Lithuania faces significant pension gap compared to EU average

Preliminary 2025 data from Eurostat indicates a significant pension gap in Lithuania. The typical pension in the country is approximately 37% of the typical gross salary for an older worker. This stands in stark contrast to the European Union average, where the ratio of gross earnings to pensions is approximately 60%.

To illustrate this gap, a worker earning a gross monthly salary of €2,000 would receive a pension of roughly €740 based on current statistical trends. Experts suggest that addressing this disparity requires early engagement with various savings mechanisms, including the second and third pension pillars, independent investment capital, and other accumulated savings sources.

In the context of investment management, traditional lifecycle fund models—which shift assets from stocks to bonds as retirement approaches—are being scrutinized. While these funds typically begin reducing equity exposure around age 47 to minimize volatility, some financial perspectives suggest that such shifts may not align with the long-term investment horizons of individuals who expect to live several decades past retirement.