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12.
Pensioner without former occupation. ’Single APW’
’Retirement’ at ’usual’ age, here 65 years
As already mentioned, there is no pension alone based upon age in Germany.
For persons without former occupation there is no pension. This is, of course, an
extreme situation, but it reflects the substantial factual difference between pensions
for men and women in Germany. Pensioners without a former work record and
without other means will receive social assistance. The basic rate is 538 DEM (aver-
age) per month plus 20 per cent for a single pensioner, in total 645.60 DEM per
month or 7,747 DEM in 1997. This is also the disposable income.
The 
net compensation percentage' (relative to the APW) is 7,747 / 33,349 × 100 =
23.2.
The 
decrease' in disposable income, relative to that of the APW, is 76.8 per cent by
this kind of retirement.

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152
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 the wife and husband have gained pension rights for 45 years
each. The husband is ’identical’ to the single pensioner in case 8. The wife is as-
sumed to have had half the income of her husband all the time. That has the impli-
cation, that she will receive half the pension of her husband, i.e. 13,715 DEM. On
these assumptions the combined pension for the couple will be 41,145 DEM in 1997.
The contribution to health and care insurance will be 7.65 per cent of the pension,
i.e. 3,148 DEM.
The pension is only ’partly’ taxed. Retiring at the age af 65 years, 27 per cent of the
pension is taxable, after deduction of health and care insurance payment. In this case
the taxable pension is lower than the minimum pension for which taxes are paid, and
no tax has to be paid.
Disposable income for the pensioner couple is 41,145 - 3,148 = 37,997 DEM.
The net compensation percentage is 37,997/53,579 x 100 = 70.9.
The decrease in disposable income for the APW-couple retiring when both are 65
years is 29.1 per cent.