Rising Costs Force Young Australians to Defer Essential Healthcare

A stark generational divide has emerged in Australia as soaring cost-of-living pressures force younger citizens to compromise on basic medical care and financial security. According to a comprehensive nationwide study, nearly half of all Millennials have postponed vital healthcare appointments over the past year simply because they can no longer afford them.

The sobering findings form the backbone of the inaugural Resilient Futures Report and Risk Index, commissioned by the Insurance Australia Group (IAG). Surveying 2,400 participants across the country to establish a national benchmark tracking public confidence and exposure to risk, the data underscores how macroeconomic headwinds are disproportionately reshaping the daily lives of younger generations.

The Financial Balancing Act of Gen Z and Millennials

While younger Australians—specifically Generation Z and Millennials—paradoxically report higher levels of long-term hopefulness than their older counterparts, they also carry significantly greater financial exposure. Stripped of the substantial financial buffers built by older demographics, young people are turning to drastic measures to stay afloat.

To cope with escalating expenses, 47.7 per cent of Millennials admit to delaying medical consultations, therapy sessions, and dental check-ups. Furthermore, 45.5 per cent of this same demographic report an increasing reliance on debt, using credit cards, personal loans, or buy-now-pay-later services to cover everyday necessities.

Generation Z, those entering the workforce or in the early stages of their careers, are taking a different route by sacrificing their personal time. A striking 60.5 per cent of Gen Z respondents revealed they have taken on extra paid hours or secondary “side hustles” to supplement their primary incomes.

In stark contrast, older Australians appear far better insulated from the current economic volatility. Baby Boomers expressed the lowest levels of general optimism at just 46.1 per cent, trailing well behind the national optimism average of 56.7 per cent. However, despite their grayer outlook, Boomers are vastly more likely to possess robust personal savings and have taken pre-emptive protective measures to shield themselves from sudden systemic disruptions.

Widespread Disruption Across Households and Businesses

The IAG research highlights that the strain is by no means isolated to individuals. A significant 67 per cent of all consumers and 64 per cent of small-to-medium enterprises (SMEs) experienced major operational or domestic disruptions over the past twelve months.

Yet, resilience remains surprisingly high. Despite navigating a climate of stubborn inflation and high interest rates, 58 per cent of consumers and 72 per cent of SMEs maintain a remarkably positive outlook on the future of the nation.

Climate Realities and Preparedness Gaps

Beyond the immediate financial crunch, the report identifies extreme weather as a severe, emerging threat to commercial stability. Nearly half—48 per cent—of all small businesses surveyed reported direct impacts from climate-related incidents over the last year. Floods, bushfires, and unpredictable storm cycles are no longer distant threats but pressing line-items affecting modern business continuity.

Alarmingly, the index uncovers dangerous gaps in basic preparedness. Many businesses are operating without critical safeguards, including formal continuity plans, backup supply chain networks, or regular reviews of their insurance policies.

Commenting on the index, IAG Managing Director and Chief Executive Officer Nick Hawkins noted that a combination of domestic macroeconomic pressures and global conflicts is eroding household savings and constraining retail spending. Hawkins warned that whilst public awareness of these shifting risks is remarkably high, actual personal preparedness and systemic confidence are failing to keep pace, leaving young Australians uniquely vulnerable.