Quarter of households pessimistic about financial future

Pessimism among households about their financial situation has increased further in 2005. Nearly one quarter of households anticipate a deterioration of their finacial situation next year, whereas in 2004 one in five households anticipated a deterioration. The rate for 2000 was one in ten.

More pessimistic about the future

Since 2003 pessimists outnumber optimists. In 2005  23 percent expect their financial situation to worsen in the next twelve months and 14 percent expect their financial situation to improve. In 2004 their were as many optimists as in 2005, but the proportion of pessimists was 4 percentage points down on this year.

Opinions about the financial situation of the household

Households’ opinions about their financial situation in the last twelve months hardly changed. This year 38 percent think their financial situation over the last twelve months has changed for the worse. This is about the same amount as last year, but 27 percentage points up on 2000. The proportion of households who think their financial situation improved fell to one in ten this year. 

Pessimism rife in lower income brackets

Lower income brackets are more negative about their finances in the future than higher income brackets. In the 20% lowest income brackets one in three expect a worsening of their financial situation, i.e. three times as many as in 2000. This income bracket includes many people over the age of 55 who participate in early retirement schemes and benefit recipients. In other income brackets, the rate of pessimists is also more than twice as high as in 2000.

Share of households who expect their financial situation to deteriorate in the twelve months to come

Households more often in debt or forced to withdraw money from savings accounts

Nearly 3 percent of all households indicated that running into debt was unavoidable in the current situation, whereas nearly 6 percent had to withdraw money from their savings accounts. Both percentages are higher than in 2000.

Opinions on the current financial situation of the household

Over four in every ten Dutch households reported they had money left at the end of the month, as against more than half of all households in 2000. The number of households who only just manage to make both ends meet is also on the increase. In 2005 this applies to nearly half of all households.

Ger Linden