At what age does life get real?

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

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

Today, a majority believe that the definition of “adulting” is simply paying your own bills (56%). Others say that being financially independent (45%) and putting responsibilities over their personal life or having fun (38%) are key markers of entering your adulthood era.

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

Still, 11% of Gen Zers don’t feel like an adult.

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

Results found Americans start to take their finances seriously around the age of 28, and across the board, the older generations wish they’d taken their finances more seriously in their 20s (76%).

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

Millennials came in at the nick of time and purchased life insurance at an average age of 28, though Gen X and baby boomers were both in their 30s (33 and 34, respectively).

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

Yet still, more than half (53%) haven’t ever 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 much of the older generations’ financial advice: 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.

Almost two in five Americans (39%) feel that they are not currently financially stable. And while Americans are hoping that they’ll be stable by the age of 46, 41% of those respondents don’t believe that they’ll ever achieve financial stability.

This was least true for Gen Z, as only 7% don’t believe that they’ll ever be financially stable, though that number increases exponentially with each generation: 30% of millennials don’t believe they’ll ever be financially 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 it to be.

“While it’s concerning to see that so many young people are not contributing to their retirement or purchasing life insurance, it’s never too late to start making those moves,” said Kevin Mayeux, the 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 who is experienced and trained in managing your finances can help you not only feel more secure today, but also for years to come.”

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

Others said, “I'd emphasize the importance of understanding and adapting to the rapid changes in financial technology” and “buying a house is not as financially achievable 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 a few hypothetical questions and found that finances are certainly top of mind. If they were given an additional $1,000, the majority (60%) would put it all in their savings account. Another 14% are equally likely to put that money into their 401(k) or to go on a nice vacation.

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

“Gen Z’s struggles and anxieties, paired 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 might hold,” said Brain Steiner, Executive Director at Life Happens. “Costs are rising, salaries are staying stagnant and hope is decreasing. While the future is unpredictable, your financial stability doesn’t have to be by preparing for the future with life insurance.”

Survey methodology:

Talker Research surveyed 2,000 Americans split evenly 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 between August 12 to August 16, 2024.

We are sourcing from a non-probability frame and the two main sources we use are:

• Traditional online access panels — where respondents opt-in to take part in online market research for an incentive
• Programmatic — where respondents are online and are given the option to take part in a survey to receive a virtual incentive usually related to the online activity they are engaging in

Those who did not fit the specified sample were terminated from the survey. As the survey is fielded, dynamic online sampling is used, adjusting targeting to achieve the quotas specified as part of the sampling plan.

Regardless of which sources a respondent came from, they were directed to an Online Survey, where the survey was conducted in English; a link to the questionnaire can be shared upon request. Respondents were awarded points for completing the survey. These points have a small cash-equivalent monetary value.

Cells are only reported on for analysis if they have a minimum of 80 respondents, and statistical significance is calculated at the 95% level. Data is not weighted, but quotas and other parameters are put in place to reach the desired sample.

Interviews are excluded from the final analysis if they failed quality-checking measures. This includes:

• Speeders: Respondents who complete the survey in a time that is quicker than one-third of the median length of interview are disqualified as speeders
• Open ends: All verbatim responses (full open-ended questions as well as other please specify options) are checked for inappropriate or irrelevant text
• Bots: Captcha is enabled on surveys, which allows the research team to identify and disqualify bots
• Duplicates: Survey software has “deduping” based on digital fingerprinting, which ensures nobody is allowed to take the survey more than once

It is worth noting that this survey was only available to individuals with internet access, and the results may not be generalizable to those without internet access.