DGL Calculation Aid
Sustainable Separate Living, yes or no?
What are the financial consequences of 'Sustainable Separate Living' (DGL)?
In many government schemes, a citizen has to deal with various government agencies. This is also the case when making a choice between the single AOW pension or the married AOW pension in the case of 'Sustainable Separated Living' (DGL). A person entitled to AOW who is married or has a registered partner, and whose partner moves permanently to a care institution, can opt for a single AOW pension. The gross single AOW pension is higher than the gross AOW pension for married people. According to the law, you do not have to dissolve the marriage with your partner in order to receive the single AOW pension in this situation. This is also known as 'Sustainable Separate Living'. The single AOW pension amounts to 70% of the statutory minimum wage and the AOW pension for married persons is 50% of the statutory minimum wage. Because the single AOW pension is higher than the AOW pension for married people, the total income increases if you opt for 'Sustainable Separated Living' in this situation. This increase in income can have financial consequences for both partners. Think of the cancellation of a certain allowance, for example a rent allowance or a health care allowance. In addition, an increase in income may result in having to pay a higher personal contribution for the Long-term Care Act (Wlz). A citizen entitled to AOW who finds himself in this situation will receive a letter from the SVB stating that they can choose whether or not to be classified as 'Sustainable Separated Living'. In order to make such a choice, it is therefore important to have insight into the financial consequences of a change in AOW pension. In the current situation, citizens can contact various authorities for more information, including the CAK and the Tax Authorities. However, this referral does not provide the certainty that it will provide insight into the financial consequences.
At Novum, we are investigating whether we can help citizens in this situation to gain insight into the financial consequences of 'Sustainable Separated Living' (DGL). We do this by designing, building and testing a DGL Calculation Tool with the citizen as the end user.
PLEASE NOTE: This is a Proof of Concept. No version of the DGL Calculation Tool is in production and is therefore only for testing.
How does the Proof of Concept of the DGL Calculation Aid work?
The DGL Calculation Tool is currently a Proof of Concept of a calculator built in Mendix (low-code). A series of complex calculation rules and configuration values is linked to a user interface within Mendix. The end user is asked via a wizard to enter values in the field of income, wealth, housing and care. The DGL Calculation Tool calculates the financial consequences of a single or married AOW pension on the basis of the values entered by the end user. Ultimately, the end user gains insight into the financial consequences based on a graph as well as a representation in numbers. A line graph shows the difference in disposable income between having a single AOW pension (DGL) or a married AOW pension (Non-DGL). What plays a part in this situation is that the possible consequences of a higher income can only be noticed two years later. This is because of the T-2 processing within the Tax Authorities. The DGL Calculation Tool takes this into account by also displaying the results for future years. For example, an end user can see how the financial situation changes over the years and can support a choice between the single AOW pension or the married AOW pension.
For privacy reasons, entered values are not stored anywhere, nor in the interim. An end user will have to enter all requested data during the user flow in one session. When validating the added value of the DGL Calculation Tool, data can be imported in due course. This relieves the end user's worries and no longer needs to enter your own data.
What is happening among this target group? Find out needs.
From Novum we started with a fairly broad research question: What obstacles do the elderly encounter when making a choice in 'Sustainable Separated Living'? This question turned out to be extremely suitable for launching a Design Thinking process from the start. Start by empathizing with your customer. In collaboration with the ANBO Ouderenbond, we conducted empathetic research among members entitled to state pension who are in a situation where their partner has moved or is going to move to a care institution. For example, in conversation we asked about:
- how do they experience the situation/how did they experience the situation?
- what is going well and what is not?
- where are their needs? what do they need?
In collaboration with the Ouderenbond ANBO, we managed to speak to no fewer than N=7 respondents who belong to the target group. Thanks to candid conversations, we have gained insights into what they encountered when their partner unfortunately had to move to a care institution. The fact that these people are in a difficult situation has been emphasized during several conversations. In addition, they indicated that they had to arrange many things. From choosing a healthcare institution that is familiar to them to having to make a choice about a single or married AOW pension.
Learning objectives during the empathic inquiry:
- AOW beneficiaries (DGL) do not know what the Sustainable Separate Living option means
- AOW beneficiaries (DGL) in a heavy emotional period are less able to make a calculation
- AOW beneficiaries (DGL) find making the choice in DGL financially complex
- AOW pensioners (DGL) need a calculation tool
- AOW beneficiaries (DGL) do not know where to find information about the consequences of DGL
At the end of the interviews, we asked the respondents how they made a choice about 'Sustainable Separated Living' at the time. Then came the question of whether, and if so what help a digital calculation aid can offer. They were allowed to respond to a prototype of the DGL Calculation Tool and went through the user flow on the basis of an assignment. Testing the prototype gave hopeful insights.
- A large part of the respondents indicated that they spend less time choosing DGL if they can use the calculation tool
- 50% of the respondents indicated that they had little or no effort to use the calculation tool (CES score)
- Respondents rated the use of the calculation tool with an average of 7.75 and would recommend it to family/friends.
The majority of the respondents responded positively to the concept of the digital calculation aid. Below you can read a number of quotes mentioned by respondents.
“If there had been that tool, I would have used it! Because I struggled with that calculation for a day and a half.”
“You have an immediate overview of the amounts we have listed and the calculation is done. It was all very clear.”
“I would reconsider DGL if it is more transparent. Make a quote just like with a mortgage application. In which the consequences are stated in the long and short term and whether no additional assessments are made.”
In addition to the above insights, we found that different characteristics can also be distinguished within the target group. For example, it depends on the situation but also on the employment history to what extent the respondent is able to calculate the financial consequences of the single AOW pension. The personas below represent the three subgroups from the research.
These are Personas. They are not individuals in themselves and they do not contain any actual personal data.
From Prototype to Proof of Concept (PoC)
During the analysis of the conversations, it was noticeable that many respondents indicated that they had used the digital calculation tool if it was available at the time of making the choice in DGL. We have decided to further design the concept in order to be able to further validate it with the target group. In addition to the assumptions in the field of desirability, we test whether the complexity of calculation rules can be programmed in combination with a user-friendly user interface.
And whether all this is possible through a low-code platform, in our case Mendix. We have linked a Visual Basic developer and calculation rule specialist from the Ministry of Health, Welfare and Sport to a Mendix developer, and have started building the Proof of Concept. Our team has gradually expanded with a Technical Specialist from Novum, an Innovation Designer and a UX Researcher. In order to validate whether our calculation rules are equal to the calculation rules that are used within the chain, we sought out cooperation with chain partners. The CAK and the Tax and Customs Administration have provided extensive assistance in validating the calculation rules. Are the calculation rules that we program in Mendix correct? Do they correspond with the policy rules of the chain partners? After extensive validation, a first workable version of the Proof of Concept was delivered. Time to go back to the target group and test whether this Proof of Concept of the DGL Calculation Tool meets the needs of the end users.
Learning objectives during the PoC phase:
The Calculation Tool helps people entitled to AOW (DGL) in gaining insight into the financial consequences of Sustainable Separate Living (viability)
The Calculation Tool and its calculation rules provide a reliable result based on input of the data of the end user (feasibility)
Without the Calculation Tool, people entitled to AOW (DGL) are unable to calculate the financial consequences of Sustainable Separate Living (desireability) for themselves.
AOW pensioners (DGL) like to use the Calculation tool (desireability)
AOW beneficiaries (DGL) are able to find the necessary information that is required for the Calculation tool
We are far from finished learning. We are currently in the middle of a user survey in collaboration with research agency Motivaction. We interviewed a total of N=6 AOW beneficiaries who had a choice between the single or married AOW pension.