Policy Simulation Group

Pension Projection Models

Key Features of the PSG Models

The PSG models have a number of features that make them attractive for conducting U.S. pension and/or social security analysis. While other models have some of these features, the Policy Simulation Group is not aware of any other model that has this complete combination of features.

Click on the link for a more detailed description of each feature:

• stochastic microsimulation is employed at both the micro and macro levels
• easy to use because a run is specified using a simple run specification language (without any model reprogramming) and because output can be tabulated and graphed with provided tools
• well documented with respect to model inputs and outputs as well as model logic
• fast running both when executing a single run and when executing large numbers of runs
• extensively validated with respect to simulated life histories and aggregate pension and social security statistics
• publicly available because there are no data privacy restrictions and because a powerful educational version is made available at no cost
• broad pension analysis capabilities are available now and new reforms can usually be added easily
• broad social security analysis capabilities are available now and new reforms can usually be added easily

However, the models are not perfect, so we conclude with a list of missing analysis capabilities, some of which may be added in the future.