Survey: Women seek a bigger future pension, men more often invest

Most people in Lithuania think that for good quality of life after retiring they would need 75-100 per cent of their current income. The same level of income as they get now would be sought by 44 per cent of the country’s residents – 48.5 per cent of women and 39.7 per cent of men. Another 30 per cent of people – a third of men (34 per cent) and a quarter of women (27 per cent) – say 75 per cent of their current income would suffice for a quality life as pensioners. These trends were revealed by a survey of investment and saving habits commissioned by INVL Asset Management, one of the country’s leading asset management companies.

Interestingly, comparison of the two sexes’ financial views show that women not only have bigger demands for retirement income, but that they also more often think saving for a pension should begin earlier. Meanwhile, there are more men who say that they invest, and they also tend to allocate larger amounts for investments every month.

“The survey shows that most people in the country would like to maintain the same or similar income to what they currently get. And while naturally everyone has to find their own way to effectively manage their financial life, still, it’s clear that the earlier a person starts thinking about their old-age income, the more chances there are to choose varied forms of saving and investment, and to accumulate a pension over a longer period setting aside a smaller part of their income,” said Dr. Dalia Kolmatsui, Head of Pension Funds & Retail at INVL Asset Management.

Women more often think saving for old age should start earlier

The survey also revealed that women tend to start looking after their pension earlier. Asked, for example, the latest age when a person should begin accumulating a pension, one in three women (33.5 per cent) indicated that it should be between the ages of 19 and 25. Fewer men held that view: 28.9 per cent of male respondents.

Additionally, while 8.1 per cent of women would recommend starting to save for a pension as soon as one turns 18 and reaches the age of majority, among men only 6.6 per cent held that opinion. Starting to arrange for one’s pension between the ages of 26 and 35 is the recommendation of approximately 30 per cent of both men and women, while 16.1 per cent of men suggest beginning to do so between the ages of 36 and 45, compared with 13.5 per cent of women. In Dr. Kolmatsui’s view, it makes sense to set financial goals as early as possible, both as regards the present and for life several decades from now.

In terms of the sources of income people most often expect to rely on after retirement, the survey revealed that women are more favourably disposed to the opportunity to draw on money accumulated in pension funds during old age, with more than a third of them (36.1 per cent) mentioning such funds as a possible income source. Fewer men gave that answer: 32.7 per cent. It is also interesting that men more often than women contemplate living off savings (35.5 per cent vs 30.9 per cent), while the proportions intending to rely on the state social insurance pension are similar (88.7 per cent of men and 89.8 per cent of women). Among the respondents, 19.6 per cent of women and 20.8 per cent of men intend to work during retirement.

Men more often make financial decisions on the basis of their own experience

Although women more often favour starting pension accumulation earlier, they less often make financial decisions basing them on their own experience. While 40.6 per cent of men said they makes such decisions themselves, based on their experience, the proportion of women who said they do so was 36.1 per cent. Asked who they most trust for advice on financial matters, 28.7 per cent of women and 23.6 per cent of men indicated they seek the opinion of their spouse. It is interesting that looking at other most often answers in responding to this question, similar proportions of men and women named their parents (13.6 per cent and 11.3 per cent, respectively), consultants at a bank or financial institution (10.2 per cent and 10.7 per cent).

Looking at investing habits, the survey showed that men more often choose to invest: 18.7 per cent of men and 14.3 per cent of women indicated that they make investments. A larger proportion of men said they allocate 51-100 euros a month for investments: 37.5 per cent, versus 27.1 per cent of women. Women, meanwhile, dominate among those who allocate 20 euros or less a month for investments: 12.5 per cent of them invest that amount, versus 4.8 per cent of men. Interestingly, similar numbers of men and women said they invest 21-50 euros and 101-200 euros a month: 21 per cent and 15 per cent, respectively.

The representative survey of investment and saving habits was conducted for INVL Asset Management in February this year by the research company Spinter Tyrimai, which interviewed 1,011 Lithuanian residents aged 18 to 75.

INVL Asset Management is part of Invalda INVL, whose companies manage pension and mutual funds, alternative investments, private equity assets, individual portfolios and other financial instruments. More than 180,000 clients in Lithuania and Latvia as well as international investors have entrusted the group with over 540 million euros of assets.