More than a third (36%) of parents in the UK fear their children will never be able to retire, according to new research from St. James’s Place.
The firm’s Real Life Advice Report 2025 found many parents are bracing themselves to support their children financially for longer, amid concerns about stagnant wages, the prospect of inadequate retirement savings and difficulty getting on the property ladder.
Just four in 10 (40%) parents feel optimistic that their children will find financial security, while one in three (31%) feel pessimistic.
More than one in five (22%) parents who are not optimistic about their children’s future are bracing themselves for their children to remain financially dependent on them well into adulthood, with 39% of parents expecting to support their children financially during their own retirement years.
A quarter (25%) expect to dip into their retirement savings to help their children, while 15% anticipate releasing equity from their homes to provide support. As a result, 31% of parents fear they will have to delay their own retirement.
In addition, a third (34%) of parents think their children may need to live with them as adults or move back home and 39% expect to provide childcare for future grandchildren.
The failure to own their own home was the main driver behind parents’ financial fears, with as many as four in 10 (40%) parents believing this will be out of reach for the next generation. This was closely followed by the inability to save enough for retirement (38%) and salaries failing to keep pace with inflation (37%).
Alexandra Loydon, group advice director at St. James’s Place, said: “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.”
Loydon said the majority of parents see themselves as the biggest influence on how their children learn about money, with 58% saying they play the leading role, well ahead of schools (32%) and social media (28%).
Nearly six in 10 (58%) parents regularly talk to their children about finances, while a similar proportion (57%) have actively tried to educate their children about money and 56% try to encourage good financial habits.
St. James’s Place research also showed that parents who receive ongoing financial advice are more likely to engage their children in financial education.
Loydon 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.”
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