Financial pressures are reshaping the life plans of younger Americans, according to the 2026 Planning & Progress Study from Northwestern Mutual, conducted by The Harris Poll among 4,375 U.S. adults. The research reveals that 72% of Gen Z respondents have delayed at least one major life milestone—such as buying a home, starting a family, or getting married—due to economic constraints, while 56% of millennials report similar delays. More strikingly, 71% of Gen Z and 60% of millennials worry they may never afford certain life goals at all.
Homeownership remains the most commonly deferred milestone. Among Gen Z, 31% have postponed buying a home, and 34% fear it may never become affordable. Millennials show a slight improvement in optimism: 42% of non-homeowners now believe homeownership is or will become achievable, up from 33% a year earlier. Gen Z optimism also rose, from 42% to 54% over the same period. Down payment concerns, while still significant, have eased—53% cite them as a barrier, down from 64% in 2025. Mortgage rate anxiety has also softened, with 40% calling rates prohibitively high (down from 48%), and competition concerns dropped from 43% to 38%.
For advisors, these trends underscore a growing need to integrate homeownership planning into client conversations, especially for clients in their 20s and 30s who are also grappling with student debt. The study suggests that younger clients are not just focused on retirement but are seeking guidance on near-term financial decisions like whether to buy a home now or later, and how to factor family-related costs into long-term plans.
Beyond housing, family formation is also being postponed. Among Gen Z, 24% have delayed parenthood and 20% have put off marriage. For those who are already parents, more than 70% of Gen Z and millennial respondents say they spend as much or more on their children each month as they do on rent or mortgage payments—a burden that compounds the overall squeeze. Education costs are another deferred obligation, with 26% of Gen Z reporting delays in education-related spending.
Economic anxiety is further fueled by uncertainty about the future of work. Forty-six percent of Gen Z are pessimistic about how artificial intelligence will affect their career prospects, compared with 32% of millennials. This unease may be discouraging younger Americans from making long-horizon financial commitments, as the nature of employment feels increasingly unpredictable.
Despite these headwinds, there are signs of proactive financial engagement. Twenty-four percent of Gen Z and 25% of millennials sought professional financial advice for the first time in the past year, indicating a growing demand for guidance. This aligns with broader trends showing that younger investors are increasingly turning to advisors who understand technology and can address their specific concerns.
The study also highlights generational differences in saving behavior. Gen Z begins saving for retirement at an average age of 22, six years earlier than millennials, who start at 28. Gen Z targets retirement at age 61. However, early saving has not translated into confidence: 42% of Gen Z express concern about retiring comfortably, and the share feeling prepared for retirement slipped from 63% to 58% between 2025 and 2026.
Nationally, Americans now believe they need $1.46 million to retire comfortably, up $200,000 from 2025, with high-net-worth individuals estimating $2.67 million. Yet 46% of non-retirees say they do not expect to be financially prepared when retirement arrives. The data points to a clear advisory opportunity: Americans who work with a financial advisor retire an average of 2.4 years earlier (63.7 vs. 66.1) and are significantly more likely to feel financially secure (71% vs. those without guidance).
For advisors, the entry point with younger clients may not be retirement planning alone. It could be a conversation about the timing of a home purchase, the cost of raising children, or how to prioritize competing financial goals. As the study notes, the cohort of first-time advice seekers represents a significant opportunity for advisors to build lasting relationships by addressing these immediate, tangible concerns.
