One in three (36%) – or more than 15 million parents in the UK– fear their children will never be able to retire, as financial concerns for future generations mount, according to new research1 from St. James’s Place (SJP).

The second chapter of SJP’s Real Life Advice Report 2025 reveals that many parents are bracing themselves to support their children financially for longer, as worries over getting on the property ladder, stagnant wages, and the prospect of inadequate retirement savings weigh on their minds. As a result, just four in ten (40%) parents feel optimistic that their children will find financial security, with almost a third (31%) feeling pessimistic.

Parents prepare to support their children financially well into adulthood – with the knock-on effects to their own retirement years

With children facing a challenging financial future, the ripple effect on parents themselves is growing. 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 two in five (39%) 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, one in three (31%) parents fear they will have to delay their own retirement.

Beyond the direct financial impact, parents envisage wider ramifications on family life. A third (34%) think their children may need to live with them as adults or move back home, and almost four in ten (39%) expect to provide childcare for future grandchildren.

Factors driving parents’ financial concerns

The main driver behind parents’ financial fears is that their children will never own a home, with four in ten (40%) who are not optimistic about their children’s future, now believing this will be out of reach for the next generation. Close behind is the concern that children will not save enough for retirement (38%) or that their salaries won’t keep pace with inflation (37%).

Alongside these financial hurdles, one in five parents (21%) fear advances in artificial intelligence could reduce access to well-paid jobs, while 17% worry their children will not value money enough to make good 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.

“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 lead the way in financial education – and advice helps them pass on better financial habits

The majority of parents see themselves as the biggest influence on how their children learn about money, with six in ten (58%) saying they play the leading role – well ahead of schools (32%) and social media (28%).

Positively, parents are taking this responsibility seriously and playing an increasingly active role in helping their children build healthy relationships with money:

  • 58% of parents regularly talk to their children about finances 
  • 57% have actively tried to educate their children about money
  • 56% try to encourage good financial habits
  • 35% give their children direct responsibility for managing money – from pocket money to small budgeting tasks
  • 29% incentivise good money habits

SJP’s research also shows that parents who receive ongoing financial advice are also more likely to engage their children in financial education. Compared to non-advised parents, they are more likely to educate their children about finances (64% vs 52%), encourage good money habits (60% vs 51%) and talk openly about money (59% vs 56%).

Alexandra Loydon continues: “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.”

St. James’s Place’s Real Life Advice Report will be published in a series of chapters over the coming months, examining how advice helps individuals and families across generations to reach their goals and overcome challenges.

 

 

Notes to Editors


1 - Opinium surveyed 8,000 UK adults between 22nd July and 5th August 2025. Quotas and post-weighting were applied to the sample to make the dataset representative of the UK adult population.

What do we mean by financial advice and financial guidance?
We have looked at the impact of all forms of financial advice and guidance. From professional advice received through a financial advice firm or individual including a wealth manager, an Independent Financial Adviser (IFA), a qualified financial planner, and advice received through a bank and building society. We have also looked more broadly at understanding the impact of the help people receive through organisations such as Citizen’s Advice, Pension Wise and others.