Australians less satisfied with life than during pandemic lockdowns

9 June 2026

Growing financial pressure is causing lower life satisfaction levels amongst Australians today than lockdowns did during the height of the COVID-19 pandemic, according to KPMG analysis of ABS data. 

Overall life satisfaction, based on asking people on a scale of 1-10 has fallen to 7.1 in 2025, down from 7.2 in 2020, when lockdowns and widespread restrictions were in place. This marks a notable decline from the pre-pandemic level of 7.5 in 2019, and a broader easing from the relatively stable levels observed between 2014 and 2019 (7.6–7.5). 

KPMG Urban Economist Terry Rawnsley says that the fall in life satisfaction coincides with deteriorating household financial conditions.  

“Unlike the pandemic lockdowns this isn’t a temporary disruption, it’s sustained pressure on living standards. Real wages have gone backwards, declining 4.1% between 2019 and 2025, while median household wealth has stalled at $700,000.  

“These factors have left many average Australians in a precarious financial position for the better part of five years and is undoubtedly affecting how they feel about their lives.”  

“Improving life satisfaction is not something that can be fixed overnight. It will require a sustained focus on factors closely shaping how Australians experience the economy, including real incomes, housing affordability and financial resilience,” added Rawnsley. 
 

Table 1: Life Satisfaction & Economic Metrics

^{Source: ABS General Social Survey (2025), KPMG analysis of ABS Australian National Accounts: National Income, Expenditure and Product. KPMG analysis of ABS Household Income and Wealth, Australia (2019–20), National Accounts: Distribution of Household Income, Consumption, and Wealth publication, Labour Force Status of Families.Note: Wealth data related to financial years and is in 2024–25 dollars, adjusted using changes in the Consumer Price Index. 2024-25 is an estimate and subject to revision.} 

Financial Stress Indicators on the rise 

More Australians than ever are now reporting severe financial stress. One fifth of households now report being unable to raise $2,000 within a week, up from 19.5% in 2019.  

More than a quarter have experienced at least one cash flow problem or engaged in dissaving actions (such as drawing down savings or increasing debt).  

“There has been a slight improvement in the share of households reporting difficulty paying bills compared to 2019, likely due to state and federal energy bill subsidies,” Rawnsley said.

Table 2: Percent of households reporting financial stress indicators 

^{Source: ABS General Social Survey (2025)}

“Financial stress is even more concerning for single parent households,” Rawnsley added.    

“Almost half of single parent households report cash flow problems and 45% of those reporting four or more cash flow problems.” 
 

Different generations hit harder than others

The decline in life satisfaction is not evenly distributed across age groups, with some age groups experiencing sharper falls in satisfaction. 

Those aged 25–34 recorded the lowest life satisfaction at 6.8, down from 7.5 in 2019, representing the largest fall of any group.  

“The decline in life satisfaction among 25–34-year-olds reflects the reality of Australia’s housing market. This is a group facing high rents or large mortgages at the same time as real incomes have gone backwards.” Rawnsley said. 

Australians aged 45–54 also reported comparatively low life satisfaction (6.9).  

“The ‘sandwich’ generation are starting to feel significant financial pressures caring for both ageing parents and trying to support their children whose ability to generate their own wealth has flatlined.” 

Meanwhile younger Australians aged 15-24 have seen a bounce back in life satisfaction from 6.9 during the pandemic to 7.2 today.  
 

Table 3: Life Satisfaction by Age Group

^{Source: ABS General Social Survey (2025)
Note: 2020 General Social Survey was collected between June & September 2020} 

“There would understandably be a boost in satisfaction for younger Australians who experienced a key stage of life like school, university or entering the workforce, in lockdown.”  

In contrast, Australians aged 65 and over reported no change in life satisfaction between 2019 and 2025 (7.7).  

“This relative stability may reflect lower exposure to labour market pressures, higher rates of home ownership, and the cushioning effects of superannuation and government pensions,” Rawnsley said.