Sweden Finland Austria

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 437 FIM/month and a supplementary amount of 1,936 FIM/month
(for a single pensioner in the ’low’ cost part of the country in 1994), in total 28,476
FIM a year. There is no taxation of any kind of this minimum pension.
The ’net compensation percentage’ is 28,476 / 76,578 × 100 = 37.2.
The ’decrease’ in disposable income, relative to that of the APW, is 62.8 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 both had a ’full’ working record. In this case the income related
pension is 60 per cent of the gross wage income at retirement, i.e. 0.6 × 121,916 =
73,150 FIM for the husband plus 0.6 × 60,958 = 36,575 FIM for the wife as well as
the basic amount in the basic pension scheme, i.e. 5,244 FIM for each of the spouses.
For the former part time working spouse, there will be an additional 2,894 FIM left
from the means testing of the pension supplement, which in 1994 is 1,646 FIM per
month for each spouse. The total pension is 73,150 + 5,244 + 36,575 + 5,244 +
2,894 = 123,107 FIM.
The gross compensation percentage is 123,107 / 182,874 × 100 = 67. The disposable
income of the pensioner couple is 89,179 FIM.
The net compensation percentage is 89,179 / 121,379 × 100 = 73.5.
The decrease in disposable income is 26.5 per cent compared to the APW-couple.

---

223
4) In the husband’s income bracket the daily allowance is calculated in this way: 269.13 + 0.4 (0.965 ×
121,916 - 114,290) / 300 = 269.13 + 4.48 = 273.61 FIM. For 18 days the compensation is 18 × 273.61
= 4,925 FIM.
5) In the wife’s income bracket the daily allowance is calculated in this way: 101.13 + 0.66 (0.965 ×
60,958 - 37,930) / 300 = 101.13 + 45.97 = 147.10 FIM. For 263 days the compensation is 263 × 147.10
= 38,687 FIM.