10% of Young Adults Delay Family Plans Over Cost Uncertainty

Roughly 10% of Generation Z and Millennial adults are delaying the start of a family because they are unsure how to afford it, according to new research from Northwestern Mutual. The study indicates that uncertainty regarding long-term finances is a primary barrier for this demographic. Kate Michaels, a managing partner at Northwestern Mutual, stated that monetary concerns are pushing family plans into the future while biological timelines continue to progress.

Many couples facing infertility consider in vitro fertilization, a process Michaels described as both emotionally and financially overwhelming. She noted that planning for such a procedure involves more than just the cost of a single cycle. Patients often must account for monitoring appointments and medical exams that occur before the main procedure takes place.

Michaels advised couples to consider the potential need for fertility treatments when entering a relationship. She emphasized that individuals do not need to know if they will require treatments before speaking with a financial advisor. An early conversation can help partners prepare for a wide range of potential costs that may arise.

The financial advisor can help identify what insurance policies cover and what they exclude. This review allows couples to see where out-of-pocket expenses, such as travel or extra procedures, might occur. Knowing these gaps enables partners to determine how much money to set aside as a reserve.

Michaels said that partnering with an advisor provides peace of mind during a process that is already physically and emotionally taxing. She argued that couples should not have to manage financial anxiety while navigating the stress of fertility treatment. The goal is to reduce the financial burden on partners who are already dealing with the physical demands of the process.

The research from Northwestern Mutual highlights that financial planning is a practical tool for those considering family formation. By addressing potential costs early, individuals can make decisions based on their financial reality rather than uncertainty. The data suggests that a clear financial strategy can remove a major obstacle for young adults who wish to start a family.