Purse Strings Aren't Quite Snipped for Gen X, Millennials

Key Points:

• A significant number of Gen Xers (one-third) and millennials (over half) remain financially dependent on their parents, with 42% of adults overall reporting some level of financial reliance, including 72% of Gen Z.
• Baby boomers currently hold about half of the US household wealth, approximately $90 trillion, with an estimated $124 trillion expected to be transferred to younger generations by 2048 in what is called the "Great Wealth Transfer."
• Despite this anticipated wealth transfer, it is neither guaranteed nor immediate, as many Americans live longer, incur higher long-term care costs, and most inheritances occur later in life, often after age 50, with fewer than 40% inheriting at all.
• Younger adults face increased financial challenges such as higher mortgage debts, larger student loans, and rising living expenses, leading 44% to receive parental support for basic needs like groceries and utilities.
• Over one-third of parents providing financial help report it strains their own finances, while a similar proportion express concern that their children may not achieve full financial independence.