Income and living conditions of the population of Lithuania
At risk of poverty rate
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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 per cent of the country’s population received the equivalised disposable income in cash below the at-risk-of-poverty threshold. In 2021, at-risk-of-poverty rate in urban and rural areas stood at 17.4 and 25.4 per cent respectively. In 2021, the at-risk-of-poverty threshold was EUR 483 per month for a person living alone, EUR 1,015 – for a family composed of two adults and two children aged under 14. Compared to 2020, due to an increase in disposable income of population, the at-risk-of-poverty threshold grew by 12.3 per cent.
Compared to 2020, overall at-risk-of-poverty rate decreased by 0.9 percentage points: in five major cities – decreased by 0.2 percentage points, in other cities and towns – decreased by 2.3 percentage points, in rural areas – by 0.9 percentage points.
At-risk-of-poverty rate by place of residence, 2017–2021
The latest and detailed data are available in the Database of Indicators
The biggest at-risk-of-poverty rate was among persons aged 65 and older. In 2021, it stood at 35.9 per cent and, compared to 2020, remained almost unchanged. During the income survey period (in 2020), the average old-age pension was EUR 376.5 and accounted for 78 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 2021, against 2020, the at-risk-of-poverty rate for children under 18 decreased by 2.8 percentage points (stood at 17.2 per cent), for persons aged 18–64 – by 0.7 percentage points (15.6 per cent). The decrease was determined by an increase in cash social transfers paid to families raising children. In the income survey period (2020), social protection benefits in cash for family and children increased by 26 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 by 7.4 per cent lower than the at-risk-of-poverty threshold.
In 2021, the at-risk-of-poverty rate in single-person households stood at 44.5 per cent and, against 2020, decreased by 2.3 percentage points. In 2021, the at-risk-of-poverty rate in households consisting of a single parent with children of whom at least one is under 25 stood at 32.4 per cent or by 7.3 percentage points less than in 2020.
7.5 per cent of employed persons, 50.4 per cent of the unemployed and 38.8 per cent of old-age pensioners were living below the at-risk-of-poverty threshold. Compared to 2020, the at-risk-of-poverty rate for employed persons decreased by 0.5, that for the unemployed – 6, that for old-age pensioners – 0.7 percentage points.
For further terms, see the Dictionary of Statistical Terms.