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 445 FIM / month and a supplementary amount which is 1,973
FIM / month in 1995. The supplementary amount is means tested (taper of 50 per
cent) against the income related pension. In the case where the APW has been work-
ing ’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 12 × 445 = 5,340 FIM plus 0.6
× 132,533 = 79,520, in total 84,860 FIM (the supplementary amount is means tested
to zero).
The gross compensation percentage is 84,860 / 132,533 × 100 = 64. The disposable
income of the pensioner is 57,157 FIM.
The 
net compensation percentage is 57,157 / 82,114 × 100 = 69.6.
The decrease in disposable income by retirement is 30.4 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 445 FIM/month and a supplementary amount of 1,973 FIM/month
(for a single pensioner in the ’low’ cost part of the country in 1995), in total 29,016
FIM a year. There is no taxation of any kind of this minimum pension.
The ’net compensation percentage’ is 29,016 / 82,114 × 100 = 35.3.
The ’decrease’ in disposable income, relative to that of the APW, is 64.7 by this
kind of ’retirement’.
10.