<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>A new report has painted a grim picture of life in Australia, revealing a nation where people are feeling lonelier than ever, pay more tax and are delaying their dreams.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Melbourne Institute's annual Household, Income and Labour Dynamics in Australia (HILDA) Survey, which has tracked the lives of thousands of Australians since 2001, </span><a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0010/5387806/2025-HILDA-Statistical-Report.pdf" rel="" target="" title="released its 2025 report"><span>released its 2025 report</span></a><span> today.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It highlights how everything from rising living costs to the erosion of social networks is taking a toll on the nation's well-being.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>We have fewer friends</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The survey found that our social connections are weakening, a trend exacerbated by the COVID-19 pandemic.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australians are reporting fewer friends and less frequent socialising than at the turn of the century.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Not only do we feel like we have fewer friends, but we're also socialising less frequently than in 2001," senior research fellow and report co-author Dr Inga Lass said.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/aussies-have-fewer-friends-and-higher-tax-bills-major-survey-reveals/9da041ee-614f-4610-b239-d10673fec89a" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The proportion of people meeting friends or relatives several times a week or more has dropped by over 12 percentage points, from about 32 per cent to just 20 per cent.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>This decline in social connection has potential implications for our overall well-being.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The survey also found that a majority of Australians now report experiencing bodily pain, a trend that has worsened since 2001, even when accounting for the nation's ageing population.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>People in lower-income households were also more likely to report experiencing pain, co-author Dr Ferdi Botha said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The less money you make, the more pain you're likely putting up with," Botha said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>The hidden tax of inflation</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The survey revealed that Australians are paying the highest average income tax rate since the study began in 2001.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>This is not due to a change in policy but rather to "bracket creep". </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>As wages have risen to keep pace with inflation, many workers have been pushed into higher tax brackets, effectively reducing their real purchasing power.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Professor Roger Wilkins explained that while wage growth is normally a good thing, a combination of bracket creep and rapidly rising prices has contributed to a decline in workers' living standards in recent years.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>This phenomenon affects middle-income earners more significantly than high-income earners.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Wilkins also highlighted a reversal in household spending patterns. </span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Prior to 2021, Australians were spending less on necessities.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>However, the recent cost-of-living crisis undid that progress, with the total proportion of income spent on necessities jumping by 4.5 per cent between 2021 and 2023.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><h3><strong><span>Economic pressures reshape family and work</span></strong></h3></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The report also sheds light on how economic pressures are influencing our biggest life decisions.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>For the first time, the average number of children men want has fallen below two.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While having two children remained the most common wish, there's a notable increase in the number of people, both men and women, who now want only one child, or none at all.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Lass attributed this to potential parents growing "more concerned about their financial security and the costs of raising a child."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Finally, the notion of retiring in your early 60s is fast becoming a thing of the past.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The proportion of women aged 60-64 who are retired has plunged from 70 percent in 2003 to just 41 percent in 2023.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>For men in the same age bracket, the retirement rate has fallen from 49 per cent to a low of 27 per cent.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>While some are choosing to work longer, the survey points to a more unsettling trend for many.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The number of retirees living in private rentals has doubled in two decades, facing significant financial strain as average annual rent payments have surged by 37 per cent in real terms.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Report co-author Dr Kyle Peyton warned that "superannuation alone will not be enough to support the growing number of younger Australians locked out of homeownership."</span></div></div>