Major Indianapolis Millennial milestone: College loans no longer among the top three sources of debt, but medical debt emerges as new and formidable financial foe.
Feelings of financial insecurity in Indianapolis remain high.
Just over half of Indianapolis adults believe the American Dream is attainable.
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INDIANAPOLIS, March 12, 2025 – Inflation continues to sting in Indianapolis, with significant numbers of local adults saying elevated prices in the grocery aisles, at the gas pump and elsewhere are having a large impact on their finances. Meanwhile, among people who don’t own a home, many say homeownership will never be affordable – not now, not ever.
At the same time, some financial trends, behaviors and concerns among adults in Indianapolis have shifted in a positive direction since last year. People are feeling more optimistic that the United States will avoid recession and they’re reporting greater financial discipline, reversing a five-year decline. And for Millennials, the burden of college debt appears to be receding – but a new financial foe is taking its place: medical debt.
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Inflation is a major concern and Americans say their household incomes are not keeping up
Northwestern Mutual’s 2025 Planning & Progress Study finds that nationally, half (51%) of U.S. adults believe inflation will increase in 2025, more than double the 25% who expect inflation to decrease and the 24% who expect it to stay the same. In Indianapolis, the outlook is more optimistic, with 47% of adults indicating they believe inflation will increase this year while only 31% believe it will decrease.
Furthermore, nearly two-thirds (64%) of Indianapolis adults say inflation is the dominant concern that could impact their finances this year.
For the second year in a row, more than half (60%) of Indianapolis residents believe their household income is growing slower than inflation. That’s nearly seven times greater than the 9% who say their income is growing faster than inflation, while one in four (25%) believe their income is on pace with inflation.
Feeling the sting
Inflation is hitting people everywhere – from the grocery aisle, to the gas pump, to their childcare expenses and more.
A large majority (89%) of Indianapolis residents say they have experienced elevated grocery costs in the last three months. Nearly three-forths (72%) experienced elevated utility costs, while 63% experienced elevated gas costs, 56% experienced elevated housing expenses and 14% experienced elevated childcare expenses.
“High prices are having a significant impact on people’s budgets, and most Indianapolis residents believe these challenges will continue to grow in 2025,” said Mark Wise, Wealth Management Advisor at Wise Financial. “Our study findings show that inflation remains top of mind for people, and they get reminded of it often with day-to-day expenses.”
Major Millennial milestone: Medical debt surpasses college loans in list of top sources of debt
For the first time in the history of the Northwestern Mutual Planning & Progress Study, when Millennials were asked for their top sources of debt, college debt did not appear in their top three. Instead, a new financial foe has emerged: medical debt.
Across all Americans, the primary source of non-mortgage debt by far is credit cards, accounting for more than double the #2 source (car loans) and nearly quadruple the #3 source (medical debt). Notably, medical debt replaced personal student debt in the top three this year with every generation except for Gen Z ranking it as a bigger source of debt than personal education loans.
“For Millennials especially it’s interesting to see medical debt bypass personal education loans as their top debt source,” said Wise. “More Millennials are now at an age when they’ve been paying down college debt but are starting to accrue medical debt. And of course, many may have benefitted from recent college loan forgiveness initiatives. Ultimately, the emergence of medical debt demonstrates the importance of insurance as part of a holistic financial plan for financial security.”
Home ownership feels out of reach for many Americans, and younger generations feel priced out
Among Indianapolis residents who are not currently homeowners, 49% say that owning a home will never be financially affordable – now or in the future.
When digging into the reasons why non-homeowners feel that owning a home is not an affordable goal, however, the study reveals that Gen Z and Millennials have some financial obstacles to overcome. Given the current interest rate environment and the competitive housing market, the youngest U.S. adults feel priced out of owning a home, even significantly more so than Millennials.
“When it comes to whether people believe they can afford to own a home, age plays a big role,” said Wise. “Gen Z individuals are still relatively young and have more time on their side to get to a place where home ownership feels attainable. While it may feel out of reach now, they’re still optimistic that things could change. On the flipside, older Millennials might feel like their window for home ownership is closing.”
The study also finds that less than four in ten (37%) Indianapolis adults indicate they feel financially secure.
Meanwhile, over one third (35%) of Indianapolis residents say they do not feel financially secure. This matches the 33% who said the same last year. But notably, last year’s number represented the highest level of financial insecurity recorded in the study’s history. The Northwestern Mutual Planning & Progress Study started in 2009 and began measuring financial security using its current methodology in 2012.
Just over half of Indianapolis adults (52%) believe the American Dream is alive and well and less than half (48%) believe it is attainable for most Americans. People are more optimistic about their personal situations, with 68% considering the American Dream attainable for themselves.
About The 2025 Northwestern Mutual Planning & Progress Study
The 2025 Planning & Progress Study was conducted by The Harris Poll on behalf of Northwestern Mutual among 4,626 U.S. adults aged 18 or older. The survey was conducted online between January 2 and January 19, 2025. Data are weighted where necessary by age, gender, race/ethnicity, region, education, marital status, household size, household income, and propensity to be online to bring them in line with their actual proportions in the population. A complete survey methodology is available.
About Northwestern Mutual
Northwestern Mutual has been helping people and businesses achieve financial security for more than 165 years. Through a comprehensive planning approach, Northwestern Mutual combines the expertise of its financial professionals with a personalized digital experience and industry-leading products to help its clients plan for what's most important. With nearly $700 billion of total assetsi being managed across the company’s institutional portfolio as well as retail investment client portfolios, more than $38 billion in revenues, and $2.4 trillion worth of life insurance protection in force, Northwestern Mutual delivers financial security to more than five million people with life, disability income and long-term care insurance, annuities, and brokerage and advisory services. Northwestern Mutual ranked 110 on the 2024 FORTUNE 500 and was recognized by FORTUNE® as one of the "World's Most Admired" life insurance companies in 2025.
Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM), Milwaukee, WI (life and disability insurance, annuities, and life insurance with long-term care benefits) and its subsidiaries. Subsidiaries include Northwestern Mutual Investment Services, LLC (NMIS) (investment brokerage services), broker-dealer, registered investment adviser, member FINRA and SIPC; the Northwestern Mutual Wealth Management Company® (NMWMC) (investment advisory and services), federal savings bank; and Northwestern Long Term Care Insurance Company (NLTC) (long-term care insurance). Not all Northwestern Mutual representatives are advisors. Only those representatives with "Advisor" in their title or who otherwise disclose their status as an advisor of NMWMC are credentialed as NMWMC representatives to provide investment advisory services.
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[1] Includes investments and separate account assets of Northwestern Mutual as well as retail investment client assets held or managed by Northwestern Mutual.
