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12.
Pensioner without former occupation. ’Single APW’
’Retirement’ at ’usual’ age, here 65 years
The ’basic’ pension in the Finnish old age pension system now consists of one
amount, 2,438 FIM/month (for a single pensioner in the ’low’ cost part of the coun-
try), in total 29,256 FIM a year. There is no taxation of any kind of this minimum
pension. The disposable income is 29,256 FIM.
The ’net compensation percentage’ (relative to the APW) is 29,256 / 90,449 × 100
= 32.3.
The ’decrease’ in disposable income, relative to that of the APW, is 67.7 by this
kind of ’retirement’.
13.
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 × 141,157 =

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2) In the husband’s income bracket the daily allowance is calculated in this way: 308.65 + 0.4
(0.955×141,157 - 132,280) / 300 = 308.65 + 3.37 = 312.02 FIM. For 18 days the compensation is
18×312.02 = 5,616 FIM.
84,694 FIM plus 0.6×70,579 = 42,347 FIM, in total 127,041 FIM. For the former
part time working spouse, there will be an additional 5,976 FIM left from the means
testing of the basic pension (25,680 - 0.5×(42,347 - 2,940) = 5,976). The total pen-
sion is 127,041 + 5,976 = 133,017 FIM. 25,680 FIM is the annual basic pension for
a spouse in the ’low’ cost part of the country.
The disposable income of the pensioner couple is 127,041 FIM in income related
pension plus 5,976 FIM basic pension minus 33,575 FIM in personal tax, in total
99,442 FIM.
The net compensation percentage is 99,442 / 142,928×100 = 69.6.
The decrease in disposable income is 30.4 per cent compared to the APW-couple.