The life cycle theory in consumption and its application in the analysis of dynamics of a standard of living

The theory of life cycle developed by F.Modigliani with co-authors, asserts, that income level fluctuates throughout human life and savings allow consumers to redistribute the income since the periods when its level is high, for the periods when it is low. Having considered pension strategy of the population at able-bodied age and practice of pensioners concerning additional sources of the income, it is possible to draw a conclusion that Russians do not level the consumption by means of savings throughout life cycle. It is necessary to give to the majority of Russians confidence of tomorrow and level of incomes on an extent not only month, but also several years, for formation of own strategy of consumption and savings of means throughout a life.