A new report from Northwestern Mutual sheds light on why many people plan to rely on their parents when it comes time to retire. A whopping 69 percent increase, according to Northwestern Mutual’s 2025 Planning and Progress Study a generation Say they’re counting on inheritance money finance their golden years.
However, it seems that only a small portion of those people expect to receive money from their parents, which shows how uncertain the lives of an entire generation are. retirement plans Seems like
69 percent of Millennials say inheritance is ‘important’ to their retirement plans
A whole generation of people are expecting mom and dad to leave them a fat bank account When they die, according to Northwestern Mutual’s 2025 Planning and Progress Study. People interviewed as part of the survey said heritage would be an “important” or “extremely important” part of them retirement plan, which was significantly higher than the 57 percent who said the same across all age groups.
However, there is a hitch in this plan for many, as only 26 percent of Millennials think they will actually get any money. This is down from 32 percent in the 2024 study.
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Americans think they will need $1.26 million in retirement
Millennials who are expecting some help from their parents when the good times come may be surprised by how much money they’ll need. According to the study, Americans believe $1.26 million is the magic number for retirement, and depending on when they start saving, they’ll have to amass a lot of money to get there in time.
For example, Northwestern Mutual says that a person who starts saving at age 20 will need to put away just $330 per month to reach that goal, while a person who doesn’t start saving until age 50 will need to put away $3,958 per month. When you consider that Millennials are born between 1981 and 1996, we fall somewhere in the middle, between the ages of 30 and 45.
According to the study, this means this generation will need to start investing $695 to $1,547 per month to save enough to retire without mom and dad’s help. As many of us currently know in this age range, this is almost impossible to do. So, what does this mean for Millennials with no other retirement prospects? According to RBC Wealth Management, you should start doing everything you can as soon as possible.
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Wealth management company says it’s better grab a bigger piece At an earlier age so that you can take advantage of compound interest. So, even if you don’t have much right now, start some Today It may be more beneficial to wait until you are more financially secure.
Additionally, the wealth management company says you should max out your company whenever possible, then use whatever you have left to deal with debts like student loans. Although it may not seem like it will all add up over time, especially if you are able to overcome these things starting now, it seems that even a little bit can make a big difference if you start early enough.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
This story was originally published by parade On May 27, 2026, where it first appeared news Section. add parade as Favorite source by clicking here.