Households' income, particular groups, 1990-2000

Like the population in general, pensioners and other receivers of social security benefits have had a favourable development in individual income during the 1990's. Old-age pensioners, disability pensioners and receivers of survivor benefits had a real growth in total income per person of about 20 percent in the period 1993-1999. Total income is the sum of earnings, property income and transfers, before deduction of taxes. There are nevertheless clear differences in income level between male and female receivers of social security benefits. We find the largest difference within the large group of old-age pensioners, where the women only have a total income that only amount to 2/3 of what men have. The differences between men and women's level of income was also large within the group of pensioners in receipt of voluntary early retirement pension. On the other hand, there are only small differences between men and women who are in receipt of survivor benefits, or those who receives re-employment benefits.

There are also clear differences in the level of income for different pension groups when we look at household income. The highest household incomes were found where the main income earner had voluntary early retirement pension, with a mean income after tax of NOK 261 000 in 1999. We find the lowest household income where the main income taker is an old-age pensioner, with an income after tax per household of NOK 173 000. As for the development in individual income, there has been a considerable growth in household income for the receivers of social insurance during the 1990's.

Fewer with low income

Many of the low-income indicators are based on relative distance to the general income level in the country. A commonly used method is for instance to define all persons with a household income after taxes per consumer unit below 50 or 60 percent of annual median income as a low-income group. When using such low-income indicators it shows that there has been a decline in the number of receivers of social insurance with low-income in the 1990's.

Since the mid 1990's and towards 2000 the portion of old-age pensioners with low income has decreased (under 50 percent of median income). Also disability pensioners, single parents and survivors had a clear lower share in the low-income group towards the end of the decade, than at the beginning of the decade. There is however one group that have a different development compered to receivers of social security benefits, namely receivers of social assistance. A consistent improvement of income has not taken place for this group towards the end of the 1990's. It is also among those in receipt of social assistance that the proportion with low-income is the largest. On the other hand there has been a clear reduction in the number of households who receives social benefits during the 1990's, in absolute terms.

A larger portion of receivers of social insurance was found in low-income groups compared with the population in general. At the same time the number of receivers of social insurance declined through the 1990's. Both old-age pensioners, single parents and particularly receivers of social assistance had a higher proportion in the low-income group compared to the total population.

Stability in the proportion in receipt of social assistance

The use of social benefits is another indicator on the development of financial difficulties. Many receivers of social insurance are over-represented among households that receive social benefits. This is particularly true for long-term-sick, disability pensioners and single parents. On the other hand there are very few old-age pensioners who receives social benefits.

Through the 1990's there has been marginal changes in the share of households that receives social assistance. For single parents there was, however, a considerably smaller proportion that received social benefits at the end, compared to the beginning, of the 1990's.

High property among the elder

Most of the pensioner households have increased their property during the 1990's. This is particularly true in respect to old-age pensioners who increased their gross property from an average of NOK 425 000 in 1990 to NOK 600 000 in 1999. Also households where the main income earner is in receipt of The Voluntary Early Retirement Scheme or a surviving partner, has high gross property. These households all had just as high gross property as the old-age pensioners, that is about NOK 600 000 in 1999.

Other groups who receive social security benefits, for instance single parents, had on the other hand a much lower gross property but higher debt.

Statistical basis

Based on available income- and property statistics a series of indicators for income and property for persons and households has been established. The aim is to highlight the changes that have taken place over time on this field. The indicators will be updated annually. In the statistics that are presented here, the focus is placed on number of social groups who receives security benefits. These are groups that will be mentioned in more detail in the publication of a report that Statistics Norway has produced on assignment for the Ministry of Social Affairs, about economy and living conditions for different groups of social insurance receivers. This report will be published by the end of august.

Tables:

• Table 1 Total income per person by different characteristics of the individual. 1999-kroner. Average. 1 000 kr
• Table 2 Total income of women in per cent of total income of men, by different characteristics of the individual
• Table 3 Total income for persons, by different characteristics of the individual. At constant prices. 1993=100
• Table 4 After tax income for households in 1999-kroner. 1 000 kr
• Table 5 After tax income for households. At constant prices. 1990=100
• Table 6 Number of persons in the household. Average
• Table 7 The proportion of persons in households with an equivalent household income below 50 per cent of median household equivalent income. Per cent
• Table 8 Percentage of persons in households with equivalent income less than the median equivalent income for all. Per cent
• Table 9 The proportion of individuals with persistent low income (60 per cent of average median equivalent income). 1996-1998. Per cent
• Table 10 Proportion of households that received social assistance
• Table 11 Total gross property of households in 1999 kroner. Average. 1 000 kroner
• Table 12 Debt of households in 1999 kroner. Average. 1 000 kroner