Main Findings from the 2022 OECD Risks that Matter Survey

1. Economic health is at the top of respondents’ minds post-COVID

Russia’s unprovoked, unjustified and illegal war of aggression against Ukraine has created uncertainty in the global economy, causing an increase in commodity prices, contributing to inflationary pressures and impacting real incomes (OECD, 2022[1]). Rapid increases in prices of goods and services – including essentials like home energy and food – have squeezed household budgets across OECD countries over the past year, despite an otherwise strong pick-up in economic activities and employment in the aftermath of the COVID‑19 crisis (OECD, 2021[2]; OECD, 2022[1]; OECD, 2023[3]). Price increases have been especially strong in energy, food and services, which are costs that weigh heavily on the most vulnerable, low-income households (OECD, 2022[1]).

The latest data from RTM indicate that concerns about household finances have become more widespread over time (for details about the survey, see Box 1.3). Price rises are at the top of peoples’ minds: on average 9 in 10 respondents across countries are worried about inflation and costs of living (OECD, 2023[4]).1 Beyond these worries about cost of living and energy supply, there are widespread concerns about healthcare.

The OECD Risks that Matter (RTM) survey, now in its third wave, is the only cross-national survey focused on perceptions of government performance in social protection and preferences for social protection. It takes both a short- and long-term view to understand where OECD governments are doing well – and where they are falling short – in traditional benefits and programmes like child benefits, healthcare, income support and pensions (OECD, 2019[5]; OECD, 2021[6]).

The world has seemingly moved from one crisis to another over the past three years. In light of these shifting concerns, the 2022 wave of RTM included a special module on current events focused on current risks and government responses. The report presents these immediate concerns – particularly on economic insecurity – in the context of a comparative review of more traditional areas of social protection.

Main Findings from the Risks that Matter Survey

Results are in from the third wave of the OECD Risks that Matter (RTM) Survey – the leading cross-national survey on perceptions of social protection systems and social policy preferences. With over 27 000 representative voices from 27 OECD countries, Risks that Matter shows that people in even the world’s wealthiest countries are very concerned about their economic security and health, they are critical of government support, and they are calling for a strengthening of the social safety yet.

Worries about finances and health are high…

• On average across countries, 75% of respondents report being somewhat or very concerned about their household’s finances and economic well-being when looking ahead through 2024. This is an eight percentage point increase in economic stress since the last RTM survey was conducted in 2020, in the midst of the COVID‑19 pandemic. Related to this, nearly seven out of ten respondents say they are worried about paying all expenses and making ends meet.

• These worries reflect economic uncertainty around the ongoing cost-of-living crisis. Even as inflation is decelerating from the high peak of 2022, families will likely have to contend with a drop in real wages creating cost pressures for a foreseeable future. Indeed, nine out of ten respondents indicate they are concerned about inflation and the cost of living. Economic worries are especially pronounced among parents of dependent children, younger people and low-income households.

• Looking ahead to the next few years, respondents also worry about accessing good-quality healthcare. Nearly seven out of ten respondents, on average, identify this as their top concern, and it is the top-ranked worry in 12 of the 27 participating countries. Related to this, 56% of respondents, on average, worry about securing good-quality long-term care for elderly relatives.

• Longer-term worries mirror immediate concerns. Looking ahead to the next decade, 75% of respondents, on average, worry about financial security in old age, while 71% worry about accessing good-quality healthcare in the future. 67% and 65% of respondents, respectively, worry about accessing good-quality long-term care for themselves or for elderly family members in the next decade.

… alongside widespread scepticism about government support

• While a number of respondents feel that they can access good-quality and affordable public services, particularly in the areas of education, health and public safety, most are dissatisfied with other aspects of the social safety net. In the areas of housing, disability/incapacity-related needs, and long-term care for older people, only about one‑third of respondents are satisfied with their access, on average across countries.

• Close to half (46%) of respondents report that they don’t think they could easily receive public benefits if they needed them, and among those respondents, over three‑quarters (77%) say they doubt the benefit application process would be quick or easy. Belief in the adequacy of income support in the event of several scenarios of income loss also never exceeds 55%, on average across countries.

• But if not the government, then who would help? As in previous years, respondents across countries are most likely to say they would rely on friends and family or take on more work in the event of financial trouble. On average, 55% of respondents report that they feel confident that a friend or family member would be able and willing to help out, and 53% report that they feel confident that another adult in their household could work more to bring in more money. Only one‑third 33% say they feel confident that government would support them.

What should governments do next?

• In light of these concerns, some common policy preferences emerge. Overall, 74% of respondents – on average across countries – think that their government should be doing more or much more to ensure their economic and social security and well-being.

• This call for greater government action is linked to both to feelings of economic insecurity and social expenditures: more people call for greater government support in countries where a higher share of respondents are worried about paying for essentials, and more respondents are now worried about paying for essentials in countries where the social safety net is more limited.

• Strong distributional preferences emerge as well. Across countries, around four in ten (43%) feel that they do not receive a fair share of public benefits, given the taxes and contributions they pay, and 60% of respondents say that they want their governments to tax the rich more than they currently do in order to support the poor.

• When asked to think about policy areas in which they would like government to spend more resources – bearing in mind the taxes and social contributions their household would have to pay, and the benefits they would likely receive – 74% of respondents think their government should increase spending on health. 71% call for more spending on pensions, and 69% on long-term care services for older people, on average across countries.

• The desire for increased healthcare funding – not least in the long-term care sector – is part of a longer-term trend, as it appeared as a key priority in both the 2018 and the 2020 waves of the RTM survey.

• Support for greater government spending lessens when people are primed to consider a specific cost – 2% of their own income in taxes or social contributions. Still, however, 43% of respondents say that they would spend some of their income in additional taxes for better provision and access to health services, whereas this figure is 37% for old-age pensions, and 30% for long-term services for older people.

The 2022 survey wave represents the first time RTM asked respondents about climate change. Climate change emerges as a high priority issue across countries, with 59% of respondents, on average cross-nationally, calling for government to prioritise climate change.

1.1. Perceived financial insecurities have spread in recent years

More respondents in 2022 than in previous survey waves think their financial situation has deteriorated recently. When asked to look back and compare their household’s current situation to that of one year prior, on average 42% of respondents report that their household’s economic situation has become worse (Figure 1.1). This proportion has increased by more than 9 percentage points since 2020. This increase is particularly striking since the 2020 wave of RTM was collected in the middle of the COVID‑19 pandemic when economic uncertainty was particularly high.

Much of this increase across countries participating in RTM was driven by rising concerns in Europe – likely related to Russia’s war of aggression against Ukraine and associated energy insecurity. Some European countries saw dramatic increases in the share of respondents who reported a worsening financial situation between 2020 and 2022. In Ireland, Austria, and Denmark, the proportion grew by more than 20 percentage points (Figure 1.1), albeit from relatively low levels in 2020. In Denmark, the proportion who perceive worsened financial situations more than doubled between 2020 and 2022, to nearly 40% (Figure 1.1). This may be related to rising energy costs or the appetite for variable mortgage rates, meaning that interest rate increases affect many mortgagors almost instantly (European Central Bank, 2023[7]; Danmarks Nationalbank, 2022[8]).2

To note, the share of respondents who think that their financial situation has deteriorated does not necessarily translate into observed increases in financial precarity. In fact, the share of people at risk of poverty or social exclusion increased only marginally in Austria, Denmark and Ireland between 2019 and 2021.3 Their rates of people at risk of poverty are low in comparative perspective – even though responses to RTM 2022 suggest people feel economically insecure (EUSILC, 2023[9]). Indeed, various factors beyond the individuals’ financial situation may influence the perceived risk financial insecurity, including inflation, benefit systems, consumption patterns, and media coverage (see Box 1.1).

The largest shares of respondents reporting a worsened financial situation are found in Poland, Türkiye, Portugal, where over half of respondents report a worse financial situation in 2022 than one year ago (Figure 1.1).

In just a handful of countries – all outside of Europe – respondents are less likely to report worsened financial circumstances. For instance, in Israel, Korea, and Mexico, the share of people feeling their financial situation worsened fell by more than 5 percentage points between 2020 and 2022. In Mexico, relatively weak perceptions of household finances could have been influenced by particularities in 2018. The first wave of RTM ran in spring 2018, in a period of relatively low consumer confidence and right before the election of a new president (OECD, 2023[10]; OECD, 2023[11]; Zissis, 2023[12]). Worries about household finances gradually decreased in the subsequent years, during and post-COVID.

Israel is also among the countries with the lowest share of respondents reporting a worsened financial situation in 2022 (31%), along with Finland (30%) and the United States (31%) (Figure 1.1). Part of the high proportions seen in Israel in autumn of 2020 could reflect the second wave of COVID‑19 experienced in the end of summer and through autumn (OECD, 2020[13]).

Figure 1.1. More respondents think their financial situation has worsened in the past year in 2022 than 2020

Note: Data is sorted by the variable marked with an arrow (↘) in the direction of the arrow. Average RTM21 refers to the unweighted average over the 21 countries that participated in all waves: 2018, 2020, and 2022 waves. In 2018, respondents were asked: “Do you think that your economic situation is better than, the same as, or worse than it was 12 months ago?”. Respondents could choose between: “Better”; “Same”; “Worse”; “Don’t know”. In 2020 and 2022, respondents were asked: “Do you think that your household’s financial situation is better than, the same as, or worse than it was 12 months ago?”. Respondents could choose between: “Much worse”; “Worse”; About the same”; “Better”; “Much better”; “Don’t know”. Data present the share of respondents who report “much worse” or “worse” for 2020 and 2022. Korea, Spain, Switzerland, and Türkiye were only included in the 2020 and 2022 waves. Latvia and United Kingdom were only included in the 2022 wave. RTM data include respondents aged 18‑64.

Source: OECD Risks that Matter Survey 2018, 2020 and 2022, http://oe.cd/rtm.

Statlink

1.2. Looking forward, worries about economic security are high

Looking ahead, fewer respondents today feel confident about their situation improving than they did in 2020. On average across countries, 75% of respondents report being somewhat or very concerned about their household’s finances and overall social and economic well-being looking ahead to the next two years (Figure 1.2). When comparing countries with data for both 2020 and 2022, the share of respondents concerned about their household’s social and economic well-being rose by 8 percentage points (Figure 1.2).

Concerns about household finances have increased most in countries where levels of concern were relatively low in 2020. For instance, in Austria, Germany, Belgium, and Norway, the share of worried respondents increased by at least 17 percentage points (Figure 1.2). The increase was greatest in Austria, where the proportion of respondents concerned about their household’s finances rose from 50% in 2020 to 75% in 2022 (Figure 1.2), perhaps related to uncertainty in energy prices.

This change over time likely reflects factors in both 2020 and 2022. In 2020 there were systematic cross-country differences4 in how many people could weather the economic crisis, either by continuing to work at their workplace despite lockdowns, by working from home, or by counting on support from social protection systems. For instance, more people could work from home with limited negative impact to household income in Northern Europe, relative to other areas (Eurostat, 2022[14]).

In contrast, inflation in the prices of essentials will affect everyone, even affecting relatively well-off people in the wealthiest OECD countries. According to the OECD Employment Outlook 2023, wage increases failed to keep up with inflation between 2019 and 2022 in many countries, leading to a cumulative fall in real wages. This fall was particularly large in countries like Estonia and Italy (Figure 1.15 Panel B in OECD (2023[15])). In countries like Denmark and Norway, high homeownership rates combined with large proportions of homeowners with mortgages, making many vulnerable to interest rate increases (Scope Ratings, 2022[16]).

There are also some geographic differences in energy insecurity as a result of the war, which could make financial worries more salient in some places than others. Austria and Germany, in particular, have had relatively high reliance on Russian natural gas (BMK Infotek, 2022[17]). These factors help to explain the rather dramatic increase in perceived financial insecurity relative to the RTM survey conducted during COVID‑19.

Figure 1.2. More respondents are concerned about their economic security today than in 2020

Note: Data is sorted by the variable marked with an arrow (↘) in the direction of the arrow. Average RTM25 refers to the unweighted average over the 25 countries that participated in both 2020 and 2022 waves. Respondents were asked: “In general, thinking about the next year or two, how concerned are you about your household’s finances and overall social and economic well-being?”. They could choose between: “Not at all concerned”; “Not so concerned”; “Somewhat concerned”; “Very concerned”; “Can’t choose”. Data present the share of respondents who report “somewhat concerned” or “very concerned.” Latvia and United Kingdom were only included in the 2022 wave. RTM data include respondents aged 18‑64.

Source: OECD Risks that Matter Survey 2020 and 2022, http://oe.cd/rtm.

Statlink

Looking ahead to the next two years, the top concern in most countries relates to being able to afford to pay their bills (Figure 1.3). In Greece, for example, 86% of respondents say they are worried or very worried about making ends meet looking ahead at the next two years – the top reported concern in the country. Respondents are also concerned about risks related to health in 2022, with accessing good-quality healthcare (a new response choice for 2022) being the most commonly reported concern in 12 countries (Figure 1.3).5

Figure 1.3. Respondents worry most about affording expenses and accessing good-quality healthcare

Note: The Figure presents the response choice, per country, with the highest share of respondents who report “somewhat concerned” or “very concerned” in response to the following question: “Thinking about the next year or two, how concerned are you about each of the following? Becoming ill or disabled/Losing a job or self-employment income [Losing income]/Not being able to find/maintain adequate housing/Not being able to pay all expenses and make ends meet/Not being able to access good-quality childcare or education for your children (or young members of your family)/Not being able to access good-quality long-term care for elderly family members/Not being able to access good-quality long-term care for young or working-age family members with an illness or disability/Being the victim of crime or violence [Crime/violence]/Having to give up my job to care for children, elderly relatives, or relatives with illness or disability)/Accessing good-quality healthcare”. Respondents could choose between: “Not at all concerned”; “Not so concerned”; “Somewhat concerned”; “Very concerned”; “Can’t choose”. RTM data include respondents aged 18‑64.

Source: OECD Risks that Matter Survey 2022, http://oe.cd/rtm.

Statlink

There are significant country differences in reported concerns over the coming two years. Not being able to meet all expenses and make ends meet is a top concern among respondents in most countries in 2022, but levels of concern vary considerably. Worries are highest in Greece, followed closely by Chile (slightly below 86%), Türkiye (82%), and Spain (81%) (Figure 1.4). Worries about making ends meet are significantly lower – albeit still the most commonly reported concern – in countries like Norway and the Netherlands, where 55% and 53% respectively are worried about this. Accessing good quality healthcare is also a prominent concern, with Chile ranking the highest at 87% of respondents reporting this concern, followed by Spain (86%), Greece (85%), and Mexico (83%) (Figure 1.4).

Several countries on the left side of Figure 1.4 show widespread concern across issues. In Greece, Chile, Türkiye, Spain, Portugal, and Mexico, over 60% of respondents are worried about the top risks, including “not being able to pay all expenses and make ends meet”, “accessing good-quality healthcare”, “becoming ill or disabled”, “not being able to access good-quality long-term care for elderly family members”, and “losing a job or self-employment income” (Figure 1.4).

Respondents in some countries report relatively lower levels of concern overall, including in Denmark, Finland, Korea, the Netherlands, Norway, and Switzerland, where the share of respondents reporting concern for each option mostly stays below 50% (Figure 1.4).

Mexico and Korea are two countries with unique top-reported concerns. In Mexico, the highest proportion report being worried about being exposed to violence or crime. This is consistent with previous waves of RTM and with surveys carried out by the national statistics office in Mexico (INEGI, 2022[18]). In Korea, the most commonly reported concern is losing a job or self-employment income, with just over 60% of respondents reporting this worry (Figure 1.4).

Figure 1.4. Concerns related to finances, health and accessing long-term care are most widely reported

Note: Data is sorted by the variable marked with an arrow (↘) in the direction of the arrow. Average refers to the unweighted average of the 27 OECD countries for which data are available. Respondents were asked: “Thinking about the next year or two, how concerned are you about each of the following? Becoming ill or disabled/Losing a job or self-employment income/Not being able to find/maintain adequate housing/Not being able to pay all expenses and make ends meet/Not being able to access good-quality childcare or education for your children (or young members of your family)/Not being able to access good-quality long-term care for elderly family members/Not being able to access good-quality long-term care for young or working-age family members with an illness or disability/Being the victim of crime or violence/Having to give up my job to care for children, elderly relatives, or relatives with illness or disability/Accessing good-quality healthcare”. Respondents could choose between: “Not at all concerned”; “Not so concerned”; “Somewhat concerned”; “Very concerned”; “Can’t choose”. Data present the share of respondents who report “somewhat concerned” or “very concerned.” RTM data include respondents aged 18‑64.

Source: OECD Risks that Matter Survey 2022, http://oe.cd/rtm.

Statlink

Comparing RTM 2020 and 2022 makes it possible to consider changes in perceived risks over the past two years. On average, not being able to pay all expenses and make ends meet is the category of risks where worries have increased the most on average across countries (by just over 6 percentage points) (Figure 1.5). The largest increases are seen in Denmark (20 percentage points), Austria (19 percentage points) and Germany (17 percentage points). Some countries had decreases, with the most notable observed in Korea, at 11 percentage points.

Worries increased in two other areas: the perceived difficulty with finding housing and the fear of being the victim of crime or violence. The proportion reporting being worried increased by 4 percentage points for each of the two categories. Worries about finding or maintaining adequate housing has become considerably more widespread in countries like Austria (13 percentage points), Denmark (9 percentage points), and Norway (9 percentage points) (Box 1.2). More respondents worry about being the victim of crime now compared to two years ago in countries like Israel (13 percentage points), Austria (11 percentage points), and Estonia (10 percentage points) – though in Austria worries about crime and violence were a top priority in 2018 as well (OECD, 2019[19]).

In line with the labour market tightening in the aftermath of COVID‑19, worries about losing a job or self-employment income decreased the most out of all risk categories between 2020 and 2022 (OECD, 2023[4]). On average across countries, the proportion of respondents who worry about this decreased by 4 percentage points.

Figure 1.5. Concerns about affording to pay bills are more widespread in 2022 than in 2020

Note: Data is sorted by the variable marked with an arrow (↘) in the direction of the arrow. Average refers to the unweighted average of the 25 OECD countries for which data are available in both 2020 and 2022. Respondents were asked: “Thinking about the next year or two, how concerned are you about each of the following? Becoming ill or disabled/Losing a job or self-employment income/Not being able to find/maintain adequate housing/Not being able to pay all expenses and make ends meet/Not being able to access good-quality childcare or education for your children (or young members of your family)/Not being able to access good-quality long-term care for elderly family members/Not being able to access good-quality long-term care for young or working-age family members with an illness or disability/Being the victim of crime or violence/(new for 2022: Having to give up my job to care for children, elderly relatives, or relatives with illness or disability)/(new for 2022: Accessing good-quality healthcare”). Respondents could choose between: “Not at all concerned”; “Not so concerned”; “Somewhat concerned”; “Very concerned”; “Can’t choose”. Data present the share of respondents who report “somewhat concerned” or “very concerned.” RTM data include respondents aged 18‑64.

Source: OECD Risks that Matter Survey 2020 and 2022, http://oe.cd/rtm.

Statlink

Other widespread sources of worry illustrated in Figure 1.4 are access to healthcare, falling ill or becoming disabled, and accessing long-term care for elderly family members. While RTM 2020 did not include the question about access to healthcare, it is possible to consider the two other key cross-country worries: falling ill and accessing long-term care.

The cross-country average proportions who worry about falling ill or becoming disabled are still relatively high, at about 60%, yet these results are fairly stable between 2020 and 2022, falling by about 1 percentage point overall. There is some variation across countries. Increases are seen for instance in Austria (6 percentage points), Norway (6 percentage points), and Finland (6 percentage points). The share who were worried about falling ill or becoming disabled fell, in contrast, in Portugal (9 percentage points), Korea (9 percentage points), and France (7 percentage points) (Panel A, Figure 1.6).

It may be surprising that these average shares are stable since the 2020 wave of RTM was fielded in the middle of the COVID‑19 pandemic when many were worried about contracting the virus, whereas the 2022 wave of RTM was fielded when much of the danger from COVID‑19 had passed. In part, concerns about health and healthcare might be related to the unexpected and relentless strain on healthcare and long-term care systems during the COVID‑19 pandemic (OECD, 2023[20]). At the same time, worries about staying healthy and accessing healthcare are part of a longer-term trend – since the first wave of RTM in 2018, worries about sickness and disability have been a top concern (OECD, 2021[2]; OECD, 2019[5]) (see Chapter 2 for a longer discussion).

The share of respondents who are worried about securing long-term care (LTC) for elderly relatives across countries are relatively high – at 56% on average across RTM27 countries in 2022 – but relatively stable across RTM25 over the past few years. Again, overall cross-country averages hide some differences between countries. For instance, the share worried about finding long-term care grew in Finland (6 percentage points), Denmark (6 percentage points) and Austria (6 percentage points). By contrast, respondents in Korea (13 percentage points), Israel (8 percentage points), and the United States (6 percentage points) report decreased levels of worry (Panel B, Figure 1.6).

Worries about accessing good-quality LTC for elderly relatives is a particularly high concern in Latin-American and Southern European countries, illustrating the importance of building up this important part of social protection infrastructure to support ageing societies.

Figure 1.6. Concerns about becoming ill and finding long-term care have remained high

Note: Data is sorted by the variable marked with an arrow (↘) in the direction of the arrow. Average refers to the unweighted average of the 25 OECD countries for which data are available in both 2020 and 2022. Respondents were asked: “Thinking about the next year or two, how concerned are you about each of the following? Becoming ill or disabled/Losing a job or self-employment income/Not being able to find/maintain adequate housing/Not being able to pay all expenses and make ends meet/Not being able to access good-quality childcare or education for your children (or young members of your family)/Not being able to access good-quality long-term care for elderly family members/Not being able to access good-quality long-term care for young or working-age family members with an illness or disability/Being the victim of crime or violence/(new for 2022: Having to give up my job to care for children, elderly relatives, or relatives with illness or disability)/(new for 2022: Accessing good-quality healthcare”). Respondents could choose between: “Not at all concerned”; “Not so concerned”; “Somewhat concerned”; “Very concerned”; “Can’t choose”. Data present the share of respondents who report “somewhat concerned” or “very concerned.” RTM data include respondents aged 18‑64.

Source: OECD Risks that Matter Survey 2020 and 2022, http://oe.cd/rtm.

Statlink

1.3. Exploring the relationship between economic insecurity and steeply rising prices

As the labour market recovery has been fairly solid since COVID‑19, RTM respondents’ worries seem to be rooted in rising costs of living in 2022. It is possible to highlight some key findings on this from the RTM survey thanks to the special current events module (OECD, 2021[2]; OECD, 2022[1]; OECD, 2023[3]).

Rapidly increasing prices in 2022 explain in part the increase in perceived financial instability (see Section 1.1). More specifically, OECD countries experienced a price increase of 7.4% between January 2022 and October 2022 (Figure 1.7), resulting in what many call a “cost-of-living crisis”. Prices of essentials such as energy and food increased at a particularly fast rate, squeezing household budgets especially among lower-income households (OECD, 2022[21]). General uncertainty about the economy was also on the rise in autumn: as the OECD Economic Outlook from November 2022 shows, there was great uncertainty around the energy supply going into winter (OECD, 2022[22]). Indeed, in September 2022, the UN reported that “the world is on a slippery slope” with worsening growth prospects, high inflation, high financial and geopolitical uncertainty, combined with diminishing policy support (UN Department of Economic and Social Affairs, 2022[23]).

Figure 1.7. Prices increased rapidly during 2022 and have stayed high since

Source: OECD (2023), Inflation (CPI) (indicator), https://doi.org/10.1787/eee82e6e-en.

When asked whether or not respondents were concerned by different current events in the new current-events module, inflation was at the top of respondents’ minds. On average, 91% of respondents indicate they are “concerned” or “somewhat concerned” about inflation and cost of living (Figure 1.8).

It should be kept in mind that factors other than actual inflation rates determine the proportion of respondents who report being worried about inflation. A range of factors may play into how respondents perceive both the current and future risks of high inflation and the impact this will have on their ability to pay their bills. In fact, there is no significant cross-national correlation between actual inflation rates and the proportion of respondents who report being worried about their finances (for more on this, see Box 1.1).

Worries about inflation are closely followed by concerns about those who need mental health care not getting it (82%) and consequences of climate change (77%) (Figure 1.8). While countries have varying priorities, these current events stand out as preoccupying more than two‑thirds of respondents in all RTM countries (except for Latvian respondents’ concern over climate change, at 56%) (Figure 1.8). It is noteworthy that despite the widespread economic turmoil and sense of financial instability, climate change rises as the third most concerning current event, topping both concern over national security due to the current geopolitical situation as well as concern about low job quality for many current jobs (for more, see Box 3.1).

Figure 1.8. Overall, nine‑in-ten respondents are concerned about inflation and cost of living

Note: Data is sorted by the variable marked with an arrow (↘) in the direction of the arrow. Average refers to the unweighted average of the 27 OECD countries for which data are available. Respondents were asked: “Given current events, how concerned are you about each of the following in [country]? People who need mental health care not getting it/People unable to work due to caregiving for children, disabled or elderly relatives, or themselves/Children’s educational losses due to school closures during COVID‑19/Employers not being able to fill jobs/Low job quality for many current jobs/Ongoing health effects of the pandemic, e.g. long COVID or excess mortality in some groups/Inflation and cost of living/National security due to the current geopolitical situation (e.g. war in Ukraine)/Consequences of climate change”. Respondents could choose between: “Not at all concerned”, “Not so concerned”, “Somewhat concerned”, “Very concerned”, or “Can’t choose”. Data present the share of respondents who report “somewhat concerned” or “very concerned.” RTM data include respondents aged 18‑64.

Source: OECD Risks that Matter Survey 2022, http://oe.cd/rtm.

Statlink

Respondents are not just worried about inflation in general, but also about its potential impact on their household finances. RTM asks respondents how worried they are about paying for certain costs when thinking about costs of living in 2022. On average across the RTM countries, respondents are most worried about home energy costs (81%), essential food products (75%), and fuel for personal vehicles (70%) (see Table A A.1. in Annex A). Portugal has the highest proportion of respondents worried about paying for the single consumption category of energy costs (93%), followed by Greece (92%). This figure is considerably lower in countries like Korea (65%) (see Table A A.1 in Annex A). Nearly half (47%) of respondents across RTM countries report that they are somewhat or very concerned about their ability to pay for all four of the necessary spending categories of “essential food products”, “housing costs”, “home energy costs”, and “rising costs of paying off/down debt” (OECD, 2023[4]).

Individuals with lower disposable income are often the most vulnerable to price rises (OECD, 2023[24]) (OECD, 2022[21]). At least in part, this will be because lower-income households tend to spend a greater share of income on essentials, typically have lower rates and stocks of savings, and may have limited access to credit to fall back on in difficult times. This makes it harder to absorb the impact of higher prices, especially when they concern essential goods and services such as food, housing, and energy.

The RTM survey results reflect this: parents of dependent children, and respondents in lower-income households, are especially worried about their ability to pay for all four of food, housing, energy and paying down debt (OECD, 2023[4]) (Figure 1.9). This trend is particularly pronounced in countries like Ireland, Israel and Norway, where respondents in lower-income households are significantly more likely to report feeling financial pressure compared to those in top-income households. In these countries, differences between the fifth and the first quintile amount to more than 25 percentage points (Figure 1.9). By contrast, the differences by income are relatively small or even negligible in other countries, including Türkiye, Poland, and Latvia. It is noteworthy that in these cases, respondents across all income groups report being worried about affording to pay for essentials (Figure 1.9).

Figure 1.9. In many countries, respondents in low- and middle‑income households tend to be more worried than respondents in top-income households

Note: Data is sorted by the variable marked with an arrow (↘) in the direction of the arrow. Average refers to the unweighted average of the 27 OECD countries for which data are available. Incomes refer to equivalised disposable household income. Income quintiles refer to the division of respondents into five groups based on their reported income, where Q1 refers to respondents with incomes among the lowest 20% and Q5 refers to respondents with incomes among the highest 20%. Respondents were asked: “In thinking about costs of living in 2022, how worried are you about your household’s ability to pay for: Essential food products/Housing costs, i.e. rent or mortgage payments/Home energy costs, i.e. utility bills such as electricity and gas/Fuel for your personal vehicle (if you drive)/Public transportation costs, e.g. bus, trams, metros and trains (if you take public transit)/Rising costs of paying off/paying down debt/Cost of childcare or schooling (if relevant)”. Respondents could choose between: “Not at all concerned”; “Not so concerned”; “Somewhat concerned”; “Very concerned”; “Can’t choose”. Data present the share of respondents who chose “somewhat concerned” or “very concerned” to all four of the response choices, food, housing, home energy and debt. Data include only respondents who fall into either quintile 1, quintile 3, or quintile 5. RTM data include respondents aged 18‑64.

Source: OECD Risks that Matter Survey 2022, http://oe.cd/rtm.

Statlink

Box 1.1. Worries about inflation only partly reflect actual inflation

When looking at the simple, bivariate relationship between inflation and concern over inflation and cost of living, RTM data do not show a significant relationship. Some countries with relatively low inflation rates report high levels of concern about financial insecurity, while others with high inflation rates had relatively lower levels of worry – though it is important to note that all countries have rates of concern about financial insecurity in 2022.

Many country-specific factors unrelated to actual inflation rates can influence the perceived risk of inflation and other personal financial insecurity. Such factors can include, for example, individuals’ financial situation before inflation took off, the responsiveness of their country’s benefit system and subsidy schemes, differing consumption bundles across groups of individuals, as well as media coverage of inflation in their own country and abroad.

Inflation can have a more significant impact on certain groups, such as low-income households and parents (OECD, 2023[4]), depending on their consumption bundles. These groups are likely to face higher relative costs due to the specific items they consume (ECB, 2022[25]). For instance, households that spend a larger share of their income on items with high inflation, such as energy, food, and housing, will experience a higher rate of inflation than the headline rate (ECB, 2022[25]). By contrast, households that spend more on the items with lower inflation rates, such as durable goods and services, and who spend a greater portion on savings, will likely struggle less to afford paying their bills (ECB, 2022[25]).

Different economic circumstances can lead individuals to have different understanding of potential and actual impacts of inflation, which can contribute to their level of worry. For instance, lower-income individuals may take more care than those on higher incomes to compare prices of goods, which may make price changes more notable to them (ECB, 2022[25]).

Media coverage can play a role in shaping concerns, especially in abstract matters that are more difficult to grasp day-to-day (Akerlof and Shiller, 2009[26]). Indeed, perceptions of economic strength or weakness is strongly rooted in the public narratives conveyed through the media (Vignoli et al., 2020[27]). Rising prices and interest rates have received considerable news reporting in 2022, which may have spurred anxiety more than perceived price rises. In some cases, regular and sensationalist coverage could have amplified concerns about current and potential future scenarios, beyond a level that corresponds to what is actually experienced (Beckert, 2016[28]).

Relatedly, media reporting and the international interlinkages of financial systems could have helped make the experience and worries about inflation a global phenomenon, even though actual inflation rates vary by country. In countries with lower inflation rates, worries about inflation may therefore have been amplified beyond what is actually experienced locally. Indeed, it is conceivable that concerns about inflation have become more uniform across countries than actual inflation rates since perceptions are influenced both by the situation in the own country as well as the situation in leading and neighbouring economies.

1.4. Younger respondents are more likely to report financial insecurities while older respondents are more concerned about health risks

While a majority of respondents across age groups are worried about finances and access to good healthcare, there is notable variation by age. Younger adults aged 18‑29 are more concerned about financial insecurity, while older adults are more worried about access to healthcare. On average across RTM countries, 69% of younger adults report being somewhat or very concerned about their finances, compared to 67% of those aged 30‑49 and 62% of those aged 50‑64. On the other hand, 60% of 18‑29 year‑olds report being somewhat or very concerned about accessing good-quality healthcare, compared to 65% of 30‑49 year‑olds and 68% of 50‑64 year‑olds (Figure 1.10).

This pattern of age differences in financial worries is consistent across most countries. The largest differences are observed in Belgium, Canada, Denmark, and the United States, where the proportion of worried young adults is about 19 percentage points (or more) higher than the proportion of worried 50‑ to 64‑year‑olds. The country with the largest difference between age groups is Canada, where 72% of younger adults reported concerns about their finances compared to 57% of middle‑aged adults and only 47% of older adults (Figure 1.10).

In some countries, such as in Latvia, Mexico, and Portugal, respondents across all age groups tend to report feeling financially insecure. These financial insecurities likely relate to a high level of concern among young people about finding and maintaining housing – on average across countries, there is a 22 percentage points gap between 18‑29 year‑olds and 50‑ to 64‑year‑olds in worries about housing (Box 1.2).

By contrast, when considering worries about healthcare, younger adults tend to be less worried than older adults. Four countries stand out with large differences between younger and older respondents: Estonia, Lithuania, Slovenia, and Türkiye. Age differences are comparably small in countries like Chile, Korea, Mexico, Switzerland, and the United Kingdom.

Figure 1.10. Young people tend to worry about finances, whereas older people worry about health

Note: Data is sorted by the variable marked with an arrow (↘) in the direction of the arrow. Average refers to the unweighted average of the 27 OECD countries for which data are available. Respondents were asked: “Thinking about the next year or two, how concerned are you about each of the following? Not being able to pay all expenses and make ends meet/Accessing good-quality healthcare”. Respondents could choose between: “Not at all concerned”; “Not so concerned”; “Somewhat concerned”; “Very concerned”; “Can’t choose”. The data present the share of respondents who report “somewhat concerned” or “very concerned.” RTM data include respondents aged 18-64.

Source: OECD Risks that Matter Survey 2022, http://oe.cd/rtm.

Statlink

Women tend to report financial insecurities more frequently than men, in part reflecting entrenched gender inequality in labour market and societal outcomes across OECD countries (OECD, 2023[29]; OECD, 2021[30]). For instance, poverty rates are consistently higher among women than among men, and the gender pay gap is still persistent (Eurostat, 2021[31]; OECD, 2023[32]). On average, 70% of women report being somewhat or very concerned about not being able to pay all expenses and make ends meet, while only 61% of men do. This gender difference in perceived financial insecurity is consistent across almost all countries participating in RTM and is typically statistically significant (Figure 1.11). The gap is particularly high in Finland (20 percentage points) and Austria (16 percentage points) (Figure 1.11). While the gender differences in poverty rates are small or negligible, there is an above‑OECD-average gender pay gap in both countries (Eurostat, 2021[31]; OECD, 2023[32]).

Women are also more likely to report worries about accessing good-quality healthcare than men. On average, 69% of women report being somewhat or very concerned about this issue, compared to 61% of men. Differences are relatively pronounced in Finland (18 percentage points) and Denmark (16 percentage points). Overall, gender differences in relation to healthcare are less pronounced than gender differences in financial insecurity, with statistical significance in gaps found only in 18 countries (Figure 1.11).

Figure 1.11. Women are more likely than men to worry about both financial security and health

Note: Data is sorted by the variable marked with an arrow (↘) in the direction of the arrow. Average refers to the unweighted average of the 27 OECD countries for which data are available. Respondents were asked: “Thinking about the next year or two, how concerned are you about each of the following? Not being able to pay all expenses and make ends meet/Accessing good-quality healthcare”. Respondents could choose between: “Not at all concerned”; “Not so concerned”; “Somewhat concerned”; “Very concerned”; “Can’t choose”. Data present the share of respondents who report “somewhat concerned” or “very concerned.” RTM data include respondents aged 18‑64.

Source: OECD Risks that Matter Survey 2022, http://oe.cd/rtm.

Statlink

Box 1.2. Housing security is a key worry for young adults

Housing costs are one of the most significant regular expenses for many households. Housing costs are not easily adjustable in the short term, as finding and moving to a more affordable home, or applying to relevant housing benefits, can imply high costs in time, energy and finances.

As worries about household finances are widespread, it may not be surprising that many respondents worry about housing costs. Indeed, nearly half of respondents across RTM countries worry about being able to access adequate housing between 2020 and 2022 (Figure 1.4).

Worries about accessing housing are also part of a longer-term trend of deteriorations in affordability. House prices have risen rapidly since the 2008 financial crisis, and rents have typically followed suit. With housing costs rising faster than real wages housing has become increasingly less affordable over time (OECD, 2021[33]).

Significant age gaps in concerns about accessing adequate housing are observable in almost all surveyed countries. On average across countries, finding adequate housing is the second most commonly reported worry among 18‑29 year‑olds. However, when looking at overall worries across countries and all age groups, housing worries are not as prominent. The reason is that there is significant variation by age in worries about being able to find housing. Younger adults are considerably more likely to be concerned about accessing adequate housing, on average, with a 22 percentage point difference between 18‑29 year‑olds and 50‑64 year‑olds (Figure 1.12).

There is some variation in the size of the age gap in worries about housing, with largest gap found in Ireland (48 percentage points), followed by the United States and Canada (37 percentage points in both) (Figure 1.12). By contrast, Estonia, Finland, and Slovenia have relatively small age gaps (9 percentage points or smaller) (Figure 1.12).

Figure 1.12. Housing is a key worry for young adults

Note: Data is sorted by the variable marked with an arrow (↘) in the direction of the arrow. Average refers to the unweighted average of the 27 OECD countries for which data are available. Respondents were asked: “Thinking about the next year or two, how concerned are you about each of the following? Not being able to find/maintain adequate housing”. Respondents could choose between: “Not at all concerned”, “Not so concerned”, “Somewhat concerned”, “Very concerned”, or “Can’t choose/not applicable”. Data present the share of respondents who report “somewhat concerned” or “very concerned.” RTM data include respondents aged 18‑64.

Source: OECD Risks that Matter Survey 2022, http://oe.cd/rtm.

Statlink

1.5. Worries about finances and health remain relevant in the longer term

Looking ahead to the next decade, many report being worried about longer-term risks to personal finances and health. The most commonly reported risk, “not being financially secure in old age,” has 75% of respondents worried on average across countries (Figure 1.13). A majority of people across RTM countries report worrying about this, ranging from 90% in Chile to 59% in the Netherlands. “Accessing good-quality healthcare” is the second-most chosen source of concern, with 71% of respondents saying they worry about this on average across countries. At the upper end of the spectrum, 91% worry about this in Chile while just 51% do so in Switzerland (Figure 1.13).

These widespread long-term worries about financial risk and access to health reflects the shorter-term focus on not being able to make ends meet and accessing good-quality healthcare. These are also consistent with observations from the 2020 wave, where worries about health and finances were the most prevalent (OECD, 2021[2]).

Accessing good-quality long-term care – both for the respondent and for elderly family members – also comes out as a top risk. This concern emerged as a consistent issue in 2020, as well.

Figure 1.13. In the long term, respondents care about security in older age

Note: Data is sorted by the variable marked with an arrow (↘) in the direction of the arrow. Average refers to the unweighted average of the 27 OECD countries for which data are available. Respondents were asked: “Looking beyond the next ten years, how concerned are you about the following? Not being as well-off and financially secure as your parents and/or that you had hoped to be/Your children (or young members of your family) not being as well-off and financially secure as you are/Becoming ill or disabled/Not having the right skills and knowledge to work in a secure and well-paid job/Not being financially secure in old age/Not being able to find/maintain adequate housing/Not being able to access good-quality long-term care for yourself/Not being able to access good-quality long-term care for elderly family members/Not being able to access good-quality long-term care for young or working-age family members with an illness or disability/Accessing good-quality healthcare”. Respondents could choose between: “Not at all concerned”; “Not so concerned”; “Somewhat concerned”; “Very concerned”; “Can’t choose”. Data present the share of respondents who report “somewhat concerned” or “very concerned.” RTM data include respondents aged 18‑64.

Source: OECD Risks that Matter Survey 2022, http://oe.cd/rtm.

Statlink

Box 1.3. Data collection methods of the OECD Risks that Matter survey

The OECD Risks that Matter (RTM) survey is a cross-national survey examining people’s perceptions of the social and economic risks they face, how well they think their government addresses those risks, and what preferences they have for social protection going forward. This is the most extensive global survey of perceptions of, and preferences for, social protection.

The RTM survey builds and expands on standard data sources like administrative records and labour force surveys, which provide more traditional data on issues such as people’s labour force participation and earnings, their health status, and their level of education. The RTM microdata cover a majority of OECD countries and are updated every two years. Existing cross-national surveys in the area of perceptions of risk, including certain rounds of the International Social Survey Programme or the European Commission’s Eurobarometer survey, are conducted less frequently and/or only in specific regions.

The first RTM survey was conducted in spring and autumn of 2018, covering 18‑70 year‑olds in 21 countries. The second wave ran in September-October 2020, covering 18-64 year‑olds in 25 OECD countries, and the third wave – presented here – was fielded in October-December 2022, covering 18‑64 year‑olds from 27 countries. The countries participating in the 2022 wave are Austria, Belgium, Canada, Chile, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Israel, Italy, Korea, Latvia, Lithuania, Mexico, the Netherlands, Norway, Poland, Portugal, Slovenia, Spain, Switzerland, Türkiye, the United Kingdom and the United States. Member countries opt in to participate.

The questionnaire was developed by the OECD Secretariat in collaboration with OECD member country Delegates and stakeholders participating in an advisory group workshop in April 2022, and subsequently translated into national languages.

RTM uses non-probability samples recruited via the Internet and over the phone, and respondents take part in the survey online. The sampling criteria is based on quotas for gender, age group, education level, income level, and employment status. Survey weights are used to correct for under- or over-representation based on these five criteria. The target and weighted sample is 1 000 respondents per country. Respondents are paid a nominal sum of around one to two euros. The survey contractor is Bilendi Ltd (formerly Respondi Ltd).

RTM is overseen by the OECD Employment, Labour and Social Affairs Committee (ELSAC) and managed in the OECD Directorate for Employment, Labour and Social Affairs. Financial support for the 2022 survey was provided through voluntary contributions by participating OECD member countries, and specific modules were funded by the OECD Centre for Well-Being, Inclusion, Sustainability and Equal Opportunity (WISE), Kings College London, and the University of Stavanger.

Notes

← 1.  This is consistent with recent survey findings from the Eurobarometer, where respondents have reported that rising prices, inflation, or costs of living are among the two most crucial issues facing the EU (Eurobarometer survey, 2023[53]; Eurobarometer Survey, 2022[54]).

← 2.  The fact that many respondents in Denmark experience a negative impact on their household finances are corroborated by findings from YouGov from September 2022. According to a survey, 41% of respondents in Denmark report already having had to make cuts to their usual spending and expect to have to make further cuts in future. Only 15% in Denmark report having been able to maintain their usual spending and expect to be able to continue doing so (YouGov, 2022[56]).

← 3.  The income reference period in EU-SILC is a fixed 12‑month period, the previous calendar year (based on accrual principle – the delayed tax and income payments are included in the disposable income for reference year) for all countries. This means that the latest data reported by EUSILC in 2022 refers to incomes in the calendar year of 2021 (Eurostat, 2023[55]).

← 4.  This is related to various factors, such as differences in sectoral emphasis of different economies and differences in the level of prior take‑up of technological resources.

← 5.  To note, this response choice on healthcare quality was added in addition to the response choice “becoming ill or disabled,” which was used in all three survey waves.