To remain competitive, keep a strong position in the job market and lock in stable and growing income for yourself, it helps to have the right qualifications and continually grow. In Lithuania, though, only less than one-fifth of people invest in their professional growth. The main reasons for not doing more in this area are a lack of money and not seeing the need.
These attitudes were revealed by a representative survey of Lithuanian residents conducted on behalf of INVL Asset Management, one of Lithuania’s leading asset management companies, in February this year by Spinter Tyrimai.
Not investing because they lack money or see no need
The vast majority of people in Lithuania do not invest in their professional growth – only 18.4% of those surveyed do. Men more often invest in their professional growth (21.4%, vs 15.7% of women), as do respondents age 26-45, those with the highest level of education, those in the highest-income group and residents of major cities. The group of people most concerned for their professional growth is top and mid-level managers, with 73% of them saying they invest in that.
Asked why they do not invest in personal growth, 40% of non-investors said they do not have enough money left for that and 39%said they do not see any need for it. Almost a quarter of respondents (24%) said that growth in the course of their daily work is enough for them, and 12% said that their employers take care of investing in this area.
“The survey showed that people in Lithuania are not inclined to invest in their own professional growth. What’s more, the ones who are least concerned about that are people who need it more: those with lower incomes and less education, and residents of smaller towns and villages,” said Dr Dalia Kolmatsui, Head of Pension Funds & Retail at INVL Asset Management.
She said that while a large share of the respondents claim they lack the money for professional growth, an equal part say they see no need for it. “It’s a vicious circle. When you don’t give any attention to professional growth, you have fewer chances to raise your qualifications, learn new things and earn more,” Dr Kolmatsui said.
A long-term financial plan would help find money for professional growth
Asked to estimate how much money should go to professional growth each year, 44% of respondents could not name an amount, with 22% each saying 200 euros and 500 euros a year. Meanwhile, 10% said up to 1000 euros and 2% said more than 1000 euros a year should be set aside for that purpose
According to Dr Kolmatsui, when it comes to personal growth, the key is to identify a relevant area and give it constant time and attention. “It’s worth stressing that to grow you don’t have to have a lot of money, that a lot of information is available online these days. And, if needed, it can help to find the money if you make a long-term financial plan that specifies your goals and the ways they’ll be achieved,” Dr Kolmatsui said.
She said each of us has to regularly assess their position in the job market to make sure that the profession and qualifications we have can ensure enough income over the long term. “Even if you’re in a profession that has a good future, it’s important to grow and develop, since competition is big and someone who neglects their own growth can lose their job, or the pay they get many not increase the way it could,” Dr Kolmatsui noted.
Also interesting, in her view, is that the survey shows a significant share of people in the country – a full 22% – asked what they intend to live on in retirement, said they intend to continue working, and that share has increased in recent years. “These people will also have to offer the labour market relevant services in the future, and that means professional growth is crucial,” Dr Kolmatsui said.
INVL Asset Management had the representative survey of investment and saving habits of people in the country conducted in February this year by Spinter Tyrimai. For the survey, 1006 Lithuanian residents aged 18 to 75 were interviewed.
INVL Asset Management, which is part of the Invalda INVL group, manages second and third pillar pension funds and mutual funds as well as alternative investments and individual portfolios. Over 190 000 clients in Lithuania and Latvia and international investors have entrusted the Invalda INVL group’s companies with the management of more than 600 million euros of assets.
INVL and Šiaulių bankas merged their retail services as of 1 December 2023.
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INVL and Šiaulių bankas merged their retail services as of 1 December 2023.