Economic health: Rises and Stalls in 2023’s Average Household Income

This article was last updated on March 25, 2024

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A Closer Look at 2023’s Household Income Figures

Despite a turbulent global economy, households in the Netherlands saw their average disposable income rise by 1.4% in 2023 when compared to the previous year. This data comes from Statistics Netherlands, which uses the term ‘real disposable income’ to denote the amount available to all households after adjusting for inflation. Despite this increase, one can observe an unusual pattern – the real disposable income began to decrease from the last quarter of 2022, and only managed to bounce back up in the final trimester of 2023. The upward shift in income in 2023 was chiefly attributed to an increase in collective labor agreement wages. Self-employed persons saw their incomes rise, as did those on benefits, which are typically pegged to the minimal wage. This minimum wage witnessed a substantial hike by 10% at the outset of the year 2023 and experienced a further 3% increase as of July 1. Forecasts for the years 2024 and 2025 by the CPB (Centraal Planbureau) predict a further rise in the real disposable income.

Financial Health of Households: Not All Rosy

However, this nationwide increase in income level doesn’t necessarily translate into a more robust financial health for all households. An annual survey published by the finance consultancy firm Deloitte – which coincided with the release of the CBS figures – highlights this situation. Deloitte’s report indicates that even though the financial health of households saw some improvement in 2023, more than half of all households remain in a financially delicate state. This refers to the inability of these households to amass a buffer to cushion unforeseen financial shocks or, in some instances, to sustain their everyday living expenses. Many respondents in the survey attribute this situation to their reluctance to seek professional help for their financial troubles. Most people prefer to handle their financial troubles independently or rely on assistance from their friends and family, according to Deloitte’s findings. Deloitte suggests further research to comprehend why some people resist seeking help from third-party sources regarding their monetary struggles. The survey also endorsed the idea that general practitioners might have a significant role to play by encouraging conversations around financial issues.