What does financially vulnerable mean?

"Financially vulnerable" is a term used to indicate that a person, household, or company has few financial reserves or buffers to absorb unexpected setbacks. There is no exact limit for what this means, and various studies use different criteria.

According to a study by the Central Bureau of Statistics (CBS) from 2017, people who are not economically independent are considered financially vulnerable. This means that their net income from work and own business is below 70% of the statutory net minimum wage, which corresponds to the net social assistance for a single person. In 2015, this amounted to €11,080 per year, or €920 per month.

Financial vulnerability can mean that someone has no buffer for unexpected expenses, making it difficult for them to make ends meet or be unable to build up savings. It can occur in various groups, including households, flexible workers, or families without a stable second income.