Finland Times

 

Structure of risk-of-poverty in age groups in 2013. Source: Income Distribution Statistics 2013, Statistics Finland.

The risk of poverty is more common and deeper among young adults than other age groups as indicated by Statistics Finland’s income distribution statistics.

 

People aged 18 to 24 are more often than other age groups at the very low end of income distribution and their income is farther than that of others from the at-risk-of-poverty threshold.

 

The majority of old-age pensioners with low income are quite close to the at-risk-of-poverty threshold and their income is higher than that among persons at-risk-of-poverty in other age groups.

 

Those whose income is below 40 per cent of the median income are most at-risk-of-poverty. Large groups among these are students aged 18 to 24 and those having been unemployed for at least six months during reference year, who are present in all working age groups, the statistics show.

 

Young students make up one-fifth of persons most at-risk-of-poverty and unemployed persons 23 per cent. One-fifth of those at-risk-of-poverty are employed persons, mainly self-employed.

 

Forty-five per cent of those most at-risk-of-poverty are aged 18 to 34.

 

Risk of poverty experienced by young people can be described as deep, because the median income of young people at-risk-of-poverty is lower than that of other age groups and the distance of the median income from the at-risk-of-poverty threshold is big.

 

Nearly all persons aged 65 or over below the at-risk-of-poverty threshold of 60 per cent are pensioners. Three out of four old-age pensioners at-risk-of-poverty were quite close to the at-risk-of-poverty threshold.

 

Those aged 65 or over are the biggest age group close to the at-risk of-poverty threshold, as they constitute one-third of this group.

 

In contrast, there are few pensioners in the groups most at-risk-of-poverty. The income of those at pensionable age at-risk-of-poverty is higher and the poverty gap is smaller than for other age groups as per the data.

 

In 2013, the at-risk-of-poverty threshold for a one-person household was euro 14,260 per year or euro 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 risk-of-poverty threshold, the income is at least euro 11,880 but under euro 14,260 per year (euro 990 to 1,190 per month).

 

Persons whose household's disposable monetary income is below euro 9,510 per year per consumption unit are classified in the group most at-risk-of-poverty.