pay some long-term expenses. (High savings, low dissavings) Middle tier people who have middle income, they show some aspects of savings and dissavings during their life-cycle, specially when we think about pensions and health shocks or diseases we can see that medium income people try to save as much as they can during their life-cycle, and once they face a health shock or when they start getting less pension, a significant drop in the saving account can be noticed, which means an increase in the dissavings. Inflation and dissavings Another reason of dissaving is that when an individual is expecting an increase in the inflation rate, they would be willing to consume more and more of the current saved account as they expecting the value of money to be less. Dissaving at the retirement age People at the age of 20 when they start working and making income their income curve starts exceeding the consumption line which is when they start saving money. Until they reach the retirement age which is 65, their income curve start receding the consumption curve which is where dissaving start taking place; this is mainly when an elder start deducting from his saving amounts for his daily expenses and other emergencies. Governments dissavings Dissavings can also occur on the macroeconomic level, that’s when the government tend to spend all the accumulated savings and the available funds, specially when a natural disaster happens such as an earthquake, wildfire, or hurricane. Other causes might be due to civil disorders, hyperinflation, or war. A real example of dissaving In December 2019 until January 2019, when the US faced a governmental shutdown, most of the governmental employees were forced to take an unpaid leave from their work. The consequence of this forced unpaid leave is that these employees started to dissave just to keep up with their daily living expenses and basic obligations, even if it wasn’t their fault. Intro The life-cycle hypothesis of saving, of Ando and Modigliani, proposes that people work and save when they are young and retire and dissave when they become elderly. However, this theory is not fully verified, at least in France. The savings rate is falling due to the aging of the population. In fact, the savings rate continues to increase beyond the age of 50, reaching 22.5% for those over 60. This phenomenon is undoubtedly explained in part by the concern