gen X	Boomers+
It is my single most important financial goal	20%	23%	19%	27%	12%
Very important	44%	45%	55%	39%	35%
Somewhat important	24%	24%	19%	22%	30%
Not that important	8%	6%	5%	9%	13%
Not at all important	4%	2%	2%	3%	10%

The vast majority of people who expect to leave an inheritance plan to give it to their children and grandchildren.

To whom do you, or would you, expect to leave your inheritance and/or charitable gift / donation?
	All	Gen Z	Millennials	Gen X	Boomers+
Children / Grandchildren	66%	52%	67%	70%	75%
Spouse	40%	45%	41%	40%	36%
Charitable organizations / causes / religious institutions	32%	31%	30%	26%	40%
Extended family members	23%	33%	22%	18%	19%
Friends	16%	32%	18%	6%	5%
Not sure	2%	5%	2%	2%	2%

Planning for the future – A work in progress

While the desire to leave behind a financial legacy is clear, many Americans have not taken the steps to ensure it happens. Four in 10 (39%) Boomers+ and six in 10 (61%) Gen X’ers do not have a will.

Do you have a will?
	All	Gen Z	Millennials	Gen X	Boomers+
Yes	39%	27%	26%	39%	61%
No	61%	73%	74%	61%	39%

However, the study reveals some bright spots about people’s intentions for involving their children and families in conversations about leaving an inheritance and broader financial planning.

The majority (60%) of Americans who expect to leave an inheritance or a financial gift / donation to a charitable organization say they have had a conversation with their family about their plans.

Have you had a conversation with your family about your plan to leave an inheritance and/or leave a gift/donation to a charitable organization?
	All	Gen Z	Millennials	Gen X	Boomers+
Yes	60%	56%	64%	59%	62%
No	40%	44%	36%	41%	38%

Additionally, three in four parents (77%) say they would feel comfortable formally including their teenage or young adult children in their annual meeting with their financial advisor. When asked to select the primary reasons why, most said it would be to "teach / instill in their children good financial habits" (67%) and to "introduce them to financial planning concepts" (61%).

Read the News Release

Read the 2025 Planning and Progress Study – Leaving a Legacy

Read the Local Market Data Report

Financial uncertainty is having a significant impact on Americans’ wellbeing. From sleep quality and mental health to personal relationships and job performance, money is weighing heavily on many Americans – but heaviest on Gen Z and Millennials.

Financial anxiety is increasingly impacting the way Americans experience life

Americans' feelings and emotions about money are showing up in their day-to-day lives in many ways.

Depression and anxiety: Nearly 7 in 10 Americans (69%) say that financial uncertainty has made them feel depressed and anxious – an 8-percentage point increase over 2023 (61%). These feelings are especially pronounced for America’s youngest generations. Nearly 4 in 10 Gen Z (39%) and Millennials (38%) report feeling depressed and anxious on at least a weekly basis due to financial uncertainty – up 8 and 5 percentage points over 2023, respectively.

Sleepless nights: Meanwhile, 63% of Americans say money worries have kept them up at night. Once again, the impact on young Americans is even more evident: 53% of Gen Z and 50% of Millennials say they toss and turn about their finances at least once a month. These feelings are disrupting men and women similarly – 1 in 4 (25%) of both say they’re kept up at night with financial concerns at least weekly. 

Anxiety creating issues: A majority of Americans who are married or living with their partner (57%) say that financial uncertainty has impacted their relationship with their spouse or partner, up 13 percentage points from 2023 (44%). Again, these challenges are felt more by Gen Z and Millennials – a whopping 71% and 75% of these generations who are in serious relationships agree – up from 52% and 62% in 2023, respectively.

Sidetracking social events and job performance: More than half of Americans (55%) say their financial concerns have caused them to miss out on a social event. Meanwhile, nearly half (49%) say their worries about money have affected their job performance – up 13 percentage points since 2023 (36%). And for Gen Z and Millennials, the interference is undeniable: 74% and 71% respectively have missed out on social events, while 64% and 58% say these feelings impacted them at work.

Feeling sick: 4 in 10 Americans (40%) say that financial worries have made them feel physically ill. Among Gen Z and Millennials, the numbers soar to 56% and 53%, respectively.

Finances outrank physical health and mental health as greatest weakness

As part of the study, Americans were asked to describe how “strong” or “weak” they feel about various aspects of their personal lives. Nearly half (45%) of Americans label their finances as “weak” – a sum that significantly outpaced shaky feelings about their physical health (28%), mental health (28%), friendships (27%), job stability (26%) and their relationship with family (22%).

Americans’ feeble feelings about finances hold true across all genders, ages and all races. Across the board, people describe their finances as “weak” more than any other facet of their lives.

But, again, more Gen Z and Millennials identify money management as a weakness than other generations. More than half of Gen Z (52%) and Millennials (51%) describe their finances as “weak,” followed closely by Gen X (48%), and trailed by Boomers+ (32%).

Among women in America considering their own situation, the largest percentage of women use the word weak to describe their finances (50%), followed by physical health (30%), mental health (29%), friendships (27%), job stability (27%) and relationship with family (20%).

Similarly, among men, 40% say their finances are “weak” – more than other factors like friendships (27%), physical health (25%), mental health (25%), job stability (25%) and relationship with family (23%).

People with advisors much more likely to describe finances as strong

Unlike the general population, 76% of Americans with a financial advisor describe their finances as “strong” – significantly more than the 44% of Americans without an advisor who shared the same sentiment.

Among Gen Z who have a financial advisor, 63% describe their finances as “strong.” Meanwhile, among Gen Z’ers without an advisor, just 42% feel the same.

Read the News Release

Read the 2025 Planning and Progress Study – Money and Wellness

Read the Local Market Data Report

The majority (55%) of Americans believe that to achieve long-term financial security, it is “highly important” or “critical” to get professional financial advice between the ages of 25 and 39.

Meanwhile, Gen Z is redefining how they approach and prioritize major financial milestones, from getting married, to buying a house, to having children, to retirement. In fact, Gen Z’ers expect to reach these key moments later in life than their parents. And as America’s youngest adults navigate these shifting timelines, more and more are turning to financial advisors for help – and at a significantly earlier age than previous generations.

‘Get professional advice by age 40 to achieve financial security,’ says majority of Americans

The majority (55%) of Americans believe that to achieve long-term financial security, it is “highly important” or “critical” to get professional financial advice between the ages of 25 and 39. The good news is that Gen Z’ers and Millennials recognize the need and are taking action.

More than eight in 10 Gen Z’ers (81%) and Millennials (82%) say their financial planning needs improvement, and over a quarter of each (28% of Gen Z and 26% of Millennials) say they have gotten professional advice from a financial advisor for the first time within the last year.

Among those young adults, the top reason was to help build and stick to a comprehensive financial plan focused on both growing and protecting their wealth. Interestingly, one-third (32%) of Millennials say it was to help them better align their finances with their personal values and causes they care about the most.

Reasons for seeking professional advice from a financial advisor within the last year	U.S. Adults	Gen Z	Millennials
To help me build and stick to a comprehensive financial plan focused on both growing and protecting my wealth	34%	32%	37%
To help manage my investment portfolio	33%	22%	26%
To help me plan / save for retirement	31%	27%	29%
To grant me peace of mind that my finances will stay on track	26%	26%	26%
To help better align my finances with my personal values and causes I care about the most	25%	24%	32%
To save me time managing my finances	25%	25%	28%
To help prepare for potential shifts in economic policy (Social Security, tariffs, etc.)	23%	24%	23%
To help navigate volatility in the markets / economy	22%	20%	18%
To minimize the tax impact of my portfolio	22%	16%	22%
My assets reached a level where professional guidance is needed	20%	18%	20%
To help me identify and address blind spots or gaps	19%	22%	24%
I experienced a major life event (got married, got divorced, had a baby, etc.)	15%	17%	20%
To help navigate a financial windfall (inheritance, bonus, etc.)	13%	14%	19%

Most young adults want to be homeowners and parents but aren’t sure they can afford it

Gen Z adults who want to start a family say they hope to have an average of 3.4 children – more than Millennials (2.9), Gen X (2.6), and Boomers+ (2.4).

However, a large number of Gen Z’ers are concerned they won’t be able to afford kids. Three in ten (29%) say having children is one of their greatest affordability concerns, second only to buying a house (46%). That’s more than the 16% of Millennials who are concerned about having children, and the 31% who say the same about buying a house.

Milestones most concerned about being able to afford	U.S. Adults	Gen Z	Millennials
Retirement	40%	21%	36%
Having long-term care protection in place should it be needed	30%	21%	26%
Buying a house	23%	46%	31%
Paying off my mortgage	21%	17%	24%
Making a major/large purchase (vacation home, car, boat, etc.)	19%	24%	24%
Leaving an inheritance	19%	11%	19%
Having children	11%	29%	16%
Paying for my own college/higher education	9%	24%	10%
Getting married	8%	21%	10%

Those concerns about the cost of childcare are well-founded. In fact, about two-thirds of Gen Z and Millennials who have at least one child say that the amount they spend on raising children is the same or more than the cost of their rent or home mortgage.

Do you estimate the amount you spend on your children each month to be more, less or the same as your monthly rent/mortgage payment?	Gen Z	Millennials
More	41%	42%
The same	26%	30%
Less	17%	22%
I don’t pay rent or a mortgage	16%	6%

Altered timelines

According to the research, Gen Z and Millennials expect to reach a range of major financial life milestones later in life than their parents.

Getting married	Gen Z	Millennials
Plan to reach later in life than my parents did	40%	35%
Plan to reach earlier in life than my parents did	23%	23%
Plan to reach around the same age my parents did	18%	22%

 

Buying a house	Gen Z	Millennials
Plan to reach later in life than my parents did	37%	34%
Plan to reach earlier in life than my parents did	28%	28%
Plan to reach around the same age my parents did	18%	21%

 

Having children	Gen Z	Millennials
Plan to reach later in life than my parents did	39%	30%
Plan to reach earlier in life than my parents did	23%	27%
Plan to reach around the same age my parents did	17%	22%

 

Retirement	Gen Z	Millennials
Plan to reach later in life than my parents did	43%	41%
Plan to reach earlier in life than my parents did	20%	21%
Plan to reach around the same age my parents did	15%	19%

However, when it comes to professional financial advice, Gen Z’ers who work with an advisor started doing so at age 23 – more than two decades earlier than Boomers+. Millennials began working with an advisor at age 30, a decade earlier than Gen X and nearly 20 years earlier than Boomers+.

	U.S. Adults	Gen Z	Millennials	Gen X	Boomers+
Age started working with a financial advisor	38	23	30	40	49

Advisors remain the most trusted source for financial advice in America

U.S. adults say they trust financial advisors more than any other source for financial advice by a wide margin. One-third (33%) of Americans trust financial advisors the most – nearly double the #2 source of advice (family members) and triple the #3 source (spouse / partner).

Gen Z stands out slightly as the only generation to identify family members as the most trusted source of financial advice, followed closely by financial advisors.

Most trusted source of financial advice	U.S. Adults	Gen Z	Millennials	Gen X	Boomers+
Financial advisor	33%	26%	30%	36%	40%
Family member	17%	29%	16%	16%	10%
Spouse / partner	11%	10%	14%	11%	11%
Business news	5%	2%	5%	5%	6%
Friend	4%	6%	5%	3%	2%
Online financial influencers and social media sites (e.g., Reddit, TikTok)	4%	7%	5%	3%	1%
Trade associations (e.g., AARP)	2%	2%	2%	2%	1%
Local news	2%	3%	3%	2%	1%
I have not received financial advice from anyone	22%	15%	20%	22%	28%

Read the News Release

Read the 2025 Planning and Progress Study – Early Adult Life

Read the Local Market Data Report

Americans’ “magic number” to retire comfortably in 2025 is $1.26 million, $200K less than the $1.46 million reported last year and nearly flat with 2022 and 2023 estimates. However, among Americans who have retirement savings, one in four (25%) say they have just one year or less of their current annual income put aside for it.

U.S. adults 18+	2025	2024	2023	2022	2021
Expected amount needed to retire comfortably	$1.26M	$1.46M	$1.27M	$1.25M	$1.05M

For Gen X’ers, many of whom are approaching their retirement years, 52% have 3x their current annual income or less saved. And the majority (54%) believe they will not be financially prepared for retirement when the time comes.

As a multiple of your current annual income, approximately how much do you have saved for retirement?
Of those with retirement savings	All	Gen Z	Millennials	Gen X	Boomers+
Less than 1x my income	17%	23%	22%	14%	10%
1x	8%	11%	12%	7%	3%
2x	15%	16%	17%	17%	9%
3x	12%	12%	14%	14%	7%
4x	9%	10%	10%	9%	9%
5x	7%	5%	7%	6%	8%
6x	4%	6%	2%	4%	6%
7x	4%	7%	4%	4%	4%
8x	3%	3%	2%	3%	5%
9x	1%	0%	2%	1%	4%
10x	6%	2%	3%	6%	11%
More than 10x my income	9%	2%	1%	8%	18%
Not sure	5%	3%	4%	7%	6%

More than half (51%) of Americans think it’s somewhat or very likely they will outlive their savings, according to the study. In contrast, only 16% feel confident enough to say the prospect of outliving their wealth is “very unlikely.” Meanwhile, more than a third (35%) of Americans say they have not taken any steps to address that potential outcome.

In your opinion, what is the likelihood that you could outlive your savings?	All	Gen Z	Millennials	Gen X	Boomers+
Net Likely	51%	51%	57%	56%	40%
Very likely	21%	18%	24%	24%	17%
Somewhat likely	30%	33%	33%	32%	23%
Net Unlikely	40%	34%	34%	36%	53%
Very unlikely	16%	12%	14%	16%	22%
Somewhat unlikely	24%	22%	20%	20%	31%
Don’t know	9%	15%	9%	8%	7%

The amount Americans need to invest each month to accumulate $1.26 million by age 65 depends on several factors – especially when they start saving. Individuals starting at age 20 would need to invest $330 per month, others starting at age 30 would need to set aside $695 per month – assuming a 7% rate of return compounded daily. The longer they wait – the more they need to invest. People starting at age 40 would need to save $1,547 per month – and if they postpone saving to age 50, they would need to invest $3,958 per month. This equation assumes that individuals save regularly and never borrow from their retirement savings accounts before reaching age 65.

In general, Northwestern Mutual recommends that people aim to replace around 80% of their pre-retirement income. However, the actual ‘magic number’ calculation for each person will depend on things like when they want to retire, where they’ll live, and what kind of lifestyle they want to maintain throughout their retirement years.

Younger people start saving sooner, want to retire earlier, and plan to live longer

Overall, working age Americans say they started saving for retirement at age 31 and plan to retire at age 65. But across every generation, Americans report they are saving sooner, planning to retire earlier, and expecting to live longer.

For instance, Gen Z’ers started saving at 24, aim to retire at 61, and more than a third (34%) think it’s likely they’ll live to 100. Boomers+ started saving at 37, aim to retire at 72, and less than a quarter (23%) think it’s likely they’ll live to 100.

	Age started saving	Age plan to retire	Difference between starting age and retirement age
Gen Z	24	61	37 years
Millennials	29	64	35 years
Gen X	33	67	34 years
Boomers+	37	72	35 years

The generation with the most confidence they’ll be financially prepared for retirement is Gen Z. Conversely, Gen X is the only generation with a majority of respondents saying that they do not think that they will be ready to retire.

Do you think you will be financially prepared for retirement when the time comes?	All	Gen Z	Millennials	Gen X	Boomers+
Yes	54%	63%	54%	46%	56%
No	46%	37%	46%	54%	44%

A big blind spot for younger Americans: prioritizing investing over insurance

Despite their early efforts to invest, one financial blind spot could impact younger generations. Six in ten Gen Z’ers (61%) and Millennials (60%) say that they are placing too much emphasis on building wealth and growing their assets without dedicating enough to protecting those assets and managing against risks with life or disability insurance. Among Boomers, just 35% say the same.

Social Security and inflation burn a hole into top retirement concerns

When it comes to people’s burning questions about retirement, concerns about Social Security and inflation are more pressing than other major planning challenges, including outliving life savings, planning for long-term care, managing taxes, and budgeting for healthcare.

Americans’ Top “Burning Questions” About Retirement (percentage indicates inclusion in top three)
How much money will I need to retire comfortably?	43%
Will Social Security be there when I qualify for it?	33%
What if inflation rises when I’m retired	30%
Is it possible I could outlive my savings?	27%
How can I plan for potential long-term care needs?	26%
How will taxes impact me in retirement?	25%
How should I budget for healthcare expenses?	21%
Will I have enough to leave behind assets for loved ones or charitable causes I care about?	19%
What if the stock market drops when I’m retired?	14%

On the topic of Social Security, only about one in four Gen X’ers (26%) and Boomers+ (27%) say that they plan to delay receiving their benefits as long as possible to maximize their monthly benefit. Under half of Gen X’ers (46%) and Boomers+ (45%) say they will start receiving their benefit when they hit their full retirement age, while 28% say they will start to receive payments as soon as they are eligible, even though their monthly benefit may be reduced.

When do you plan to start receiving your Social Security benefits? (asked to Gen X and Boomers+ only)	Gen X	Boomers+
As soon as I’m able to, even though my monthly benefit may be reduced	28%	28%
Once I hit my full retirement age, so I qualify for my full benefit	46%	45%
I plan to delay as long as possible so I can maximize my monthly benefit	26%	27%

Interestingly, there’s a sizable gap in importance among generations when it comes to Social Security. For Gen X, the question about whether Social Security will be there when they need it is nearly on equal footing to the question about how much they will need to retire comfortably. For Gen Z, concern about Social Security is significantly lower.

Will Social Security be there when I qualify for it? (percentage who include this in their top three “burning questions” about retirement)
All	33%
Gen Z	26%
Millennials	39%
Gen X	47%
Boomers+	20%

Not your parents’ retirement – and probably not done with work, either

The research finds eight in ten U.S. adults say their vision of retirement is different than how their parents’ generation viewed it, and a third (32%) say they expect their retirement to last 10+ years longer than their parents’.

The biggest differences in retirement life that people expect, generation over generation, are: more travel (51%), more activities that are personally fulfilling (46%), more time with friends and family (45%), more work (37%), and more volunteering (21%).

On the subject of work, 40% of Americans plan to work (or are currently working) during their retirement years, and for Millennials and Gen X’ers it’s even higher – 45% and 48% respectively. The Boomers+ generation is the only one where a majority of respondents say they are not planning to work at all in retirement.

Are you planning to continue working (or currently working) during your retirement years?	All	Gen Z	Millennials	Gen X	Boomers+
Yes	40%	39%	45%	48%	30%
No	35%	30%	27%	25%	56%
Not sure	24%	31%	28%	27%	14%

The reason people choose to work in retirement is split nearly evenly between those who say they want to continue feeling useful / stimulated (50%) and those who say they will need the additional income to afford retirement (48%). Gen X stands out somewhat, with 56% saying they will need to work for the additional income.

Among Americans who are currently working or are planning to work in retirement, the majority (59%) say that they would work either part-time or full-time at a different job, while 1 in 5 (20%) expect to pick up a “side gig” with flexible hours. Slightly fewer (18%) say that they would work part-time at the same job.

Using best judgment, what do you imagine work will look like/what does work currently look like during your retirement years?	All	Gen Z	Millennials	Gen X	Boomers+
Part time at a different job	31%	28%	29%	34%	31%
Full time at a different job	28%	40%	34%	24%	12%
Side gig with flexible hours	20%	21%	20%	20%	19%
Part time at the same job	18%	9%	15%	17%	32%
Other	3%	2%	2%	5%	6%

Read the News Release

Read the 2025 Planning and Progress Study – Work & Retirement

Read the Local Market Data Report

Inflation continues to sting in America, with significant numbers of U.S. adults saying elevated prices in the grocery aisles, at the gas pump and elsewhere are having a large impact on their finances. Meanwhile, among people who don’t own a home, the majority say homeownership will never be affordable – not now, not ever.

At the same time, some financial trends, behaviors and concerns among Americans have shifted in a positive direction since last year. People are feeling more optimistic that the United States will avoid recession and they’re reporting greater financial discipline, reversing a five-year decline. And for Millennials, the burden of college debt appears to be receding – but a new financial foe is taking its place: medical debt.

These are among the topline findings from Northwestern Mutual’s 2025 Planning & Progress Study, the company’s proprietary research series that explores Americans’ attitudes, behaviors and perspectives across a broad set of issues impacting their long-term financial security.

Inflation is the #1 financial concern and Americans say their household incomes are not keeping up

Northwestern Mutual’s 2025 Planning & Progress Study finds that half (51%) of U.S. adults believe inflation will increase in 2025, more than double the 25% who expect inflation to decrease and the 24% who expect it to stay the same.

Furthermore, two-thirds (65%) of U.S. adults say inflation is the dominant concern that could impact their finances this year, and more than four in 10 (44%) rank inflation as the #1 obstacle to achieving financial security.

For the second year in a row, more than half (52%) of Americans believe their household income is growing slower than inflation. That’s more than four times greater than the 11% who say their income is growing faster than inflation, while three in ten (28%) believe their income is on pace with inflation. 

Inflation is impacting everyone, including the wealthy. Only 1 in 5 (19%) millionaires in America – with more than $1 million in investable assets – say their income is growing faster than inflation. One in four (40%) millionaires say it’s growing slower and 38% say it’s growing the same as inflation.

Expectations for inflation in 2025	U.S. Adults		Household income vs. inflation	U.S. Adults		Top concerns regarding factors that could impact finances in 2025	U.S. Adults
Increase	51%		Growing slower	52%		Inflation	65%
Decrease	25%		On pace	28%		Taxes	37%
Stay the same	24%		Growing faster	11%		Housing costs	32%
			Not sure	9%		Interest rates	27%
						Potential recession	21%

 

Greatest obstacles to achieving financial security	U.S. Adults
Inflation	44%
Lack of savings	25%
The economy	22%
Personal debt	22%
Taxes	22%

Feeling the sting

Inflation is hitting people everywhere – from the grocery aisle, to the gas pump, to their childcare expenses and more.

A large majority (84%) of Americans say they have experienced elevated grocery costs in the last three months. Nearly seven in ten (68%) experienced elevated utility costs, while 60% experienced elevated gas costs, 52% experienced elevated housing expenses and 15% experienced elevated childcare expenses. When considering responses solely from Gen Z and Millennial parents, the childcare price sting percentage jumps to 36%.

Among those who have experienced elevated costs, many say they are having a “large impact” on their finances.

Elevated costs	Large impact on finances
Childcare expenses	48%
Housing expenses	45%
Groceries	43%
Utilities (water, electric, phone, internet, etc.)	34%
Gas	33%

Major Millennial milestone: Medical debt surpasses college loans in list of top sources of debt

For the first time in the history of the Northwestern Mutual Planning & Progress Study, when Millennials were asked for their top sources of debt, college debt did not appear in their top three. Instead, a new financial foe has emerged: medical debt.

Across all Americans the primary source of non-mortgage debt by far is credit cards, accounting for more than double the #2 source (car loans) and nearly quadruple the #3 source (medical debt). Notably, medical debt replaced personal student debt in the top three this year with every generation except for Gen Z ranking it as a bigger source of debt than personal education loans.

Main Sources of Debt	U.S. Adults	Gen Z	Millennials	Gen X	Boomers+
Credit card bills	31%	22%	35%	35%	30%
Car loan	13%	10%	13%	14%	13%
Medical debt	8%	8%	11%	8%	6%
Personal education loans	7%	16%	10%	5%	1%
Educational expenses for children/family members	4%	5%	5%	6%	2%
Caring for loved ones	4%	5%	5%	6%	2%

The study also found that for the second year in a row, 64% of adults say they prioritize paying down debt versus 36% who prioritize saving. This continues a three-year trend whereby U.S adults are focusing on debt with greater urgency than saving.

U.S Adults	2022	2023	2024	2025
Prioritize saving money	43%	39%	36%	36%
Prioritize paying down debt	57%	61%	64%	64%

Americans' non-mortgage personal debt in 2025 came down from last year. Among those who carry personal debt, the average amount people owe is $21,500 – down from $22,713 in 2024 and a 19% decrease from 2020 debt levels.

Americans' Personal Debt, Exclusive of Mortgages
2025	$21,500
2024	$22,713
2023	$21,800
2022	$22,354
2021	$23,325
2020	$26,621

‘Spend Z’

Despite concerns about college loans and credit card debt, Gen Z stands out among generations for their plans to spend in 2025.

The majority of U.S. adults expect to spend the same (34%) or more (29%) on non-essential discretionary purchases this year compared to last year, with one-third (34%) expecting to spend less.

Gen Z, however, has bigger spending plans in mind – 40% expect to spend more in 2025 than they did in 2024, well ahead of other generations.

Discretionary spending in 2025 vs. 2024	U.S. Adults	Gen Z	Millennials	Gen X	Boomers+
More	29%	40%	34%	26%	19%
The same	34%	26%	27%	34%	44%
Less	34%	29%	33%	37%	33%
Unsure	3%	5%	6%	3%	4%

The good news, however, is that Gen Z is also the most likely generation to report that their income is growing faster or on par with inflation.

Is your household income growing faster, slower or is it on pace with inflation?	U.S. Adults	Gen Z	Millennials	Gen X	Boomers+
Faster	11%	17%	14%	10%	5%
Slower	52%	40%	50%	56%	59%
On pace	28%	28%	27%	27%	31%
Not sure	9%	15%	9%	7%	5%

Home ownership feels out of reach for many Americans, and younger generations feel priced out

Among Americans who are not currently homeowners, over half (53%) say that owning a home will never be financially affordable – now or in the future.

Among generations, non-homeowner Millennials (58%) are the most likely to say that owning a home is not an affordable goal, followed by Boomers+ (52%), and Gen X (51%). Non-homeowner Gen Z’ers (49%) indicate the most optimism that, someday, they’ll be able to afford a home.

When digging into the reasons why non-homeowners feel that owning a home is not an affordable goal, however, the study reveals that Gen Z and Millennials have some financial obstacles to overcome. Given the current interest rate environment and the competitive housing market, the youngest U.S. adults feel priced out of owning a home.

Reasons why non-homeowners think owning a home is not an affordable goal	U.S. Adults	Gen Z	Millennials
I don't have enough saved for a down payment	64%	68%	61%
Mortgage rates are too high	48%	56%	50%
The housing market is too competitive and I am therefore priced out	43%	55%	38%

Recession fears recede as financial discipline improves

While concerns over inflation and home ownership weigh on people’s minds, the study also reveals some bright spots in how people are feeling about the U.S. economy and their personal financial situations.

Expectations that the U.S. economy will enter into a recession over the next year continue to decline – from 67% of U.S. adults believing the country would enter recession in 2023, to 54% in 2024 to 48% this year. In particular, older adults are feeling better about the direction of the U.S. economy, whereas the majority of younger people still expect recession is coming.

Expectations that the economy will enter into a recession in the next year
	U.S. Adults	Gen Z	Millennials	Gen X	Boomers+
2025	48%	62%	56%	45%	36%
2024	54%	62%	59%	53%	48%
2023	67%	74%	72%	70%	60%

The study finds that just over four in ten (44%) U.S. adults indicate they feel financially secure, which is a slight increase from the 41% who said the same last year but remains lower than the 50% recorded in 2023.

Meanwhile, three in ten (30%) Americans say they do not feel financially secure. This is a modest improvement over the 33% who said the same last year. But notably, last year’s number represented the highest level of financial insecurity recorded in the study’s history. The Northwestern Mutual Planning & Progress Study started in 2009 and began measuring financial security using its current methodology in 2012.

Americans have improved their financial discipline year-over-year. Today, half (49%) of U.S. adults consider themselves to be ‘disciplined planners.’ This is an improvement over the 45% who said the same last year, and reverses what was a steep five-year decline in financial discipline going back to 2020.

U.S Adults who consider themselves “disciplined” financial planners
2020	65%
2021	60%
2022	59%
2023	50%
2024	45%
2025	49%

Gen Z (52%) and Millennials (50%) consider themselves more disciplined than Gen X (47%) and Boomers+ (47%). American millionaires, Black/African Americans and Latino Americans also stand out for their financial discipline.

2025	Consider myself a “disciplined” planner	Consider myself an “undisciplined” planner
All	49%	51%
Gen Z	52%	48%
Millennials	50%	50%
Gen X	47%	53%
Boomers+	47%	53%
Millionaires	76%	24%
Black/African Americans	53%	47%
Latino Americans	52%	48%
White Americans	46%	54%

Belief in the American Dream is low… and possibly changing

Just over half of U.S. adults (53%) believe the American Dream is alive and well, and less than half (48%) believe it is attainable for most Americans. People are more optimistic about their personal situations, with 68% considering the American Dream attainable for themselves. 

But there is some evidence the vision of the American Dream is shifting. While nearly three-quarters of adults (72%) say that home ownership is essential for building wealth, two-thirds (65%) believe it is possible to achieve financial security without owning a home. For Gen Z, the number is lower – 59%.

About The 2025 Northwestern Mutual Planning & Progress Study |
The 2025 Planning & Progress Study was conducted by The Harris Poll on behalf of Northwestern Mutual among 4,626 U.S. adults aged 18 or older. The survey was conducted online between January 2 and January 19, 2025. Data are weighted where necessary by age, gender, race/ethnicity, region, education, marital status, household size, household income, and propensity to be online to bring them in line with their actual proportions in the population. A complete survey methodology is available.

Read the News Release
Read the 2025 Planning and Progress Study - The Financial States of America
Read the Local Market Data Report