I am not sure what the exact simplified life-cycle model is , but could you give me any explanation for the relationship in the vertical and horizontal line? Cheers.

The ( very ) simplified life-cycle model presented a FEASIBLE consumption plan . Y , C, A Maximum Total amount saved during wealth at working life : ( ( T - LI L / T ) Y = 40 X 1 / 3^ retirement 40 X 1 / 3 = 13. 31 Total amount consumed during retirement : 20 X 2 / 3 = 13. 3' Replacement rate : Retirement consumption / | = = = = = = = = = = = = = = = = = = = = pre- retirement income = ( 2 / 3 1 / 1 = 66 . 67% Y = 1 -S = Y - C = 1 / 3 C = LY / T = 2 / 3 Dissaving 20 60 80