Financial Services, Funds, Lithuania, Pensioners

International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 06:08

More than 3 bln EUR already accumulated by pension fund participants in Lithuania

BC, Vilnius, 20.07.2018.Print version
The assets of 2nd pillar pension funds operating in Lithuania exceeded 3 bln EUR and at the end of June 2018 accounted for 3,082 mln. EUR. The performance of the majority of the pension funds was better in the second quarter of this year than in the first, while the 10-year long-term return has been positive.

This year the assets of pension fund participants have been mostly increasing due to the latest contributions, while financial market fluctuations at the beginning of the year had a negative impact on this year’s funds return. It is only natural that the short-term returns of pension funds are fluctuating, however it is most important that the funds earn higher yields in the long term and the average return exceed the depreciation of currency due to inflation,’ said Dalia Juškevičienė, Principal Specialist of the Long-term Saving and Investment Product Supervision Division at the Bank of Lithuania. 


In the first half of 2018, the overall weighted rate of return of all pension funds accounted for –0.02%, while the average 10-year annual return stood at +3.62%. Having improved performance in the second quarter, as in the first quarter, equity share pension funds recorded positive returns (+1.19%, 10-year average annual return stood at +5.87%). 

Other pension fund groups recorded negative returns in the first half of this year: medium equity share pension funds recorded a return of –0.25% (10-year average annual return stood at +3.95%), small equity share pension funds – of –0.44% (10-year average annual return stood at +4.15%), conservative investment pension funds – of –0.29% (10-year average annual return stood at +2.92%). 

Average annual inflation stood at 2.5% in the last 10 years. 

2nd pillar pension funds had 1,299 thousand participants at the end of June 2018 – about 10 thousand more than in the end-2017. 59 thousand participants accumulated 101.18 mln EUR in assets in the 3nd pillar pension funds. The overall weighted rate of return of these pension funds in the first half of 2018 stood at –0.30% (10-year average annual return stood at +3.68%). In this period, conservative pension funds investing in bonds recorded a return of –1.27% (10-year average annual return stood at +4.20%), mixed investment pension funds – of –0.20% (10-year average annual return stood at +4.06%), while equity pension funds yielded a positive return of +0.28% (10-year average annual return stood at +3.68%).







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