HILDA 2025 – Insights into a changing Australia
The 2025 Household, Income and Labour Dynamics in Australia (HILDA) Survey Report has been released today.
Established in 2001, this study collects annual data through interviews with all people over 15 years old in each participating household. As we delve into the latest findings, it's clear that economic pressures and social shifts are changing how Australians approach key life decisions.
Retirement
Compared to 20 years ago, Australians aged 60-69 are working longer. The proportion of retired women aged 60-64 has dropped from 70% in 2003 to just 41% in 2023. Men in the same age group show an even more dramatic change, with retirement rates falling from 49% to 27%. While homeowners generally enter retirement with financial security, the number of retirees in private rentals has doubled over two decades. These renting retirees face increasing housing stress, with average annual rent payments rising by 37% in real terms between 2007 and 2023.
"Australia’s retirement system was built on the assumption that most people would own their homes by the time they retire. Over the past decades, public policy has focused on boosting housing demand while neglecting supply, sending prices soaring and entrenching intergenerational wealth inequality. Superannuation alone will not be enough to support the growing number of younger Australians locked out of homeownership," – Dr Kyle Peyton.
Family dynamics
Fertility intentions have seen a notable shift. For the first time, the average number of children desired by men has fallen below two (1.99 in 2023, down from 2.22 in 2005). Women's preferences have also declined, from 2.35 to 2.09 children on average. This decrease is particularly prominent in younger age groups.
"As it was twenty years ago, two children are still the most desired family size, but we’ve seen an increase in the number of people who said they wanted one child, or none at all. Potential parents are growing more concerned about their financial security and the costs of raising a child, and that pragmatism is outweighing the emotional side of the decision," – Dr Inga Lass.
Health and wellbeing
Social connections appear to be weakening, with Australians reporting fewer friends and less frequent socialising compared to 2001. This trend, exacerbated by the COVID-19 pandemic, has potential implications for overall well-being.
"Not only do we feel like we have fewer friends, but we’re also socialising less frequently than in 2001. The proportion of people meeting friends or relatives several times a week or more often dropped by more than 12 percentage points, from about 32% to 20%" – Dr Inga Lass.
A majority of Australians now also report experiencing bodily pain, with women more affected than men. The average reported pain has increased since 2001, even when adjusted for age.
"This increase can partly be put down to an ageing population, but even when we adjust for age, we do see an increase since 2001 in average pain for both men (by 4.8%) and women (by 5.6%). People from lower income households or without a bachelor’s degree are more likely to report experiencing bodily pain. The less money you make, the more pain you’re likely putting up with," – Dr Ferdi Botha.
Household spending patterns
Households are now spending more on rent, tax and childcare. Prior to 2021, Australians were actually spending less on necessities. However, the recent cost-of-living crisis reversed this trend.
“We were slowly heading in the right direction up until 2021, but the recent cost-of-living crisis undid some of that progress in the proportion of our pay packets going towards necessities. Between 2021 and 2023, the total proportion we were spending on those necessities went up by 4.5%” – Professor Roger Wilkins.
This report also saw the highest average income tax rate since the survey started in 2001.
“There were no policy changes to tax brackets over the survey period, so this increase is likely a result of ‘bracket creep’, meaning that Australians’ incomes are increasingly being taxed at the higher marginal tax rates… This accelerated between 2021 and 2023, when wages increased considerably. Normally, wage growth is good for workers’ living standards, but prices were also rising rapidly, so bracket creep contributed to a decline in workers’ living standards in this period,” – Professor Roger Wilkins.
Bracket creep occurs when inflation pushes income into higher tax brackets, resulting in increased tax rates without a real rise in purchasing power. It can affect middle-income earners more significantly than high-income earners.
The Australian Government funds the HILDA Survey through the Department of Social Services and data is collected by Roy Morgan Research. The Melbourne Institute is responsible for the design, management and reporting for the Survey.
Read our 2025 HILDA Statistical Report and learn more about the new realities Australians are facing –