Australia’s financial safety net is straining under the weight of mental health costs, according to research commissioned by the Council of Australian Life Insurers.

Long-running challenges around financial advice access and affordability are compounding matters.

The council says its State of Australia’s Safety Net report depicts a nation under pressure, with young workers juggling insecure jobs, families stretched by mortgages and pre-retirees worrying whether their savings will last.

Council CEO Christine Cupitt says mental health tops the list of issues that need addressing.

“Over the last decade alone we’ve seen a significant rise in mental health claims for disability insurance, with mental health now a top cause of claim,” she said.

“Most concerningly, we’ve seen a sharp increase in claims due made by Australians in their 30s. Addressing this requires a co-ordinated response, led by governments with national targets, better access to earlier treatment, and [an approach] that addresses shortages in the workforce.”

The council has also pressed for action on the advice gap in life insurance.

More than three in 10 working Australians have considered seeking advice about life cover but fewer than one in 10 have received professional guidance, according to the research.

“This puts people at risk of making misinformed decisions and having inadequate coverage, or no coverage at all,” the report says.

“People value expert guidance when determining the life insurance they need. Financial advisers remain the leading and most trusted source of advice for those who do manage to obtain it.

“The advice gap has led Australians to turn increasingly to informal channels including social media for information.”

One-third of working Australians who have insurance are seeking comprehensive financial advice, while about one-quarter only want basic information; 37% who do not have life insurance are more interested in basic information.

There are fewer than 600 financial advisers who focus on life insurance, and only 185 pure risk advisers operate in Australia.

“This limited supply of advisers underscores the urgent need for reform to make it easier for advisers to support their clients, and to allow product issuers to provide limited advice to their customers,” the report says.

“The Delivering Better Financial Outcomes reforms are a critical step toward closing Australia’s persistent advice gap.”