This is the age when life starts to feel ‘real’ for Americans

The age where life, money and the future start to feel “real” is officially 27, according to a new study.

A recent survey of 2,000 Americans evenly divided by generation (500 Gen Z, 500 millennials, 500 Gen X and 500 baby boomers) found that being an “adult” doesn’t automatically start the day you turn 18.

Today, a majority believes the definition of “adulting” is simply paying your bills (56%). Others say being financially independent (45%) and placing responsibilities over their personal life or entertainment (38%) are key indicators of entering your adulthood.

In fact, moving out of their parents’ or guardians’ home (46%) and landing their first career job or a job in their chosen field (28%) are two of the top events that made Americans feel as an adult.

However, 11% of Gen Zers don’t feel like adults.

The survey, conducted by Talker Research on behalf of Life Happens, explored the highs and lows of Americans, especially when it comes to finances, as well as the advice of older generations to the younger generation.

The results found that Americans start getting serious about their finances around age 28, and overall, older generations want to get more serious about their finances in their 20s (76%).

In terms of getting a credit card, budgeting and opening a savings account, millennials were ahead of schedule by age 28 and had done all three before that age, with Gen X and baby boomers also opening savings accounts at an age average 26 years old.

Millennials arrived at the right time and bought life insurance at an average age of 28, although Gen X and baby boomers were both in their 30s (33 and 34, respectively).

Interestingly, Gen Z is way ahead of the curve in terms of paying their own bills, getting a credit card, learning to budget and opening a savings account (around age 22).

However, more than half (53%) have never contributed to their 401(k) or retirement plan, and another 49% have yet to purchase life insurance.

The good news is that Gen Z is already taking a lot of the financial advice from older generations: start saving early (64%), create a budget (46%) and start building credit as soon as you can (41%) .

The bad news is that the next two biggest pieces of advice — contribute to your retirement fund (34%) and get life insurance while you’re young and healthy (18%) — are falling by the wayside.

Nearly two in five Americans (39%) feel they are not currently financially stable. And while Americans hope to be stable by age 46, 41% of those surveyed don’t believe they’ll ever achieve financial stability.

This was at least as true for Gen Z, as only 7% don’t believe they’ll ever be financially stable, though that number grows exponentially with each generation: 30% of millennials don’t believe they’ll ever be financially stable stable. , along with 53% of Gen X and 66% of baby boomers.

At the end of the day, 42% of all respondents found that being an adult is harder than they expected.

“While it’s troubling to see that so many young people aren’t contributing to retirement or buying life insurance, it’s never too late to start making these moves,” said Kevin Mayeux, CEO of the National Association of Insurance and Financial Advisors. “More than half (56%) of all Americans surveyed have never worked with a financial professional. Working with someone experienced and trained in financial management can help you not only feel more secure today, but for years to come.

The survey also asked Gen Zers what is the top thing they want older generations to know or hear when it comes to finances. One respondent said, “the economy is at a point where having financial security feels impossible and not worth achieving.”

Others said, “I would stress the importance of understanding and adapting to the rapid changes in financial technology” and “buying a home is not as financially attainable at this time.”

Overall, the majority of Gen Z (81%) feel pressure to be more “ahead” financially than they currently are.

The survey also asked Americans some hypothetical questions and found that finances are certainly top of mind. If given an extra $1,000, most (60%) would put it all in their savings account. Another 14% are just as likely to put that money into their 401(k) or go on a nice vacation.

However, Americans would rather spend $15 a month on life insurance (59%) than spend the same amount on a standard Netflix subscription (23%).

“The struggles and anxieties of Gen Z, coupled with the fact that 71% of Americans surveyed believe that being an adult is harder today than it was 10 years ago, really underscores the importance of being financially prepared for whatever the future may hold,” Brain said. Steiner, CEO at Life Happens. “Expenses are rising, wages are stagnating and hope is diminishing. While the future is unpredictable, your financial stability shouldn’t be preparing for the future with life insurance.”

Survey methodology:

Talker Research surveyed 2,000 Americans evenly divided by generation (500 Gen Z, 500 Millennials, 500 Gen X and 500 Baby Boomers); The survey was commissioned by Life Happens and administered and conducted online by Talker Research from August 12 to August 16, 2024.