Almost half of Australians admit the rising cost-of-living has impacted their mental health with young people most impacted, according to a new study by Compare the Market.
The nationally representative survey from the consumer comparison experts found 48.7% of Australians studied said they now experience or have exacerbated anxiety or depression due to money pressures – led by Generation Z (72.0%), followed by millennials (56.6%), Gen X (48.3%), and baby boomers (28.7%).
Alarmingly, one-in-five Australians (20.5%) reported the onset of anxiety or depression when they haven’t before.
| 18-26 years (Gen Z) | 27-42 years (Millennials) | 43-58 years (Gen X) | 59+ years (Baby Boomers) | Totals | |
| Yes, I now experience anxiety (I didn’t before) | 16.7% | 12.2% | 17.8% | 11.5% | 14.3% |
| Yes, I now experience depression (I didn’t before) | 9.3% | 5.6% | 6.6% | 4.8% | 6.2% |
| Yes, it has made my anxiety worse | 30.0% | 23.4% | 16.2% | 8.0% | 18.0% |
| Yes, it has made my depression worse | 16.0% | 15.4% | 7.7% | 4.5% | 10.3% |
| No | 25.3% | 41.3% | 51.0% | 70.7% | 51.3% |
Source: Compare the Market
More than one-in-three participants (34.9%) said they were sleeping less due to money stress – with Gen Z most vulnerable (48.0%), trailed by Gen X (38.2%), millennials (35.0%), and baby boomers (25.8%).
Further research uncovered half of Australians (50.2%) admit the rising cost-of-living has impacted their relationships:
- 9% said they could no longer afford to socialise as much
- 9% said it has put a strain on their marriage or romantic relationship
- 9% said it has put a strain on the relationship with their parents
- 4% said it has put a strain on the relationship with their children
Compare the Market’s Economic Director, David Koch, said inflation has had a crippling consequence on Australians and their mental health.
“Cost-of-living impacts all Australians, but it’s clear that the younger generations are feeling it the most – particularly those on lower wages, with student debt, raising a young family, and people who don’t benefit from intergenerational wealth,” Mr Koch said.
“For many, it feels like an uphill battle to pay rent, bills and groceries, afford to socialise, and try to have savings for a home deposit when almost everything is climbing up.
“But don’t let money stress control you. Please reach out to your family, friends or a counsellor if you need help. There are financial hardship assistance programs available from many insurers, energy providers and home loan lenders, too.”
Mr Koch called on the renewed federal government to further support Australians battling continued high cost-of-living pressures.
“Immediate bill relief is essential, but the country cannot survive on band-aid solutions,” Mr Koch said.
“It’s critical that the government delivers its election promises and longstanding economic reform to set Australians up for a brighter future.”
Compare the Market commissioned PureProfile to survey a nationally representative sample of 1,0009 Australians in April 2025.
When referencing this research, please attribute: https://www.comparethemarket.com.au/news/money-stress-impact-2025/
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Henry Man | [email protected] | +61 474 368 908
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