The poverty rate has decreased on average since 1977. “That’s because the labor participation rate has increased. Working is the best remedy to do something about poverty. Those who work and are still below the poverty line, work very little and often in precarious contracts,” says Van Mulligen.
Another group that sometimes falls below the poverty line are the self-employed who have had a bad year. “They can live on their reserves, but due to the declining income they are included in poverty in such a bad year. People who still run the risk of poverty after that are mainly people on welfare,” says Van Mulligen. Of the people on benefits, no less than three quarters are below the poverty line.
In the past, many retirees were also below the poverty line, but that has changed. “Previously you were below the poverty line with the AOW”, says Van Mulligen. In the 1990s, AOW pensioners made up a quarter of the people living below the poverty line. The state pension has been increased since 2000.
“As a result, there were almost no pensioners left below the poverty line. Those who were below the poverty line have not fully built up their AOW rights, for example because they have lived abroad. If you do not have supplementary pensions, there is a good chance that you will be under poverty line,” says Van Mulligen.
The purchasing power of retirees has increased for decades, but has actually declined over the past ten years.
Purchasing power up by almost 60 percent in 40 years
Source link Purchasing power up by almost 60 percent in 40 years