Northwestern Mutual research links financial stress to delayed family plans

Approximately 10% of Generation Z and Millennial adults are delaying the decision to have children due to financial uncertainty, according to new research released by Northwestern Mutual. The study identifies cost concerns as a primary factor in these postponements.

The research highlights a growing disconnect between financial planning and biological timelines. Kate Michaels, a managing partner at Northwestern Mutual, noted that financial pressures are pushing family plans to a later date. She described the situation as a race against time, where the clock on fertility continues to tick in the background while individuals assess their bank accounts.

For those who face infertility, in vitro fertilization often becomes a necessary option. Michaels described the process as both emotionally and financially overwhelming. She emphasized that the cost extends beyond the main procedure. "It’s not like you can only plan for an IVF cycle," Michaels said. "There may be monitoring appointments and medical exams that you need to account for before you even get to this bigger cost that you might be incurring."

Michaels advised that couples consider the potential need for fertility treatments when entering a relationship. She stated that financial conversations do not require a diagnosis of infertility to be useful. An early discussion with a financial advisor allows partners to prepare for a wide range of potential expenses.

The financial advisor plays a role that extends beyond simple budgeting. "That’s where I think the partnering with a financial advisor gives a lot of peace of mind, because again, it’s already such an emotional, emotionally taxing and physically taxing process," Michaels said. She added that removing financial anxiety is essential during such a demanding time. "The last thing that you want to be doing with your partner or even yours if you’re going through this process alone or with a significant other, is to be feeling that financial anxiety."

Practical steps include reviewing insurance coverage as early as possible. This review helps identify what the plan covers and what it does not. It can reveal where out-of-pocket costs, such as travel or additional procedures, may need to be budgeted separately.

With a clear understanding of these costs, couples can determine how much to set aside. This preparation provides a financial baseline for potential future treatments.