Financial vulnerability in the Netherlands
However, a new study by Deloitte, Financial health of Dutch households, shows that almost half of all Dutch households – 47 percent – are nevertheless financially vulnerable or unhealthy. What can be done about this?
The concept of financial health, as used in the Deloitte study, goes beyond simply being able to make ends meet. It encompasses the extent to which a household is able to comfortably meet both current and future financial obligations, focusing on five areas and the balance between them: income, expenditure, saving, borrowing and planning. This broad definition explains why, even with improved purchasing power, a significant part of the population remains financially vulnerable. The situation among young adults aged 18 to 24 is particularly worrying. While overall financial health improved slightly in 2024, the percentage of financially healthy households in this age group actually fell from 18 to 12 percent. Young adults are increasingly taking on debt to make ends meet – an increase from 4 to 9 percent – and using their savings to cover living expenses. This development is all the more problematic because young adults often face insecure employment contracts, rising rents and limited opportunities to build wealth.
Crucial role for employers
Employers appear to be able to play a crucial role in tackling financial vulnerability. They are in a unique position to pick up early signals of financial problems and provide targeted support. The National Coalition of Financial Health, in which more than 50 employers are currently actively participating, shows that employer initiatives can be effective. This coalition reaches approximately 650,000 employees, which, when taken together with their family members, represents a significant social reach. Concrete interventions by employers can range from offering budget coaches to facilitating anonymous assistance. For young adults, offering more security in employment contracts is particularly important. Flexible but long-term contracts can contribute to financial stability and planning certainty. In addition, employers can provide information about the correct use of social benefits and create opportunities for extra working hours if employees wish to work more. Although financial health involves far more than just preventing debt, breaking the taboo surrounding financial problems remains a major challenge. Many employees find it difficult to approach their employer about their personal financial affairs. Employers must therefore handle this sensitive situation with integrity and make it clear that they offer a safe environment for employees who ask for help.
Collaboration required
Tackling financial vulnerability also requires collaboration within the broader financial ecosystem. This includes not only traditional financial service providers such as banks and insurers, but also energy companies, healthcare institutions, municipalities, pension insurers and retailers. An example of collaboration is the ‘social collection’ of payment arrears, whereby all parties involved deal with the debt collection in a uniform manner, with the priority being the sustainable recovery of the customer’s situation. The paradox of increased purchasing power alongside persistent financial vulnerability illustrates the complexity of financial health. The solution lies in a combined approach in which employers, the financial ecosystem and government policy reinforce each other.
Essay by Peter van Loon, partner at Deloitte. Published in Management Scope 06 2025.