Sweden Finland Austria

9.
Pensioner without former occupation. ’Single APW’
’Retirement’ at ’usual’ age, here 65 years
The pensioner receives basic pension, i.e. 48,300 SEK, cf. the former case. The basic
pension is not taxed (there is a standard deduction designed in such a way, that
single and married pensioners, only receiving the basic pension do not pay personal
tax).
The ’net compensation percentage’ relative to the APW is 48,300 / 116,852 × 100
= 41.3.
The ’decrease’ in disposable income, relative to that of the APW, is 58.7 per cent by
this kind of ’retirement’.
10.
Pensioners with maximum period of former occupation. APW-couple
The two pensioners have the same age, and both retire 65 years old
It is assumed that the wife and husband have gained pension rights for 30 years each.
The husband is ’identical’ to the single pensioner in case 8. The wife is assumed to
have had half the income of her husband all the time, it will result in 1.515 ’pension
points’ according to the Swedish ’ATP’ scheme. On these assumptions the additional
pension (ATP) will be 77,860 SEK for the husband and 29,270 SEK for the wife, in
total 107,130 SEK in 1991.
The basic pension is equal to the basic amount, i.e. 32,200 × .785 = 25,277 SEK for
each of the pensioners, in total 50,554 SEK. The couple will not receive any sup-
plementary amount. The disposable income for the APW-couple as pensioners is
50,554 SEK in public pensions plus 107,130 SEK in additional pension minus
32,814 SEK in personal tax, in total 124,870 SEK. 
The net compensation percentage is 124,870 / 178,452 × 100 = 70.0.
The decrease in disposable income compared to the APW-couple is 30.0 per cent.
’Standard’ income events in connection with children
1-3. The couple has 1, 2 or 3 children
For child no. 1 (6 years old) there is a family allowance of 9,000 SEK in 1991.
Compared to the situation without children the increase in disposable income is
(9,000 / 178,452) × 100 = 5.0 per cent with one child (6 years old).
For child no. 2 (3 years old) the allowance is also 9,000 SEK. Compared to the
situation without children the increase is (18,000 / 178,452) × 100 = 10.1 per cent
with two children (6 and 3 years old).

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For child no. 3 (1 year old) the allowance is 1.5 × 9,000 = 13,500 SEK. Compared
to the situation without children the increase is (31,500 / 178,452) × 100 = 17.7 per
cent with three children (6, 3 and 1 year old).