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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 × 137,046 =
82,228 FIM for the husband plus 0.6 × 68,523 = 41,114 FIM for the wife. There will
be no national pension for the husband. The national pension for the wife, 12 × 446
= 5,352 FIM and 12 × 1,681 = 20,172 FIM, in total 25,524 FIM, will be means
tested to 6,427 FIM. The total pension is 82,228 + 41,114 + 6,427 = 129,769 FIM.
The gross compensation percentage is 129,769 / 205,569 × 100 = 63. The disposable
income of the pensioner couple is 96,419 FIM.
The net compensation percentage is 96,419 / 135,599 × 100 = 71.1.
The decrease in disposable income is 28.9 per cent compared to the APW-couple.

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1) In the husband’s income bracket the daily allowance is calculated in this way: 303.33 + 0.4 (0.955 ×
137,046 - 130,000) / 300 = 303.33 + 1.17 = 304.50FIM. For 18 days the compensation is 18 × 304.50
= 5,481 FIM.
2) In the wife’s income bracket the daily allowance is calculated in this way: 0.7 × (0.955 × 68,523) / 300
= 152.69 FIM. For 263 days the compensation is 263 × 152.69 = 40,157 FIM.
’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 535 FIM/month in 1996,
i.e. 6,420 FIM on an annual basis. Compared to the situation without children the
increase in disposable income is (6,420 / 135,599) × 100 = 4.7 per cent when the
family has one child (6 years old).
For child no. 2 (3 years old) the allowance is 657 FIM/ month, i.e. 7,884 FIM on an
annual basis. Compared to the situation without children the increase is (6,420 +
7,884) / 135,599 × 100 = 10.5 per cent when the family has two children (6 and 3
years old).
For child no. 3 (1 year old) the allowance is 779 FIM/month, i.e. 9,348 FIM on an
annual basis. Compared to the situation without children the increase is (6,420 +
7,884 + 9,348) / 135,599 × 100 = 17.4 per cent when the family has 3 children (6,
3 and 1 year old).