Most People Aren’t Financially Independent Until Age 37

Financial independence is a milestone that many Americans used to achieve in their early adult years. However, a new study conducted by Northwestern Mutual’s 2026 Planning & Progress Study suggests that financial independence is arriving much later for many individuals, particularly among Gen Zers and millennials.

According to the study, about 72% of Gen Zers and 53% of millennials still consider themselves financially dependent on their parents. This trend indicates that young adults are relying on family support for a longer period of time, with the average age of financial independence now being 37 years old.

There are several factors contributing to the delay in achieving financial independence. More than half of the survey respondents believe that it is harder to become financially independent today than it was for previous generations. Economic pressures such as high housing costs, student loan debt, and inflation are major obstacles that young adults face.

The median age of first-time homebuyers reached a record high of 40 in 2025, as high home prices and mortgage rates continue to make homeownership unattainable for many younger Americans. Housing costs, in particular, are cited as the biggest factor delaying financial independence by certified financial planner Bobbi Rebell.

Additionally, the burden of student loan debt, which totals approximately $1.7 trillion collectively, further complicates the financial situation for many young adults. Student loan debt not only delays homeownership but also hinders the ability to save, invest, and achieve financial stability.

As a result, traditional milestones such as moving out, buying a home, and becoming self-sufficient are happening later in life, if at all. The linear progression of adulthood has been disrupted, and more parents are extending financial support to their adult children well into their twenties and thirties.

In conclusion, the journey to financial independence has become more challenging for young adults today. Economic factors such as high housing costs and student loan debt are significant barriers to achieving financial autonomy at a younger age. As a result, many Americans are finding themselves dependent on their parents for a longer period of time before they can truly claim financial independence.