Pensim2 is a dynamic microsimulation

Microsimulation

-Introduction:Microsimulation is a category of computerized analytical tools that perform highly detailed analysis of activities such as highway traffic flowing through an intersection, financial transactions, or pathogens spreading disease through a population...

 model to simulate the income

Income

Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings...

 of pensioner

Pensioner

In common parlance, a pensioner is a person who has retired, and now collects a pension. This is a term typically used in the United Kingdom and Australia where someone of pensionable age may also be referred to as an 'old age pensioner', or OAP. In the United States, the term retiree is more...

s, owned by the British

United Kingdom

The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 Department for Work and Pensions

Department for Work and Pensions

The Department for Work and Pensions is the largest government department in the United Kingdom, created on June 8, 2001 from the merger of the employment part of the Department for Education and Employment and the Department of Social Security and headed by the Secretary of State for Work and...

.

Pensim2 is the second version of Pensim which was developed in the 1990s. The time horizon

Time horizon

A time horizon, also known as a planning horizon, is a fixed point of time in the future at which point certain processes will be evaluated or assumed to end. It is necessary in an accounting, finance or risk management regime to assign such a fixed horizon time so that alternatives can be...

 of the model is 100 years, by which time today's school leavers will retire. Pensim2 uses a lot of external alignment

Alignment

Alignment may refer to:* Alignment , secondary evidence used to associate features such as postholes* Alignment , in Israel from 1965 to 1992...

 figures. Pensim2 uses data from different data sources, e.g. BHPS, LLMDB

LLMDB

The Lifelong Labour Market Database is a panel data set, owned by the Department for Work and Pensions in Britain. LLMDB2 holds a 1% sample from the new National Insurance Recording System and is a fully representative sample of around 600000 people. LLMDB2 started to record the income and other...

 and the Family Resources Survey

Family Resources Survey

The Family Resources Survey is a survey carried out by the Office for National Statistics and the National Centre for Social Research on an annual basis, collecting information on the incomes and circumstances of private households in Great Britain...

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