Sweden Finland Austria

8.
Pensioner with maximum period of former occupation. Single APW
Retirement at 
usual’ age, here 65 years
The old age pension scheme in Finland consists of a basic part and an income related
part. The basic pension consists of a basic amount, which for a single in the 
low'
cost part of the country is 446 FIM / month and a supplementary amount, which is
1,978 FIM / month in 1996. The whole basic pension (1996) is means tested (taper
of 50 per cent) against the income related pension. In the case where the APW has
been working ’all the time’ the income related pension will be 60 per cent of the
gross income at retirement. On these assumptions an APW with a full working
record from the age of 23 years to 65 years will have a pension equal to 0.6 ×
137,046 = 82,228 FIM (the basic pension is means tested to zero).
The gross compensation percentage is 82,228 / 137,046 × 100 = 60. The disposable
income of the pensioner is 57,244 FIM.
The 
net compensation percentage is 57,244 / 85,551 × 100 = 66.9.
The decrease in disposable income by retirement is 33.1 per cent.
9.
Pensioner without former occupation. ’Single APW’
’Retirement’ at ’usual’ age, here 65 years
The basic pension in the Finnish old age pension system consists, cf. case 8, of a
basic amount of 446 FIM/month and a supplementary amount of 1,978 FIM/month
(for a single pensioner in the ’low’ cost part of the country in 1994), in total 29,088
FIM a year. There is no taxation of any kind of this minimum pension.
The ’net compensation percentage’ is 29,088 / 85,551 × 100 = 34.0.
The ’decrease’ in disposable income, relative to that of the APW, is 66.0 by this
kind of ’retirement’.
10.
Pensioners with maximum period of former occupation. APW-couple