One in four people in the Netherlands say their income has gone down sharply over the past three years, according to research by the family spending institute Nibud.

Just over a third of those whose income has gone down blame it on unemployment. Illness and becoming unable to work hit almost one in five while 16% took a new job at a lower salary.

One-third said their income had gone down by more than 30%. The research is based on almost 2,000 respondents.

The survey also shows that people are not prepared to deal with financial setbacks and half of those whose income goes down sharply find it hard to make ends meet.

People who are not prepared for a drop in income are twice as likely to end up in serious financial trouble, Nibud said.

The institute says everyone should find out what it would mean to them financially if they became unable to work or lost a significant part of their income.

‘It can happen to anyone,’ the organisation said. ‘If consumers actually think about what it means, they are better able to cope.’