Decent old‐age incomes for all? A microdata analysis of poverty among older adults in the Netherlands

The fact that a considerable number of people in rich societies do not have the means to obtain the minimum necessities raises legitimate questions for policy. Older adults are especially vulnerable because of deteriorating health, rising costs of medical care and loss of labour income. We use administrative panel data over the period 2012–2021 and a budget-based poverty line to estimate the extent of poverty among Dutch citizens aged 50 years and older. Our results show that old-age poverty is low compared to poverty among younger age groups, especially among the over-65s. Moreover, it is more prevalent, more frequently occurring and more persistent among first-generation immigrants than among natives. Second-generation immigrants are also more vulnerable, but their disadvantage is much smaller and limited to people who have not yet reached retirement age. These results point to the importance of the Dutch state pension scheme in preventing poverty among older adults.