According to a new report from our research partnership, one in four Australians feels lonely. This data extends a large study we conducted last year on social connections. Together, these findings indicate that once someone experiences loneliness, they are likely to remain lonely. Feeling lonely can negatively affect one’s health, including increased risks of social anxiety, depression, heart issues, sleep problems, and inflammation. It also raises the possibility of an earlier death. Prolonged loneliness can worsen these negative effects. As more Australians face a cost-of-living crisis, financial hardship becomes a key factor contributing to loneliness.
Loneliness is a negative emotional experience that arises when your social needs are not satisfied by the relationships you have. Thus, you can feel lonely even if you are surrounded by others, if you aren’t receiving the proper companionship and support. This might lead to feeling, to some degree, like: not all of these may apply to you, and you may experience them to varying extents. We found that certain communities are more susceptible to chronic loneliness. However, the most significant factor we discovered, even after considering all other possible contributing factors, was the impact of financial hardship. People experiencing financial difficulties were almost seven times more likely to report chronic loneliness and nearly five times more likely to report persistent social isolation compared to those without such financial issues. This finding is consistent with other studies linking economic challenges to poor health outcomes.
For instance, children from low-income families often experience negative impacts on their physical and mental health due to their family’s financial struggles. A large study using the UK Biobank indicated that individuals from less affluent backgrounds had a higher likelihood of reporting loneliness. In Australia, those earning less than $80,000 annually were 49% more likely to feel lonely in one year and 66% more likely to report loneliness for two or more consecutive years compared to those earning over $150,000. Factors like income and living conditions are some of the social determinants of health, which affect health outcomes.
However, little research has explored how financial limitations specifically hinder our social interactions. Two possible scenarios exist: first, financial pressure can alter the way we feel and relate to others due to increased stress; second, financial constraints might limit social activities due to the need to work more or cut costs. While socializing can sometimes be free, it often involves expenses like travel or activity costs. The widespread occurrence of loneliness globally, coupled with increasing scientific evidence of its detrimental effects on health, well-being, and productivity—and consequently the economy—cannot be ignored. The World Health Organization is redefining loneliness as a priority for global public health and has established a Commission on Social Connection.
This commission is tasked with setting a global agenda for social connection, working with high-level commissioners to advocate for global action, scaling proven solutions, and measuring progress. We need to foster a culture of connection in Australia by reevaluating how we make decisions about interacting with each other, fostering social connections in schools, workplaces, and communities, and adapting policies to facilitate starting and maintaining healthy social connections.
Health and social policies addressing loneliness and social isolation must consider how low incomes and increased financial pressures act as barriers to forming and sustaining meaningful social connections. Related to this is urban planning, which requires creating safe and free or low-cost spaces for interaction and relationship-building, such as parks, libraries, public squares, community gardens, and neighborhood centers. Reduction in the development or upkeep of these spaces will hinder community engagement and socialization. Failing to address loneliness promptly and effectively leads to chronic loneliness and potentially greater distress.
Remember, you are not alone in this experience. Inform your family or friends about your financial pressures—they might be facing similar issues due to rising living costs. Opt for low- or no-cost activities like a walk in the park with a friend or connecting via phone. Search for free local events. Consider eating at home rather than dining out, or choose low-cost food options. Find digital platforms that allow for interaction on topics of shared interest. If someone confides that they are feeling lonely, asking “Is there anything I can do to help?” opens the conversation and shows support without judgment.