Parker appeared 18 times for England during his career, before retiring in the summer to focus on coaching.
Speaking to 'The Daily Mail', the former Tottenham and Newcastle man couldn't praise England's latest batch of young players highly enough.
"They are miles ahead of anything. Miles ahead of us," he enthused.
"Technically they are superb. We can still improve their understanding of the game but in terms of pure ability it's unrecognisable.
"When I was growing up, the keeper just put the ball down and booted it. Same with the defenders.
"Now they all play out from the back like that Spain team we all fell in love with. We have caught up."
Despite their tecnhical ability though, the 37-year-old is concerned that England's youngsters aren't fully aware of the other things they need in order to be successful in the game, saying: "Do all the boys really understand what it takes to be a player at a really big club?
"Talent alone will 100 per-cent get you a career. But where? Here? No way. There are massive sacrifices and I wonder these days - living in an age where everything is instant - if they get that yet or when they do whether they can cope."