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Number of ’financially vulnerable’ up in Denmark in 2023

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Ritzau/The Local - [email protected]
Number of ’financially vulnerable’ up in Denmark in 2023
A higher proportion in Denmark struggled to make ends meet in 2023. Photo: Ida Guldbæk Arentsen/Ritzau Scanpix

The proportion of people in Denmark who can be considered ‘financially vulnerable’ has risen from 7 percent to 10 percent in one year.

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National agency Statistics Denmark’s annual analysis of living standards in the Nordic country, published Tuesday, shows a notable increase in the proportion of people struggling to make ends meet.

The analysis shows that some 10 percent of the population can be categorised as ‘financially vulnerable’, three percent points more than last year’s 7 percent.

Financial vulnerability is an EU term based on five criteria including whether individuals can afford to pay bills, own a car, go on holiday or pay unforeseen bills for amounts equivalent to around 10,000 kroner.

If three of the five criteria are met, the person is considered financially vulnerable.

The Danish figures reflect the impact on disposable amounts available to people in Denmark from outside circumstances beginning in 2022, according to Anne-Louise Lindkvist, head of marketing and customer services with pensions fund Sampension.

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“We have also seen high, albeit falling, inflation this year, which in combination with challenges presented by rising interest and more, has made it hard for many people to get financial ends to meet,” she told news wire Ritzau.

Wage increases – many secured through collective bargaining agreements in early 2023 – have largely protected people in employment from the effects of high prices, according to the data agency. Similarly, most retired people have managed due to solid pensions savings.

But single parents with children living at home are among those most likely to be impacted, the agency found.

All EU countries produce similar reports on the financial health of their citizens annually. Denmark has one of the lowest proportions of financially vulnerable citizens in the union.

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