60% of young adults say COVID-19 derailed financial independence: Survey
46% say they have had to move back in with their parents
Nearly 60% said their financial independence has been completely derailed by the COVID-19 pandemic, a new survey from TD Ameritrade shows.
They join an increasing number of young adults are concerned about their financial future. Even prior to the pandemic, just over 61% admitted they were already stressed out by their finances and now it's even harder to project what their financial future will look like, the findings show.
"The COVID-19 crisis has intensified a sense of anxiety that young adults were already feeling about their ability to become financially independent," Keith Denerstein, director of investments and guidance at TD Ameritrade, told FOX Business.
As a result of the recent economic downturn, 69% said they expect to delay some life milestones. And 48% have put their plans for starting a family on hold, 46% said they have had to move back in with their parents.
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What's more, 71% fear their generation won't survive the financial downturn without governmental support.
However, "anxiety trumps obliviousness, and we see young Americans taking the necessary steps to set themselves up for a bright financial future," Denerstein said. "They realize that this means making sacrifices, including in some cases moving back home with their parents. They don’t feel shame relying on their families for financial support, particularly if it enables them to get closer to realizing financial independence."
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The results came just as government support to help families weather the pandemic has come to an end, potentially putting a further strain on the over 55 million Americans who have sought aid since the shutdowns began earlier this year.
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Millennials, who have been hit with rising living costs and student loan debt, in particular, feel that the odds are against them, the survey showed.
However, 82% of millennials and 87% of Gen Zers -- the oldest of which are about 24 years old -- crave financial independence, a sentiment that is reiterated by 89% of millennial parents and 83% Gen-Z parents.
Many respondents have admitted that they are still trying to seek that independence, with two-thirds said they are trying to forge their own path.
For the results, TD Ameritrade conducted two separate surveys with The Harris Poll. More than 2,000 Americans ranging in age from 15 to 29 years old were surveyed from Feb. 20 to March 4. An additional 691 Americans in the same age range were then surveyed from April 10-16.