Home > Statistics > Income distribution statistics > 2014 > Poverty > Risk of poverty has diminished most among pension-age people

Published: 18 March 2016

Risk of poverty has diminished most among pension-age people

Statistics Finland's income distribution statistics indicate that the risk of poverty has decreased most among the population aged 65 or over compared to 2007. The at-risk-poverty rate of persons aged 65 to 74 diminished from 16.6 to 8.1 per cent by 2014. The at-risk-of-poverty rate of persons aged 75 or over also contracted significantly, but remained high, 22.2 per cent in 2014. Differing from other age groups, the risk of poverty grew among young people compared to 2007, when the growth in income differentials and risk of poverty stopped among the whole population.

Change in the risk-of-poverty rate between 2007 and 2014 by age, percentage points

Slightly over one-third of persons aged 65 or over at-risk-of-poverty are retired from worker occupations, one quarter former lower-level salaried employees and nearly one quarter former farmers. However, the risk of poverty is high among former farmers: 46 per cent of those aged 75 or over and 21.4 per cent of those aged 65 to 74. The share of pensioners receiving other pension than employment pension among those aged 65 or over was low, so the share of the group among pensioners at-risk-of-poverty is also small, under four per cent. The at-risk-of-poverty rate is, however, high in this group of those receiving mainly national pension or survivor's pension, 29 per cent.

Of age groups, the at-risk-of-poverty rate was highest for those aged 18 to 24, of whom 29.7 per cent were at risk of poverty in 2014. Two-thirds of those at-risk-of-poverty belonging to this group are students. The at-risk-of-poverty rate of those aged 25 to 34 has grown by nearly four percentage points, or in relative terms most of all age groups compared to 2007. Among persons aged 25 to 34 at-risk-of-poverty, 30 per cent were students and 28.8 per cent unemployed persons.

The risk of poverty is deeper for young people aged 18 to 24 than for others, on average. One-third of those aged 18 to 24 below the most commonly used at-risk-of-poverty threshold (60% of median income) were also the most hard up, on the 40 per cent threshold in 2014 (Table). Persons aged 65 or over at-risk-of-poverty were, in turn, often close to the risk-of-poverty threshold of 60 per cent, or among those whose income was 50 to 59 per cent of the national median income.

Table. Number of persons at-risk-of-poverty in different sections of the at-risk-of-poverty distribution by the person s age in 2014

	Income below 40 % of median	Income 40 % to 49 % of median	Income 50 % to 59 % of median	All persons at-risk-of-poverty	At-risk-of-poverty rate
All persons	126 000	162 000	386 000	674 000	12,5
Aged 0 to 17	16 000	21 000	71 000	108 000	10,0
Aged 18 to 24	46 000	43 000	45 000	134 000	29,7
Aged 25 to 34	21 000	25 000	42 000	88 000	12,8
Aged 35 to 49	10 000	23 000	52 000	85 000	8,4
Aged 50 to 64	25 000	27 000	57 000	109 000	9,8
Aged 65 to 74	..	..	49 000	49 000	8,0
Aged 75 or over	..	24 000	78 000	102 000	22,2

Persons are classified as being at-risk-of-poverty when the household's disposable monetary income per consumption unit ¹⁾ is below 60 per cent of the national median income. In 2014, the at-risk-of-poverty threshold for a one-person household was EUR 14,300 per year or EUR 1,190 per month. Income refers to the monetary income after taxes and consists of earned income, property income, and transfer income.

In the group close to the at-risk-of-poverty threshold, the income is at least EUR 11,910 but under 14,300 per year (EUR 990 to 1,190 per month). Persons whose household's disposable monetary income is below EUR 9,530 per year, that is, under EUR 794 per month per consumption unit are classified in the group most at-risk-of-poverty (income below 40% of median income) . The middlemost group at-risk-of-poverty, whose income is 40 to 49 per cent of the national median income, is placed between these income groups. The income per consumption unit for those belonging to the group is at least EUR 9,530 but under 11,910 per year (EUR 794 to 990 per month).

1) The consumption units are based on the so-called OECD's modified scale. One adult in the household is one consumption unit. Other persons in the household aged at least 14 each are 0.5 consumption units and children aged 0 to 13 each are 0.3 consumption units. A household with one adult member is one consumption unit, while a household consisting of spouses and one child aged under 14 together are 1.8 consumption units.

Source: Income Distribution Statistics 2014, Statistics Finland

Inquiries: Kaisa-Mari Okkonen 029 551 3408

Director in charge: Jari Tarkoma

Tables

Tables in databases

Pick the data you need into tables, view the data as graphs, or download the data for your use.

• Database tables and their variables
• Archived tables

---

Updated 18.03.2016