Median disposable income continued to decline in 2012

Disposable income continued to decline in 2012, according to figures released today by the Central Statistics Office.

The survey on income and living conditions in Ireland showed the median annual equivalised disposable income was €17,702 in 2012. This represents a decline of 2.5 per cent on the nominal 2011 value, or 4.6 per cent in real terms.

The survey is the official souce of data on household and individual income and also provides a number of key national poverty indicators.

According to the CSO, the “‘at risk of poverty” rate in 2012 was 16.5 per cent, the deprivation rate stood at 26.9 per cent and the consistent poverty rate was 7.7 per cent. The corresponding rates for 2011 were respectively 16 per cent, 24.5 per cent and 6.9 per cent. The CSO said the changes in the “at risk of poverty” and consistent poverty rates “are not statistically significant”.

The “at risk of poverty” threshold in 2012 stood at €10,621, or 60 per cent of the median. Real median equivalised disposable income has decreased every year since 2008 when it peaked at €20,681. The 2012 value is the lowest since the first reference year of the SILC in 2004.

According to the survey, disposable income dropped for all groups with the exception of individuals living in households where at least three people were at work.

The groups that showed the largest drop in income were individuals with a highest level of educational attainment of “third level non degree” (down 12.9 per cent ) and individuals living in households where there were two adults under 65 years of age and no children under 18 (down 10.5 per cent).

Individuals with a highest level of educational attainment of “third level degree or higher” continued to have the highest median income of the categories analysed in 2012, at €29,596. The real median income for this group in 2011 was €31,242.

[ The survey can be viewed here ]