This is due, for example, to a lower level of education and a weaker position on the labor market, according to the regulator. As a result, there is a higher chance of debt problems and payment arrears.
The AFM states that approximately a quarter of the Dutch population has a migration background and that this share is expected to increase to 36% in 2050. The regulator therefore speaks of an important demographic change and wants to contribute to awareness and social dialogue with the survey. around this issue.
AOW-gap
Another important point for specifically first-generation Dutch people with a migration background is the often inadequate old-age provision as a result of an AOW shortfall, according to the AFM. A large part of the first generation of migrants came to the Netherlands at a later age and therefore do not receive a full state pension. Moreover, they seem to make limited use of the Supplementary Income Provision for the Elderly (AIO), which supplements their income up to the social minimum. The AFM states that approximately 40% of pensioners in the Netherlands with a non-Western migration background live below the poverty line.
In addition, Dutch people with a non-Western migration background seem to use a bank account and invest less often. The language barrier is often a major barrier to accessing financial services. The Dutch financial system is also often experienced as complex, because simple information about financial products is missing or difficult to find, says the AFM.
More attention
The regulator therefore believes that more attention should be paid to the financial vulnerability of Dutch people in particular with a non-Western migration background. For example, more emphasis can be placed on financial self-reliance during the integration process. The AFM also states that policymakers and supervisors should take more account of any negative effects of legislation and regulations for this group and says that financial institutions should think about reducing the language barrier.