69% of This Generation Claims They Are Relying on an Inheritance to Fund Their Retirement- Here's Why That's a Dangerous Strategy
A new report from Northwestern Mutual highlights that many people plan to rely on their parents when it comes time to retire. According to Northwestern Mutual's 2025 Planning & Progress Study, a whopping 69 percent of one generation say they are relying on inheritance money to fund their golden years.
However, it sounds like only a small portion of those people expect to see any money from their parents, suggesting just how precarious an entire generation's retirement plans seem to be.
69 Percent of Millennials Say Inheritance is 'Critical' to Their Retirement Plans
An entire generation of people is hoping that mom and dad leave them a fat bank account when they die, according to Northwestern Mutual's 2025 Planning & Progress Study. Those interviewed as part of the survey said that inheritance would be a "critical" or "highly critical" part of their retirement plan, which was significantly more than the 57 percent who said the same across all age groups.
However, there is a hiccup in this plan for many, since only 26 percent of Millennials think they will actually receive any money. That's down from 32 percent in the 2024 study.
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Americans Think They'll Need $1.26 Million in Retirement
Those Millennials hoping to get some help from their parents when it's time to clock out for good may be surprised by how much money they'll need. According to the study, Americans believe that $1.26 million is the magic number for retirement, and depending on when they start saving, they'll have to sock away a lot of money to get there in time.
For example, Northwestern Mutual says someone who starts saving in their 20s will only need to put away $330 a month to hit that target, while someone who doesn't start saving until their 50s will need to put $3,958 away a month. When you consider that Millennials were born between 1981 and 1996, we fall somewhere in between, at 30 to 45 years old.
According to the study, this means that this generation would need to start putting away $695 to $1,547 a month to save up enough to retire without help from mom and dad. As many of us currently in this age range know, that's next to impossible to do. So, what does that mean for Millennials with no other retirement prospects? According to RBC Wealth Management, you should start doing whatever you can as early as possible.
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The wealth management company says it's better to sock away a large chunk at an earlier age so that you can take advantage of compounding interest. So, even if you don't have much of a nest egg right now, starting something today can be more beneficial than waiting until you're more financially secure.
Additionally, the wealth management company says you should max out your company match whenever possible, then use whatever you have left to tackle debts like student loans. While it may not seem like all of that will add up over time, especially if you're only able to chip away at these things starting right now, it sounds like 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.
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This story was originally published May 27, 2026 at 3:42 AM.