A growing divide between the generations is becoming even bigger, according to the latest edition of a long-running survey that tracks Australians’ wellbeing.
And the evidence of income disparity and wellbeing across the generations should be regarded as “the canary in the coalmine”, said a lead participant in the survey.
Deakin University, in partnership with Australian Unity, has been monitoring the wellbeing of Australian adults (aged 18-plus) for the past 22 years through the Australian Unity Wellbeing Index (AUWI). The partners have conducted 40 cross-sectional national surveys with 75,000 Australians since 2001.
This year, the survey found clear wellbeing and income divides. It also reported a crash in economic confidence, with survey results hitting their lowest level in the report’s history, even worse than during the Global Financial Crisis in 2007.
Cost-of-living pressures
Lead researcher Dr Kate Lycett, from the Deakin University school of psychology, said there was a “clear division” between generations in how people felt about their wellbeing.
Personal wellbeing was around 74 out of 100 for people under 55, compared to between 75 and 79 for older age groups.
By income, the wellbeing index was around 73 for people belonging to households with gross annual income of less than $100,000, compared to between 75 and 79 for higher-income households.
Dr Lycett said: “Rising living costs and interest rates are putting immense pressure on many people, particularly those with mortgages and those trying to get into the housing market. Without a lift in economic satisfaction, our national wellbeing will likely remain stagnant.”
Australian Unity chief executive for wealth and capital markets Esther Kerr said the findings likely reflect a “pressure cooker” effect caused by the rising cost of living, higher interest rates, stubborn inflation and global economic uncertainty.
She said the report should be a “call to action” for governments and businesses to implement a suite of policies to bridge the divide.
“This is the canary in the coal mine,” she said.
Half of Australians stressed
The report said more than half of Australians reported feeling financially stressed or were just making ends meet.
“However, this stress is not felt evenly across generations,” the report stated.
“For example, in the financial year ending in June 2023, living costs increased by 6-7 per cent for people who were retired, but almost 10 per cent for employees, who are more likely to have a mortgage and a family to support.”
This year’s survey questioned more than 2000 Australians aged 18-97 on a series of national and personal areas, including the economy, health and community.
While 2000 participants may not sound like a lot, the survey’s longevity allows it to confidently track the nation’s wellbeing.
Carer wellbeing
The survey also regularly examines special areas of interest, and the 2023 survey examined mental health and carer wellbeing.
“The topic of carer wellbeing was chosen given the important role that carers – unpaid and paid – play in our ageing population,” the report stated.
“With the number of people in Australia aged 65 and over expected to more than double over the next 40 years, demand for care is rising. Understanding the wellbeing implications of these developments on informal and professional carers is paramount.”
The report found carers felt they were not being supported in their role and as the amount of caring increased (more than 20 hours a week) their struggles also increased.
“Informal carers who cared for more than 20 hours a week recorded notably lower personal wellbeing and higher levels of mental distress compared to those in professional caring and non-caring roles. Those with a caring load of 40 hours or more seemed to be doing even worse,” says Dr Lycett.
Do you feel financially stressed? What’s changed for you over the past few years? Why not share your experience in the comments section below?
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