Nearly two-fifths of residents in Baltic States invest in various financial instruments, according to results of SEB Bank’s Baltic residents survey. In Latvia 38% of residents are engaged in investments and 39% in Lithuania and Estonia.
Latvian residents and Estonian residents are generally braver when it comes to investments, according to the survey.
14% of Latvian and 12% of Estonian residents currently not engaged in any form of investments say they have plans to start making investments in financial instruments in the coming months. In Lithuania, on the other hand, only 6% of residents consider starting making investments in the near future.
Estonian residents are generally braver with investments than their neighbours – 8% of residents there have plans to increase their investments.
6% of Latvian residents have plans to increase their investments as well. Lithuanian residents are more cautious than their Baltic neighbours, as only 5% of interviewed residents have plans to increase their existing investments. 12% of respondents mentioned having plans to reduce their investments. Only 11% of existing investors in Latvia and Estonia said they had plans to reduce investment amounts.
Looking at the most popular financial instruments residents pick to invest their money, it can be concluded that the most popular options in Latvia are third level pension (60%), accumulative life insurance (36%) and investments into shares of different companies (20%).
Lithuanian residents show similar priorities, as residents there decide to invest in accumulative life insurance (43%), third pension level (41%) and company shares (28%).
Third level pension is also popular in Estonia, as 56% of residents use it. Residents in Estonia are also more active with investments in shares (52%) and investment funds (23%).
“Looking at results of the survey, we can conclude that residents in Latvia and Lithuania pick more stable and less risky options, whereas residents in Estonia are prepared to take on greater risk and, potentially, receive greater returns. It should be added that none of these options are better or more correct that the other. They differ in terms of investment goals and risk tolerance,” explains SEB Bank private financing office head Elina Kalnina.
Looking at Baltic residents’ habits when it comes to making savings, SEB Bank concludes that Latvians have managed to increase theirs rather well over the course of the last six months. 13% of Latvian residents have increased their savings. Estonia is not far behind, where 11% of interviewed residents have successfully increased their savings. In Lithuania the situation is less positive when compared to the other two Baltic States – savings have increased for only 9% of residents.
Kalnina does add, that, despite the positive growth trend, Estonia also has the largest number of residents who have had to dip into their savings recently – 53% of Estonian respondents admit having done that (32% in Latvia and 28% in Lithuania).
Norstat performed the survey following a request from SEB Bank. 3,010 respondents aged 18 to 74 years participated in it. (BNN/Business World Magazine)
