tag:blogger.com,1999:blog-27946614.post3046699841961348161..comments2024-03-07T14:43:21.888-08:00Comments on Whatever I want to write about: The poor problems of longer life expectancySriram Khéhttp://www.blogger.com/profile/06907731254833435446noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-27946614.post-47516790411093269212014-12-19T18:23:34.848-08:002014-12-19T18:23:34.848-08:00Oh, there is no denying that the characters I ment...Oh, there is no denying that the characters I mentioned are like most people anywhere on the planet who don't seem to think about their old-age selves and don't plan enough for the needs ... And, yes, the power of compound interest will make life simpler if only ...<br />But, two issues:<br />1. the changes in terms of life expectancy have been phenomenally quick for most humans to instinctively understand the implications. Thus, I assume that for the most part we continue to operate with the mentality that has kept us going for thousands of years--which is to feast when we have because who knows whether or not we will be alive tomorrow.<br />2. The "irresponsible" spending you mention is a solid reason why the fundamental assumption of the rational consumer in economics is wrong. Homo Economicus exists only in econ textbooks but the real people in the real world are far from rational. Some of the interesting ground-level observations in the book "Poor Economics"--like how a poor person might forego buying a banana and instead buys unhealthy and fatty food--are revealing in how "irrational" we humans are. In our analytical discussions, we forget that when it comes down to it, we are not that much more "evolved" from the animals that we really are ... <br />Sriram Khéhttps://www.blogger.com/profile/06724218458246880137noreply@blogger.comtag:blogger.com,1999:blog-27946614.post-76527452290222017742014-12-19T02:26:41.440-08:002014-12-19T02:26:41.440-08:00I don't agree for too much sympathy on the eco...I don't agree for too much sympathy on the economic front (I am all for sympathy on grounds of loneliness, some horror diseases, dementia, etc all associated with old age).<br /><br />Too many of us do not prepare financially for old age and then suffer the consequences. Savings of Rs 5 per day from the age of 20 to the age of 60 (working life), will result in a corpus of Rs 1 million on retirement - decent enough to live reasonably OK. In India, such a scheme is called the Public Provident Fund with almost guaranteed returns and no losses. Throw in medical insurance taken early in life and again , barring a disaster, you are covered reasonably. The people you have quoted as examples in your post can all save Rs 5 per day. The real problem is people take on debt ridiculously (for a a house they can't afford or a marriage function or dowry or some rubbish like that). They don't save regularly and systematically and blow up money when the times are good. The good years go by quickly and when old age comes, there is no money.<br /><br />So economically, I do not have much sympathy. Its other old age issues which are gut wrenching.Rameshhttps://www.blogger.com/profile/11782192840421019943noreply@blogger.com