More than 15 million UK parents believe their children may never be able to retire, according to new research from St. James’s Place (SJP), which reveals growing pessimism about the financial prospects of younger generations.
The findings, part of SJP’s Real Life Advice Report 2025, paint a stark picture of intergenerational strain, with stagnant wages, soaring housing costs and inadequate retirement savings leaving many parents resigned to continued financial support for their adult children.
Only four in 10 parents said they felt optimistic about their children’s financial future, while nearly a third described themselves as pessimistic.
EXPECTING TO FUND ADULT CHILDREN – EVEN IN RETIREMENT
One in five parents (22%) who are not confident about their children’s financial outlook expect them to remain dependent well into adulthood. Two in five (39%) anticipate still offering financial support during their own retirement, and nearly a third (31%) believe they will have to delay retiring to do so.
A quarter of parents expect to dip into their pension savings to help their children, while 15% say they may release equity from their homes. The emotional and practical consequences are also far-reaching: one in three (34%) expect adult children to live at home or move back in, and almost four in 10 (39%) believe they will be called upon to provide childcare for future grandchildren.
HOME OWNERSHIP FEARS DOMINATE
The research found that the biggest single concern for parents is that their children will never own a home, with 40% of those lacking confidence about the next generation’s prospects saying property ownership will be out of reach. Almost as many (38%) fear their children will fail to save enough for retirement, and 37% worry that salaries will not keep pace with inflation.
Technological change is another emerging anxiety, with one in five parents (21%) believing that artificial intelligence could reduce access to well-paid jobs, while 17% are concerned that their children will not value money sufficiently to make sound financial decisions.
Alexandra Loydon, group advice director at St. James’s Place, said: “Ask any parent what they want for their children, and the answer is simple: health, happiness and financial security.
“But when it comes to money, that picture is becoming harder to achieve, and the financial world facing today’s children is undeniably more complex than it was for their parents and grandparents. Rising costs, the demise of more generous pension schemes, living longer in retirement, housing that feels out of reach, and social media fuelling spending beyond people’s means, all combine to paint a challenging picture.
“It’s no wonder many expect their children to remain financially dependent well into adulthood, even if that means reshaping their own retirement plans.”
She added: “It’s clear that future generations need greater support, and parents can play an invaluable role in influencing financial behaviours and helping their children learn about money to set them up for later life.
“Additionally, parents who work with a financial adviser can often feel better equipped to talk to their children about money to pass on positive habits.”
PARENTS TAKE THE LEAD ON FINANCIAL EDUCATION
The majority of parents (58%) say they are the biggest influence on how their children learn about money, well ahead of schools (32%) and social media (28%). More than half (57%) have actively tried to educate their children about money, and 56% say they encourage good financial habits. A third (35%) give children direct responsibility for managing small sums, while 29% offer incentives to encourage saving.
Parents who receive professional financial advice are significantly more likely to talk to their children about money and help instil positive habits than those who do not.
Loydon said: “Financial education is essential – both at home and in schools. As the debate about financial literacy as part of the national curriculum continues, St. James’s Place will continue to champion the need for action.
“A blend of parental guidance, greater access to professional advice, and regular education can make the path ahead for our children far less daunting.”
SJP’s Real Life Advice Report is being released in stages throughout the year and explores how professional financial advice can help families navigate the growing economic pressures facing different generations.
