Melinda Howes
AMP’s latest Retirement Confidence Pulse Deep Dive report – Can we afford kids? – finds 53 per cent of respondents aged 20–29 had scaled back their intended family size because of cost pressures. Almost half (48 per cent) had reconsidered having children, while 44 per cent had delayed parenthood.
The concerns extend well beyond the cost of raising young children. Across all age groups, 57 per cent believe having children makes it harder to retire comfortably, rising to 61 per cent among women.
Nearly three in four Australians (74 per cent) believe younger generations are being forced to choose between starting a family and building long-term financial security.
Housing also looms large, with 63 per cent of respondents in their 20s feeling they need a foot on the property ladder before having children.
The key findings
Australians in their 20s:
- 53% say cost-of-living pressures have reduced the number of children they intend to have.
- 48% have reconsidered having children and 44% have delayed parenthood because of cost pressures.
- 63% feel they need a foot on the property ladder before having children.
All adult Australians:
- 57% believe having children makes it harder to retire comfortably, including 61% of women and 54% of men.
- 74% believe younger generations are being forced to choose between starting a family and building long-term financial security.
- 71% worry about the future financial security of their children.
Melinda Howes, AMP Group Executive, Superannuation and Investments, said: “For many young Australians, the question ‘Can we afford kids?’ carries a worry about their financial future. “Retirement might feel a long way off, but as cost of living pressures escalate, decisions about housing, having children and taking time out of work can shape financial security for decades.
“That’s why building retirement confidence needs to start well before people approach retirement.
“These findings don’t mean parents are destined for a less comfortable retirement. They show how difficult younger Australians believe it is to balance the family life they want with feeling financially secure later on.
“People need practical support to understand their options, including what parental leave or reduced working hours could mean for their income and super.
“Accessible advice can help them plan for those changes and feel more in control of their future.”
AMP Deputy Chief Economist Diana Mousina said: “Financial pressures are one part of a broader shift towards later parenthood and smaller families. As Australia ages, the challenge is sustaining living standards and meeting growing demand for care without placing an ever-greater burden on working families.”
Planning for kids
- Plan for the income change: Map out your budget before, during and after parental leave, including childcare costs and any reduced working hours.
- Check your support: Understand your employer’s parental leave arrangements, government payments and childcare subsidies you may qualify for.
- Build some breathing room: Set a manageable savings goal and, where possible, trial your parental leave budget before the baby arrives.
- Keep retirement in the picture: Check how time away from work could affect your super, and explore advice available through your fund.
About the research
The report draws on AMP-commissioned research conducted by third-party research company Dynata among 2,000 Australians in July 2026. Findings describe respondents’ views and reported intentions, rather than measured effects on retirement outcomes.