P & R Vol.2 Issue 3
Publication Year : 2021

The youth not only require resources for their basic needs but also for investment in their human capital, while older, apart from basic needs, require significant resources for their declining health. The consumption not only varies by age but also according to the population structure of a country. Developed economies’ elderly population is increasing and thus have different age-specific consumption patterns from developing countries, which have a high proportion of the young population. Besides, in developing economies like Pakistan, consumption decisions are not individual but also depend on the collective decision within the family.Life-cycle deficit is at the core of these estimates. Since life-cycle deficit is calculated as consumption minus income, Figures 1 and 2 present the per capita and aggregate life-cycle deficits in terms of consumption and income. Consumption is the sum of private and public consumptions on education, health, and other consumption. Labour income is composed of labour earnings and self-employed income.