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Retirement Planning > Spending in Retirement > Lifestyle Planning

Younger Americans Are Choosing Financial Security Over Parenthood: Survey

By Michael S. Fischer

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What You Need to Know

  • About a quarter of millennials and Generation Z without children do not plan to become parents, a MassMutual survey found.
  • Financial factors are the biggest driver of this decision, according to the survey.
  • More than half of parents of kids under 18 said they worried about having enough money to support their family.

Few would disagree that starting a family puts a financial strain on new parents. Today, many younger Americans are taking that to heart and opting to continue their childfree lives, according to MassMutual’s latest Consumer Spending & Saving Index.

MasMutual’s third-quarter survey found that 23% of millennials and Generation Z without children do not plan to become parents. The most common motivations for remaining childfree are a preference for the financial freedom that comes from not having children and the inability to afford children.

Thirty-one percent of both generations say they do not plan to become a parent because of the social and political world their children would inherit.

“With today’s financial stressors, it is understandable why there is a growing trend among young adults to prioritize financial security over parenthood,” Paul LaPiana, MassMutual’s head of brand, product and affiliated distribution, said in a statement. “This shift reflects a broader understanding of the importance of financial stability and independence in achieving long-term goals that every generation must reckon with.” 

PSB Insights conducted the online study in July among a nationally representative sample of 1,000 U.S. adults. Within the same timeframe, the firm polled an additional sample of 500 adult Massachusetts residents. 

Other Index Results

The research found that 73% of respondents with chidren under 18 took steps to financially prepare for parenthood, most commonly by increasing savings. Still, 51% worry that they will not have enough money to support their family. They report that food and clothing are their biggest child-related expenses.

Forty-seven percent of parents who are sending their children to college this year anticipate higher spending compared with last year, up considerably from just 29% who said this in 2023. Rising tuition costs and inflation are the chief culprits.

A majority of respondents said they expect to pay off their student loans before retirement. Sixty percent aim to do so before their older child turns 18, up from 43% last quarter.

Forty-eight percent of non-retired survey participants doubted that they have enough savings to retire by their desired age. Fifty-five percent of Gen Zers believe that they are behind.

Half of non-retired respondents are contributing 6% or less of their income toward retirement, the research showed. Nearly half of Gen Zers do not contribute a fixed amount monthly, and a quarter contribute nothing at all.

As the U.S. presidential election approaches, 13% of Americans said the election will have the biggest effect on their personal finances, second only to inflation. This is up from 8% last quarter and 6% in the same period last year. Democrats and Republicans express these apprehensions in similar proportions.

Twenty-six percent of respondents said their personal finances are the most important issue when deciding whom to vote for in November, with no significant differences between Republicans and Democrats. Thirty-eight percent said they will consider their personal finances when they vote.

Michael S. Fischer

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