Fewer Dutch in dire financial straits; One in eight still can't pay their bills

Netherlands residents are doing better financially. This year, one in eight Dutch people have trouble paying their bills, up from last year’s one in five. That is still almost 2 million people in dire financial straits, AD reports based on representative research by Panel Inzicht carried out last month.

This year, fewer people rely on benefits or financial assistance - 22 percent, compared to 28 percent last year. More are able to put money in a savings account every month, 74 percent compared to 70 percent in 2023. Last year, 59 percent were able to cover an unexpected expense, like a broken washing machine. This year, 66 percent can manage it without financial worries.

At the same time, a group of Netherlands residents are still in financial trouble. Thirteen percent have acute problems paying their bills, and almost a quarter expect to have trouble in the future. Receiving a bill causes stress for almost a quarter of respondents, and 45 percent worry about their future.

“Purchasing power is good, as is also evident from the latest calculations by the Bureau for Economic Policy Analysis, but the underlying vulnerability has not gone away,” Arjan Vliegenhart, the director of the Dutch budget institute Nibud, tol AD. “Life is more expensive, and the affordability of housing remains difficult.”

He is particularly worried about young adults. Life has become very expensive for them and they cannot find affordable housing. “If you have to buy a house for the first time in your life, the prices are so high that it cannot be solved with an extra percentage of salary,” Vliegenhart said.

In Panel Inzicht's study, almost 20 percent of young adults aged 18 to 34 said that they want to buy a house, and the higher mortgage interest rates are affecting them. Many young adults lack full control over their financial situation. For example, they often don’t know whether they can afford to put savings aside or what insurance policies they have.