The role of actuarial savings in determining the optimal solution to the consumer's problem is thoroughly analyzed taking into account the effect of transaction costs. Equilibrium conditions are obtained and compared with the classical ones. A numerical example is worked out. In the companion to this paper mathematical foundations were established. A proper treatment of transactions costs was shown to be essential in modeling the decisions relating to the determination of an optimal savings mix. Two types of actuarial savings were shown to be mutually exclusive.