Analytics, Financial Services, Investments, Lithuania

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.