THE 2025 statistical report for the Household, Income and Labour Dynamics in Australia (HILDA) Survey has been released, providing a snapshot of how Australians are living. The HILDA Survey interviews the same 16,000 people every year, providing a unique opportunity to assess how economic and social factors are affecting the everyday lives of Australians. Capturing data up until 2023, this 20th iteration of the report is the first to consider data collected in the peak of the cost-of-living crisis that followed the COVID-19 pandemic.
The survey has shown that changing economic factors are having a major influence on the life decisions made by Australians, with respondents waiting to retire at an older age, and wanting fewer children compared to the first HILDA Survey in 2001.
“We have the benefit of more than 20 years of data, which, when you consider everything that’s happened globally, is a long time,” said Dr Inga Lass, lead author of this year’s report. “This year, we’ve started to see the effects of Australians, feeling the cost-of-living pressures around them and then having to make decisions about their life.”
Workers aged between 60 and 69 are retiring much later in life than they were 20 years ago. In 2003, 70% of women and 49% of men aged between 60 and 64 were retired. By 2023, those rates have dropped considerably to 41% of women and 27% of men.
“These changes likely reflect a mix of economic and policy factors,” said report co-author Dr Kyle Peyton. “Back in 2003, the age pension eligibility was 62.5 years of age for women and 65 for men. By 2023, that had been increased to 67. That shift alone means many older Australians have needed to stay in the workforce longer, especially those who can’t afford to retire before becoming eligible for the pension. At the same time, improvements in health at older ages mean that more people are physically able to keep working later in life.”
Renting retirees being left economically vulnerable
Housing wealth remains the most significant component of economic wellbeing for retired Australians. The proportion of retirees living in private rentals has roughly doubled over the last twenty years, while the wealth gap widens between retirees who own a home and those who do not.
Fertility rates at risk of further declines as desired number of children drops
Australia is at risk of a further decline in fertility rates, with respondents reporting they want fewer children and smaller families compared to 20 years ago. For the first time, the average number of children desired by men has fallen below two, from 2.22 in 2005 to 1.99 in 2023. Women on average desire slightly more children than men, but the decline was just as marked – from 2.35 down to 2.09. This decrease is particularly prominent in younger age groups.
“As it was twenty years ago, two children is still the most desired family size, but we’ve seen an increase in the numbers of people who said they wanted one child, or none at all,” said Dr Inga Lass. The survey also asked potential parents about the issues they consider important when deciding to have a child.
“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.”
