Northwestern Mutual: Plan finances before starting family

Northwestern Mutual released a report on Monday stating that roughly 10% of Gen Z and Millennial adults are delaying childbearing due to financial uncertainty. The firm identifies the rising cost of family formation as a primary factor influencing these long-term personal decisions.

Kate Michaels, a managing partner at Northwestern Mutual, noted that financial concerns often compete with biological timelines. She explained that many couples face the decision of whether to pursue in vitro fertilization, a process she described as both emotionally and financially intensive. The cost of IVF often extends beyond the main procedure to include necessary monitoring appointments and medical examinations.

Michaels advised couples to discuss potential fertility costs before entering a relationship or when planning for a child. She emphasized that planning must account for the full scope of treatment, not just the final cycle. "It’s not like you can only plan for an IVF cycle. 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," she said. "So, I think it’s really important that couples think about the fact that they may experience the need for fertility treatments going into a relationship."

The firm suggests that couples consult a financial advisor early, even if they are not yet certain they will need treatment. This initial conversation allows advisors to map out a range of potential expenses. Michaels stated that this preparatory step reduces stress during what is often a physically demanding period. "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," she said.

Michaels added that financial anxiety can strain relationships during treatment. She said, "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."

To prepare, couples should review their insurance coverage immediately to identify gaps in benefits. Understanding what the policy excludes helps them budget for out-of-pocket costs such as travel or additional procedures. This analysis allows individuals to determine an appropriate amount to set aside in a dedicated fund.

The report serves as a guide for younger generations entering their prime childbearing years. It outlines specific steps for integrating fertility planning into standard financial planning strategies.