A new report from the Melbourne Institute’s 2025 HILDA Survey reveals that Australians are experiencing declining social connections, higher taxes, and increasing economic pressures, reshaping their lives and delaying key milestones.
The survey highlights a marked drop in socialising, with fewer people meeting friends or relatives several times a week—down from 32% in 2001 to just 20% today. Senior research fellow Dr. Inga Lass said the COVID-19 pandemic exacerbated this decline, leaving many Australians feeling lonelier than ever.
Physical well-being has also deteriorated, with more Australians reporting bodily pain, especially in lower-income households. “The less money you make, the more pain you’re likely putting up with,” co-author Dr. Ferdi Botha noted.
Economic pressures are also mounting. Average income tax rates are the highest since 2001 due to “bracket creep,” which has pushed many middle-income earners into higher tax brackets as wages rise with inflation. Professor Roger Wilkins explained that this, combined with rising living costs, has reduced real purchasing power and increased household spending on necessities by 4.5% between 2021 and 2023.
The survey further shows changing family and retirement patterns. For the first time, the average number of children men want has fallen below two, reflecting concerns about financial security and child-rearing costs. Retirement is increasingly delayed: only 41% of women and 27% of men aged 60-64 are retired today, down sharply from 70% and 49% in 2003. Many retirees now struggle with rising housing costs, with those living in private rentals facing a 37% increase in real annual rent over two decades.
Dr. Kyle Peyton warned that “superannuation alone will not be enough to support the growing number of younger Australians locked out of homeownership,” underlining the wider economic strain affecting the population.
Overall, the HILDA 2025 report paints a stark picture of Australians facing social isolation, financial pressures, and disrupted life plans amid rising costs and economic uncertainty.
