Projection bias influences the life-cycle of consumption. The immediate utility obtained from consuming particular goods exceeds the utility of future consumption. Consequently, projection bias causes "a person to (plan to) consume too much early in life and too little late in life relative to what would be optimal". Graph 1 displays decreasing expenditures as a percentage of total income from 20 to 54. The period following where income begins to decline can be explained by retirement. According to Loewenstein's recommendation, a more optimal expenditure and income distribution is displayed in Graph 2. Here, income is left the same as in Graph 1, but expenditures are recalculated by taking the average percentage of expenditures in terms of income from ages 25 to 54 (77.7%) and multiplying such by income to arrive at a theoretical expenditure. The calculation is only applied to this age group because of unpredictable income before 25 and after 54 due to school and retirement.