Purchasing power markedly higher in 2006 and 2007

02/09/2008 15:00

After a minor dip in 2005, purchasing power rose markedly in 2006 and 2007 to achieve the best results since 2001.

Years of affluence

In 2006 and 2007, the Dutch economy regained momentum. The upward trend is reflected in the purchasing power index. In 2006, purchasing power rose by an average of 2.4 percent and in 2007 by 3.1 percent.

Changes in purchasing power

Changes in purchasing power

Most significant increase in purchasing power in 2001

In 2001, the purchasing power index reached its highest value since the early 1990s. The increase by 5.0 percent in 2001 was mainly due to a revision of the Dutch tax system. In the ensuing years, the index only exceeded 1 percent in 2002. In 2005, purchasing power growth was in fact negative.

People in their fifties have highest incomes

Last year, the average household income stood at 22.1 thousand euro. Incomes will change considerably over the course of a lifetime. This applies in particular to young people. They start at a low level and then their incomes rise substantially as they find (well-) paid jobs or earn more on the basis of age and working experience.

Households with a main breadwinner in the 50–55 age category average the highest purchasing power, i.e. 26.3 thousand euro. The main breadwinner – usually a male full-timer – enjoys a position at the top of the salary scale. After the age of 55, many people switch to part-time employment or stop working altogether resulting in lower incomes.

Average household income by age of the main breadwinner, 2007

Average household income by age of the main breadwinner, 2007

Reinder Lok