El Asunto Una encuesta realizada por la AMAFORE señala que el 62 por ciento de los entrevistados está de acuerdo con la afirmación que dice: "No he planeado mi futuro, pero pienso que Dios me ayudará cuando sea una persona mayor".
Life Cycle Model To illustrate the LCM in a world without uncertainty and a zero interest rate, consider a 25-year-old who will work for 40 years and be retired for 10 years. He earns $25,000 each year so his total human capital or wealth (the present value of his lifetime earnings from work) will be $1,000,000
Life Cycle Model The $1,000,000 of human capital has to be consumed over the individual’s 50 years of remaining life. Since he values smooth consumption over his lifecycle, he can spend $20,000 a year and die with all his assets exhausted.
Life Cycle Model To achieve this spending pattern, he saves $5000 a year whilst in work. At retirement he will have accumulated a pension fund of $200,000, which can be drawn down at the rate of $20,000 a year.
Life Cycle Model In the above example, the individual had no inherited wealth and leaves no bequests. Suppose instead he inherits $250,000 in financial assets. His total wealth is the sum of his human and financial wealth, namely $1,250,000. He will now be able to spend $25,000 a year and die with zero assets. Consumption=f(Wealth derived from income or sale of assets)