Average income down in real terms, survey says
Summary
A recent survey found that the average income for people in Guernsey has fallen by 12% in real terms compared to five years ago, after adjusting for inflation. Although people are earning more money before taxes, the cost of living and other expenses mean their actual purchasing power is lower.Key Facts
- The 2023/24 Household Expenditure Survey had over 2,000 participants from Guernsey.
- Average gross income was £77,619 per year, which is 12% higher than in 2018/19 without adjusting for inflation.
- When inflation is considered, average income is 12% lower in real terms compared to five years ago.
- Average spending was £67,411 per year, 19% higher nominally, but 6% lower in real terms after inflation.
- After taxes, social insurance, and other funding sources, average money available for spending per household is £69,067 annually.
- 41% of respondents have no savings or less than the equivalent of one month’s income saved.
- People renting in affordable or partial ownership housing spend 33% of their income on housing; private renters spend 22%, and homeowners with mortgages spend 19%.
- The data helps ensure inflation measures are accurate and supports policy and market research decisions.
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