The growing number of young Kiwis with diabetes could drain our health system.

A shocking new report's found Type Two diabetes could cost us $3.5 billion a year by 2040, up from the current cost of $2.1 billion.

It's also highlighted a trend in diabetes emerging at younger ages.

Otago University researcher Rachael Taylor told Kate Hawkesby unless we act now, the long term impacts will be enormous.

She says someone starting at age 25 costs about $600,000 over their lifetime, whereas if they don't develop it until age 65, it only costs about $50,000.

Taylor told Kate Hawkesby body size is a big contributing factor.

She says obesity rates have increased over the last generation, and now we're seeing diabetes emerge at much younger ages.

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