More than half of Lithuanians keep their savings in their current account and only one in ten invest their money.
Despite the rapid household income growth in the past two decades, assets that do not generate income and are not protected against inflation still make up a large part of people’s assets, Vaidotas Rukas, the company’s chief investment officer, said on Monday.
“Assets that are neither income-producing nor inflation-proof still account for a very large part. The better news is that assets that may protect money from losing its value have doubled compared with a dozen years ago,” he said at a news conference.
The survey, carried out by Spinter Tyrimai in late 2019, found that 36% of respondents protected their savings themselves, and 28% kept their money in a deposit account.
Based on 2017 data, as much as 72.2% of the Lithuanian population kept their savings in cash or deposits, compared with the European average of just 36.2%.
INVL Asset Management estimates that inflation has shaved 38%off the purchasing power of the euro in Lithuania over the past 20 years.
“The euro that was kept under the mattress or in a deposit account made no money. We think that exactly the same is going to happen in the future: money will lose about 21% of its value in the next 10 years,” Rukas said.