In economics, the life-cycle hypothesis (LCH) is a model that strives to explain the consumption patterns of individuals.
Elderly dissaving is also influenced by the present factors that materially prevent them from the possibility of spending their previous savings.
While the life cycle hypothesis predicts the income and the consumption patterns of the elderly population, a series of research papers published in the 2000s highlighted the role of other factors in making the elderly class of people among the income-poor alone, and not people who are both income and consumption-poor.
Those influencing factors are: the stock of assets and particularly the house property, the racial and scholarly background as well as the presence of family assistance network.
[3] According to another extended survey collected among "disadvantaged groups such as rural, female, less educated individuals" in Burkina Faso, the spread of mobile and easy-to-transfer money doesn't show any correlation with the level of saving for predictable events occurring in the future (such as consumption patterns during the age of retirement), while it increases the propensity to save for personal health emergencies and, in the second instance, for unpredictable events.