The poverty rate is defined with respect to the Eurostat poverty threshold in 2005. Assume, for example, average housing equity for a 65-year-old in 2004 and 2006 of around EUR 146 000. With a life expectancy of 18.8 years (as calculated by Eurostat) at the age of 65 and an annual interest rate of 6%, the present value of the home would be around EUR 49 250.