Why the changes in consumption?

When I run an economic model I'm finding a jump in consumption in out years... what typically contributes to this?


dan royer's picture

Borrowing constraint. You run out of regular assets (non retirement assets) to smooth consumption and you don't want to borrow. Not uncommon. There's different ways to solve that depending on the cause. If you are later in life or in retirement, use Special Withdraws maybe from retirement accounts. But it could be lots of things. If you have special expenditures, see if those are necessary etc.

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