Purchasing power will increase by an average of 0.1 percent in the coming year, according to estimates by the Ministry of Social Affairs and Employment.

That means that with our income we can buy 0.1 percent more in the store.

Due to the strong economic recovery, our wages are going up, but because prices are also rising at the same time, purchasing power remains about the same at the bottom of the line.

We've been hearing all kinds of hurray reports about the economy lately.

For example, De Nederlandsche Bank (DNB) is counting on economic growth of 3 percent in the coming year.

It is expected that we will also feel this in our portfolio.

And we do.

Collectively negotiated wages will rise by 2.2 percent in 2022, but at the same time life will become 1.8 percent more expensive.

Since we have suddenly started to spend a lot more money since the end of the lockdowns, inflation is rising sharply.

This means that the real wage increase will be 0.4 percent and that the average purchasing power will increase by 0.1 percent.

External factors are uncertain

Nevertheless, we should not take those averages too much into account.

Everyone's situation is different and it also depends a lot on external factors.

For example, if you lose your job and fall back on benefits, you immediately have much less to spend.

Whoever wins the lottery, on the other hand, suddenly has a lot more to spend.

In addition, the experts of the ministry use the collective labor agreement wages in these calculations.

It is also quite possible that someone will receive a better salary regardless of his collective labor agreement, because he has a new position or a new job.

And with unemployment so low, employers must find all kinds of ways to attract staff, which is expected to lead to even higher wage growth.

Compensatory measures for specific groups

Finally, policy also has a major impact on our purchasing power.

For example, the rate in the first tax bracket will be increased, a number of tax credits will be reduced and the child benefit will not be indexed.

That affects a number of specific groups.

The outgoing cabinet also takes compensatory measures, but these only alleviate the decline in purchasing power instead of completely nullifying it.

These measures would cost a total of about 220 million euros.

The group that, according to the averages, is making the most progress are benefit recipients: by 0.2 percent.

Single earners are the only ones to lose 0.1 percent.

If we look more specifically, single parents with a minimum wage gain the most (0.5 percent) and single parents with an average income lose the most (0.8 percent).