One in three parents fear their children will never be able to retire

More than one in three parents fear their children will never be able to retire, new research shows.

Financial concerns for future generations are growing due to stagnant wages, surging property prices and inadequate retirement savings, a survey from financial advice firm St James’s Place shows.

These dire financial conditions mean some 36 per cent of parents – more than 15 million – believe their children won’t retire.

Dipping into retirement savings, releasing equity from their home and even delaying their own retirement are some of the ways families are expecting to help their children.

Parents are preparing for their adult children to move back to the family home amid expectations of dire financial futures

But the concerns for their children go far beyond retirement expectations – many are worried for their financial future throughout their lives.

Just two in five parents feel optimistic that their children will find financial security while almost one in three feel pessimistic.

And 22 per cent of the parents not optimistic about their children’s future are bracing themselves for their children to remain financially dependent on them into their adulthood.

Plus, for some 39 per cent parents they think they will have to financially help their children during their own retirement, when cash can be tight as pensions savings have been calculated for lower outgoings.

It’s not money, either – some 34 per cent of parents surveyed think their children may need to move back home as adults.

Growing numbers of young adults are not feeling the nest but instead doing the reverse and moving back into their family homes as adults.

The Bank of Mum and Dad are fearful for their children because they think they will never get on the property ladder, the St James’s Place report shows. 

It’s a concern for 40 per cent of parents.

Soaring house prices and stagnant wages mean it is increasingly difficult for first-time buyers to build a deposit and meet affordability criteria set by lenders.

And as rental prices soar due to increased demand and little housing stock, savers cannot put much aside each month to build a house deposit or grow their pension pots.

The SJP survey was of 8,000 adults.  

Alexandra Loydon, of St. James’s Place, says: ‘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.’

Talking to children about finances, encouraging good financial habits and giving young children responsibility for managing money are some ways to build a healthy financial attitude.

Ms Loydon adds: ‘Financial education is essential – both at home and in schools. A blend of parental guidance, greater access to professional advice and regular education can make the path ahead for our children far less daunting.’