Why Teens Value Happiness Over Pay: New Research Reveals a Shift in Career Priorities

As they prepare to enter the world of work, teenagers are prioritising happiness and work-life balance over earning potential and job security, according to new research from M&G, a leading savings and investment firm.

The intergenerational study on reframing money conversations, which surveyed both parents of 16-18 year olds and the teenagers themselves, found almost half of young people (48%) say enjoying their future job is the most important factor when choosing a career, while a third plan to prioritise work-life balance (33%). Both rank ahead of earning potential (23%) and starting salary (17%). Long-term benefits carry little weight, with only 16% valuing job security and just 5% saying a good pension is important.

While teenagers are focused on finding work that fits their lives, parents are looking much further ahead. Many worry that careers built around flexibility and enjoyment may not provide the financial stability needed to achieve traditional life milestones or build long-term financial security.

More than a third of parents worry about their child’s ability to get a job (38%), leave home and gain independence (37%) or financially support themselves (37%). Three in 10 (30%) worry about their child’s ability to choose a career path that allows them to succeed, while almost a quarter (24%) are concerned about the impact AI could have on future job prospects.

The research suggests parents are increasingly viewing career decisions through a long-term financial lens. Almost a quarter (24%) question their child’s ability to make long-term financial decisions, while one in five (20%) already worry about whether their child will be able to retire securely.

Despite these concerns, many parents appear reluctant to discuss them openly. While almost half (49%) say they talk to their children about the impact of social media on wellbeing, and around four in ten discuss mental health (39%) and career success (40%), they are much less likely to talk about concerns such as financial independence, leaving home or the impact of AI on future employment.

The study also revealed a gap in expectations around adulthood and employment. Parents expect their children to start their first full-time job by the age of 23, while many teenagers believe this will happen between the ages of 24 and 26. The difference suggests some families may underestimate how long parents will continue providing financial support.

“Many young people are thinking about what they want from their working lives and often don’t define success solely by income or climbing a traditional career ladder. They’re looking for work that offers flexibility, purpose and a better balance between work and life. Parents can see the benefits of that shift, but they’re also asking practical questions about financial security, independence and what retirement might look like in a world where career paths are becoming less predictable and linear.

With young people likely to change jobs, careers and ways of working more often than previous generations, keeping track of pensions and long-term financial goals becomes even more important. Regular Pension Health Checks when starting a new job could help people understand whether they’re still on track for later in life and give them confidence that the choices they are making today will still support the future they want tomorrow.” Matthew Ings, Chartered Financial Planner at M&G, said:

M&G is calling on the Government to introduce regular Pension Health Checks alongside pension dashboards, helping people understand their savings, remain engaged and make informed decisions throughout their working lives. M&G has also created a short animation showing how a Pension Health Check could work in practice.

What matters most to 16-18 year olds when choosing a career

| Factor | Percentage of 16-18 year olds who ranked this as most important | | --- | --- | | A job I enjoy | 48% | | Work/life balance | 33% | | Earning potential | 23% | | Entry salary | 17% | | Job security | 16% | | Working with people I like | 15% | | Opportunity for career progression | 13% | | Flexible working arrangements | 10% | | Opportunity for travel | 9% | | A company that matches my values | 9% | | Opportunity for learning / studying alongside | 8% | | Being my own boss / starting my own business | 7% | | A good pension scheme | 5% | | Competitive benefits package | 4% |

Source: M&G 2026

What parents worry about in relation to their child’s future

| Worry | Percentage of parents of 16-18 year olds who worry about this | | --- | --- | | Their ability to get a job | 38% | | Their ability to leave home and gain independence | 37% | | Their ability to financially support themselves | 37% | | Their ability to choose a career path that allows them to succeed | 30% | | Their mental health and ability to cope with the stress and pressure of making serious decisions | 29% | | The impact of student debt on their finances | 26% | | The impact of AI on their job prospects | 24% | | The cost of supporting them in the future | 24% | | The impact of social media on their wellbeing and self esteem | 24% | | Their ability to make long term financial decisions | 24% | | Their ability to understand finances and money enough to set themselves up for the future | 22% | | Their ability to retire | 20% | | None of the above | 12% |

Source: M&G, 2026