Income and living conditions of the population of Lithuania (edition 2021)
Photo from Unsplash.com
The EU relative poverty indicators are compiled according to a common methodology: the relative poverty threshold is calculated as the relative share of the average income of the country’s population; persons with income below this threshold are considered living in poverty. However, when comparing the relative poverty among the countries, insufficient consideration is given to differences in terms of standard of living: e.g., in the countries with a high standard of living, persons living below the relative poverty threshold, while having far less opportunities to meet their needs than the rest of the society, still can satisfy more than just their essential needs, so they do not feel as living in poverty. The relative poverty indicators calculated according to the EU common methodology is agreed to be called the at-risk-of-poverty indicators. At-risk-of-poverty threshold in the EU countries is calculated as 60 per cent of the median equivalised disposable income in cash.
20.9 per cent of the country’s population received the equivalised disposable income in cash below the at-risk-of-poverty threshold. In 2020, at-risk-of-poverty rate in urban and rural areas stood at 18.3 and 26.3 per cent respectively. In 2020, the at-risk-of-poverty threshold was EUR 430 per month for a person living alone, EUR 904 – for a family composed of two adults and two children aged under 14. Compared to 2019, due to an increase in disposable income of population, the at-risk-of-poverty threshold grew by 13.4 per cent.
Compared to 2019, overall at-risk-of-poverty rate increased by 0.3 percentage points: in five major cities – increased by 0.9 percentage points, in other cities and towns – increased by 2 percentage points, in rural areas – decreased by 1.3 percentage points.
At-risk-of-poverty rate by place of residence, 2016–2020
The latest and detailed data are available in the Database of Indicators
In 2020, in the households with children, the at-risk-of-poverty rate stood at 17.1 per cent, and compared to 2019, it decreased by 1.3 percentage points. In the households without children, the at-risk-of-poverty rate over a year increased by 1.9 percentage points and stood at 24.4 per cent in 2020. In terms of household composition, persons living in households composed of one adult with dependent children and in one-person households were those at the largest risk of poverty (the at-risk-of-poverty rate – 45.2 and 46.8 per cent respectively).
In 2020, the at-risk-of-poverty rate for persons aged 65 and older stood at 36 per cent and, compared to 2019, grew by 4.4 percentage points. During the income survey period (in 2019), the average old-age pension was EUR 344.4 and accounted for 80.1 per cent of the at-risk-of-poverty threshold. For several years now, an average old-age pension is lower than the at-risk-of-poverty threshold, and during the income survey period this difference increased: an average old-age pension has increased less than at-risk-of-poverty threshold.
In 2020, against 2019, the at-risk-of-poverty rate for children under 18 decreased by 2.7 percentage points (stood at 20 per cent), for persons aged 18–64 – by 0.2 percentage points (16.3 per cent). The decrease was determined by an increase in cash social transfers paid to families raising children. In the income survey period (2019), an increase in social protection expenditure for family and children increased by 27.8 per cent.
Work for a minimum wage and salary did not prevent from the at-risk-of-poverty: after the deduction of income tax and social insurance contributions from minimum wage and salary, disposable income having no other sources of income would be less than the at-risk-of-poverty threshold.
8 per cent of employed persons, 56.4 per cent of the unemployed and 39.5 per cent of old-age pensioners were living below the at-risk-of-poverty threshold. Compared to 2019, the at-risk-of-poverty rate for employed persons increased by 0.1, that for the unemployed – 2, that for old-age pensioners – 4.4 percentage points.
For further terms, see the Dictionary of Statistical Terms.