More than half of young Aussies plan fewer children as costs bite
- 53% of Australians aged 20-29 say cost pressures have prompted them to reduce the number of children they intend to have.
- Almost half (48%) are reconsidering having children, while 44% have delayed parenthood.
- Nearly two-thirds say they need to get onto the property ladder before having kids.
- Three in four believe younger generations have to choose between family and financial security.
AMP's latest Retirement Confidence Pulse found 53% of Australians aged 20-29 had scaled back their intended family size because of cost-of-living pressures.
The report found almost half or 48% had reconsidered having children altogether and 44% had delayed parenthood.
The findings suggest affordability pressures are extending beyond day-to-day budgets and are now influencing decisions about when, or if at all, Australians start families.
"For many young Australians, the question 'can we afford kids?' carries a worry about their financial future," AMP superannuation and investments group executive Melinda Howes said.
Have children or a comfortable retirement?
Nearly three in four (74%) believe the younger generation is being forced to choose between starting a family and building long-term financial security.
More than half (57%) agree having children makes it harder to retire comfortably, a view shared by 61% of women and 54% of men.
Ms Howes said the findings reflected concerns about balancing family aspirations with long-term financial security.
"Retirement might feel a long way off, but as cost-of-living pressures escalate, decisions about housing, having children and taking time out of work can shape financial security for decades," she said.
Home first, kids later
Housing affordability emerged as a major factor in family planning decisions, with nearly two-thirds (63%) of respondents in their 20s saying they need to get a foot on the property ladder before having kids.
According to AMP, the result highlights how closely housing aspirations and family plans have linked.
"For those wanting to buy before having children, a longer path into home ownership may also mean delaying other life decisions," the report said.
The report found saving a 20% home deposit now takes around 11 years.
AMP findings align with recent affordability data showing younger Australians remain cautious about entering the housing market despite falling home prices.
A separate report from Equifax revealed mortgage demand among Australians aged 18-25 fell 25%, while applications from 26-35 year olds dipped 22.5%.
Uncertainty around interest rates and affordability are the major barriers for buyers.
Westpac found three in four (75%) are holding off buying a property until prices fall further, with two in five believing now is a bad time to buy.
Today's financial pressures reshape Australia's future
AMP deputy chief economist Diana Mousina said financial pressures were one factor behind Australians having children later and having smaller families.
The ABS recorded 1.48 births per woman in 2024, with the Treasury projecting it will decline further to 1.34 births per woman by 2065-66.
"Declining fertility is not unique to Australia," Ms Mousina said. "Across much of the advanced world, people are having children later and families are becoming smaller."
The AMP economist believes housing security, the cost and availability of care, and the ability to combine paid work with parenting shape family decisions as much as other factors like education and career do.
"That's why building retirement confidence needs to start well before people approach retirement," Ms Howes emphasised.
"These findings don't mean parents are destined for a less comfortable retirement, they show how difficult younger Australians believe it is to balance the family life they want with feeling financially secure later on," she added.
Advertisement
Looking to take control of your retirement? This table below features SMSF loans with some of the most competitive interest rates on the market.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
7.14% p.a. | 7.16% p.a. | $3,374 | Principal & Interest | Variable | $0 | $230 | 60% |
| Promoted | Disclosure | ||||||||||
7.39% p.a. | 7.41% p.a. | $3,458 | Principal & Interest | Variable | $0 | $220 | 70% | Disclosure | ||||||||||||
7.49% p.a. | 7.51% p.a. | $3,493 | Principal & Interest | Variable | $0 | $230 | 80% | Disclosure |
