Fertility Costs: Why Young Couples Are Delaying Parenthood

A growing number of young adults are pausing plans to start families due to financial uncertainty, with new research from Northwestern Mutual finding that 10% of Gen Z and Millennials are delaying parenthood because they are unsure how they would afford it. Kate Michaels, a managing partner at Northwestern Mutual, stated that money is pushing family plans down the road while another clock keeps ticking in the background: fertility.

The delay often stems from the complex costs associated with fertility treatments. When a couple faces infertility, many end up considering in vitro fertilization, which Michaels said can be emotionally and financially overwhelming. Planning for this process involves more than a single procedure, as there are additional medical steps that must be accounted for before the main cost is incurred.

Michaels noted that couples should consider the possibility of needing fertility treatments when entering a relationship. She explained that it is not possible to plan for only an IVF cycle, as there may be monitoring appointments and medical exams required before the bigger cost is incurred. "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," she said.

Couples do not need to know whether they will need fertility treatments before talking to a financial advisor. An early conversation can help them prepare for a wide range of costs that may come up. Michaels recommended reviewing insurance coverage as early as possible to understand what it will and will not cover. This step can show where out-of-pocket costs, such as travel or extra procedures, may need to be budgeted.

With that picture in hand, couples can have some idea of how much to start setting aside, just in case. For Michaels, the benefit of this preparation goes beyond the numbers. "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. She added that the last thing a person wants to be doing with their partner is feeling that financial anxiety.

The research suggests that proactive financial planning can alleviate the stress of potential fertility issues. By understanding insurance limitations and estimating out-of-pocket expenses, individuals can make more informed decisions about their long-term financial health. The data provides a clear link between financial uncertainty and the timing of family formation for younger generations.