A majority of Americans in a new survey believe that it’s critical to get professional financial advice between the ages of 25 and 39 in order to ensure long-term financial security, Northwestern Mutual reported Tuesday. Generation Z and millennials recognize the need and are taking action, the survey found.
Some 80% of Gen Zers and millennials said they need to improve their financial planning, and more than a quarter of each group said they have gotten advice from a financial advisor for the first time within the past year.
Their main reason for seeking advice was to build and stick to a comprehensive financial plan focused on both growing and protecting their wealth. They also wanted help in managing their investment portfolios and to plan and save for retirement.
Interestingly, 32% of millennials said that an advisor could help them better align their finances with their personal values and causes they care about the most.
The findings come from Northwestern Mutual’s 2025 Planning & Progress Study, which was conducted by The Harris Poll in January among 4,626 U.S. adults.
Affordability Concerns
Gen Zers in the survey who said they want to start a family hope, on average, to have 3.4 children. This compares with an average of 2.9 for millennials, 2.6 for Gen Xers and 2.4 for older respondents.
However, 29% of Gen Zers said that having children is their biggest affordability concern, second only to buying a house, the top concern of 46%. In comparison, 16% of millennials expressed concern about having children, and 31% said the same about buying a house.
“Our findings highlight a powerful disconnect: Younger generations want to become parents, but financial uncertainty is holding them back,” Kamilah Williams-Kemp, chief product officer at Northwestern Mutual, said in a statement. “That’s a strong takeaway and a call to action for financial advisors who are working with Gen Z and millennials today.”
Altered Timelines
According to the research, Gen Zers and millennials expect to reach a range of major financial life milestones later than their parents: getting married, buying a house, starting a family and retiring.
Their concerns about the cost of childcare are well-founded, Northwestern Mutual said. About two-thirds of Gen Zers and millennials who have at least one child reported that the amount they spend on raising children is the same or more than the cost of their rent or home mortgage.
However, when it comes to professional financial advice, Gen Zers who work with an advisor started doing so at age 23, more than two decades earlier than baby boomers. Millennials began working with an advisor at age 30, a decade earlier than Gen Xers and nearly 20 years earlier than baby boomers.
Williams-Kemp noted that younger Americans’ timelines for achieving major life milestones are being reshaped by a combination of evolving personal priorities and the country’s current economic challenges.
“By working with a financial advisor while they are still young, Gen Z and millennials can gain the tools and confidence they need to navigate their unique paths toward financial success,” she said.
Most Trusted Source of Financial Advice
The survey found that advisors continue to be the most trusted source of financial advice in the United States. Thirty-three percent of respondents said they trusted financial professionals most for advice, well ahead of the 17% who said they most trust a family member and 11% a spouse or partner.
Gen Zers stood out slightly in this regard, with 29% saying they trust a family member most and 26% saying a financial advisor.
“These results speak to the power that parents have in helping their children build financial security,” Williams-Kemp said. “If parents share their financial plans with their children and encourage them to build plans of their own with the help of an expert advisor, many more young people could free themselves from the intense financial anxiety they feel.”
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