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.
20.9 per cent of the country’s population received the equivalised disposable income in cash below the at-risk-of-poverty threshold. In 2022, at-risk-of-poverty rate in urban and rural areas stood at 19.7 and 23.3 per cent respectively. In 2022, the at-risk-of-poverty threshold was EUR 510 per month for a person living alone, EUR 1,071 – for a family composed of two adults and two children aged under 14. Compared to 2021, due to an increase in disposable income of population, the at-risk-of-poverty threshold grew by 5.5 per cent.
Compared to 2021, overall at-risk-of-poverty rate increased by 0.9 percentage points: in five major cities – increased by 1.2 percentage points, in other cities and towns – increased by 4.3 percentage points, in rural areas – decreased by 2.1 percentage points.
At-risk-of-poverty rate by place of residence, 2018–2022
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 2022, it stood at 39.5 per cent and, compared to 2021, increased by 3.6 percentage points. During the income survey period (in 2021), the average old-age pension was EUR 413.4 and accounted for 81.1 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, during the income survey period this difference decreased: an average old-age pension has increased more than at-risk-of-poverty threshold.
In 2022, against 2021, the at-risk-of-poverty rate for children under 18 increased by 0.6 percentage points (stood at 17.8 per cent), for persons aged 18–64 – by 0.2 percentage points (15.8 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 by 8.2 per cent lower than the at-risk-of-poverty threshold.
In 2022, the at-risk-of-poverty rate in single-person households stood at 43 per cent and, against 2021, decreased by 1.5 percentage points. In 2022, the at-risk-of-poverty rate in households consisting of one adult with at least one child stood at 35.6 per cent or by 3.5 percentage points less than in 2021.
7.6 per cent of employed persons, 51 per cent of the unemployed and 43.1 per cent of old-age pensioners were living below the at-risk-of-poverty threshold. Compared to 2021, the at-risk-of-poverty rate for employed persons increased by 0.1, that for the unemployed – 0.6, that for old-age pensioners – 4.3 percentage points.
For further terms, see the Dictionary of Statistical Terms.