Millennials feel forced to choose between retirement and homeownership

COLUMBUS, Ohio – Millennials are facing an unprecedented financial squeeze: a staggering 58% feel like they have to choose between homeownership and retirement security, according to a new Advisor Authority study, powered by the Nationwide Retirement Institute. As housing prices accelerate ahead of median income wage growth, Millennials face a fundamentally different financial environment than their parents did – resulting in different approaches to wealth building.

Whereas previous generations used homeownership as a tool to build wealth, many Millennials (investors ages 29-44) are struggling to afford housing and view it as a challenge to their retirement savings plan. That struggle is causing a negative view of retirement attainability in general – more than a third (35%) of Millennials cite rising housing costs as the biggest obstacle to their retirement readiness, and 46% believe mortgage or home equity loans pose the biggest threat to achieving a secure retirement.

The impact of the housing dilemma is immediate and measurable: 60% of Millennials have adjusted their retirement plans at least some since the start of 2025 in response to rising housing costs. This housing-retirement tension represents a fundamental departure from traditional wealth-building strategies, forcing Millennials to reimagine how they’ll achieve financial security in retirement without relying on real estate appreciation.

Without access to wealth through housing, Millennials are turning toward contribution plans early in their retirement journeys. Half (50%) of this cohort opened retirement accounts, such as 401(K)s or IRAs, and a quarter (22%) opened brokerage accounts to begin planning for retirement. The shift towards contribution plans also looks like more than just a temporary focus for this generation. Nearly three in ten (28%) working Millennials say they plan to contribute more to their 401(k) or employer-sponsored defined contribution plan over the next 12 months, and 23% say they plan to contribute the maximum amount eligible for an employer match.

Despite these actions, Millennials are worried about how long their savings will last in retirement. More than a fifth (22%) say they are concerned their savings won’t last more than 14 years, and one in ten (10%) say their retirement savings are already dwindling.

“Millennials are navigating their prime earning years in a financial landscape marked by volatile markets, high interest rates and shifting economic norms. These challenges are not only impacting their ability to build long-term wealth but also key life milestones like homeownership,” said Juan José Pérez, president of Nationwide Corporate Solutions. “While it’s great to see Millennial investors tapping into the benefit of retirement accounts, partnering with a trusted financial advisor can help them build on those savings, creating personalized, goal-based strategies to manage risk and prepare for major life events with confidence.”

As millennials embrace professional advice, advisors address their blind spots

The complexity of today’s financial landscape has driven Millennials to seek professional guidance at unprecedented rates. Of the 45% of Millennial investors who pay to work with an advisor or financial professional, three-fourths (75%) began doing so in the last 12 months. However, the surge in professional relationships reveals a critical gap between Millennial concerns and advisor perspectives.

While Millennials focus on immediate challenges like housing costs, advisors take a longer view. Only about one in ten (9%) advisors say housing prices and mortgage rates pose a long-term challenge to their clients’ retirement portfolios. Eight in ten (82%) advisors, however, indicate healthcare costs are an extremely/very significant factor in their Millennial clients’ ability to plan for retirement. Additionally, 35% of advisors indicate the uncertain future of government support programs (Social Security, Medicare, Medicaid) pose the most immediate challenges to clients’ retirement portfolios.

The disconnect is striking: only 13% of Millennial investors cite healthcare costs as an obstacle, and 6% consider a presumed lack of Social Security funds to be a challenge to preparing for retirement, suggesting Millennials can benefit significantly from advisors’ long-term perspective on retirement planning risks.

“It’s great to see more Millennials turn to financial professionals, and healthy for advisors to help them see beyond short-term financial goals. However, our survey data shows a disconnect, highlighting an opportunity for advisors to take a step back and ensure they are listening to Millennials’ goals and addressing their concerns before offering solutions – whether those solutions are for short-term or long-term life events,” Pérez said.

When working with Millennials, advisors should note they may be ready for more sophisticated long-term investment strategies, with six in ten (61%) Millennials saying they are likely to put part of their portfolio in an annuity or other solution that provides guaranteed income given the events of the last 12 months.

“Saving for short-term goals, like buying a house, is important, but layering that with preparation for longer-term challenges remains imperative,” said Pérez. “Advisors who can establish relationships with Millennial clients now have a tremendous opportunity to grow their practices, as this generation is just starting to build meaningful savings and looking for a partner to help guide them on that journey.”

The Nationwide Retirement Institute offers resources to help advisors facilitate conversations with Millennial clients.

For more insights on this survey data, see our infographic.

Nationwide’s 11^th annual Advisor Authority study, powered by the Nationwide Retirement Institute®, explores critical issues confronting advisors, financial professionals and individual investors—and the innovative techniques that they need to succeed in today’s complex market.

About Advisor Authority: Methodology

The Harris Poll, on behalf of Nationwide, conducted an online survey in the U. S. among 510 advisors and financial professionals and 2,007 investors ages 18+ with investable assets (IA) of $10K+, August 19-September 2, 2025. Among the investors, there were 667 Millennials (age 29-44).

Respondents for this survey were selected from among those who have agreed to participate in our surveys. The sampling precision of Harris online polls is measured by using a Bayesian credible interval.  For this study, the sample data for advisors is accurate to within ± 4.3 percentage points using a 95% confidence level. For all investors data is accurate to within ± 2.8 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].