Analytics, Estonia, Quality of life, Statistics

The increase in the at-risk-of-poverty rate was due to that the income of persons who had previously earned slightly higher income than the risk-of-poverty threshold, increased at a slower rate than the risk-of-poverty threshold and in 2017 remained below the risk-of-poverty threshold.

In 2017, a person was considered to be at risk of poverty if his/her equivalised monthly disposable income was smaller than 523 euros (469 euros in 2016) and in absolute poverty if his/her equivalised monthly disposable income was smaller than 207 euros (200 euros in 2016).

In 2017, 3.4% of the Estonian population, i.e. 44,000 people, were living in absolute poverty, which is 0.2 percentage points more than in 2016.

The at-risk-of-poverty rate anchored at a fixed moment in time, i.e. the share of people with an equivalised yearly disposable income lower than the at-risk-of-poverty threshold three years ago adjusted for inflation, has decreased from 12.8% to 12.2% over the year.

Social transfers (state benefits and pensions) helped to prevent falling into poverty, as had they not been included in income, 38.5% of the population would have been at risk of poverty (39.2% a year before) and 22.8% in absolute poverty (24.6% a year before).

Compared to 2016, the at-risk-of-poverty rate has decreased both among children and among young people, but has increased among older people. In 2017, 47.5% of persons aged 65 and over were living at risk of poverty (41.2% in 2016). Among children under 18, the at-risk-of-poverty rate was 15.9%, i.e. 0.6 percentage points lower than in the previous year. The absolute poverty rate of children fell as well – from 3.5% in 2016 to 3.2% in 2017.