Économie et Statistique n° 441-442 : Pension systems and their reforms; assessments and projections
DESTINIE 2 Microsimulation Model: Main Characteristics and Initial Results
DESTINIE is a dynamic microsimulation model developed and used at INSEE since the mid-1990s. Its main applications concern retirement pensions. Work on a new version began in 2005 and this article describes its main characteristics. The aim of the redesign is to obtain a more flexible tool. The new version comprises two separate modules: (1) a generator of demographic and occupational event histories, which has been made more consistent with demographic and active-population projections; (2) a pension-benefits simulator to construct customized pension projections based on the event histories obtained from (1). A few examples illustrate the new model's simulation capabilities. One advantage is that benefits can be calculated at household level. The model shows, for instance, that pensioners' relative living standards are likely to stabilize at 70-75% of those of economically active persons by 2050. This projection excludes asset income and imputed rent.