Aviva group, which owns Commercial Union Lietuva Gyvyb?s draudimas, has commissioned one of the biggest opinion polls in the world for the fourth year running - it involves 80,000 people in 24 countries.
Aviva group, which owns Commercial Union Lietuva Gyvybės draudimas, has commissioned one of the biggest opinion polls in the world for the fourth year running - it involves 80,000 people in 24 countries. Habits, skills and attitudes to the use of financial resources are examined along with financial service trends in Lithuania and their differences compared with other countries of the world. In Lithuania, this poll has just been conducted for the second year and on Friday, Commercial Union Lietuva invited national journalists to attend a press conference to present the results of this research.
Who will take care of you in your old age?
According to this research, almost all residents of Lithuania believe that they should be taken care of by the government when they reach pension age - about 80% of the people from the age of 15 to 64 held this belief. When they reach retirement age (65 years), only one-third of the people have this expectation. Most people in developing markets think the same (Poles, Indians, Chinese, Russians and Turks).
There are great concerns about the future once a person reaches retirement age. People understand that it is very important to have enough money to live when they are unable to work anymore - however, in many countries, especially in Eastern Europe, only a minority of people take measures to protect themselves against poverty in old age. In Lithuania, 69 per cent are concerned about it; however, almost half as many are taking steps to arrange their pension - 40%. Men are more worried about pensions, but women take more active steps to address the matter.
What do we understand about the ways to save?
In countries where the market is more mature, people have a better understanding about a variety of financial services. In Belgium and in Germany they feel confident in their knowledge, while more than half of Lithuanians (just like Indians and Chinese) feel they do not understand anything about pensions, ways to save and about similar matters. The general public in Lithuania does not use a lot of terms of financial services and there is a lack of tradition in using financial services, however the main reason why people do not use long-term financial services is due to a general shortage of funds.
In Lithuania, 54% of people quote this as their reason, worldwide - 46%. About 40% of people in the countries where research was conducted think that financial planning for retirement is too complicated; in Lithuania this figure is 53%.
Are we more inclined to spend or to save?
Worldwide, people are more inclined to save than to spend - 29% of people are living for today. However, almost 40% of Lithuanians enjoy spending more than saving - similar to the Russian, Indian and Chinese people asked. In Lithuania, 43% of women and 35% of men are more inclined to live for each day. What are people saving for? Worldwide, people are mainly saving for unexpected eventualities (48%), except for Lithuanians and Italians, who are mainly saving for general expenses (23%).
Countries with more mature markets - US, Canada, Belgium, Australia, Ireland, Germany, France, UK - are noted because 32% to 48% of people are saving for an additional pension, meanwhile, only 11% of Lithuanians say they are saving for the same. Lithuanians are also saving for the following: home improvements, car or holiday (19%), health care (13%), unexpected eventualities (11%), family security (11%), the education of children or grandchildren (9%), starting a family or for the arrival of children (8%), the purchase of residential property (7%).
Countries in East Asia and Ireland are generally saving the most, whereas the countries saving the least are Romania, Poland, Lithuania, Turkey and Russia. In the countries taking part in the research, only 16% of people do not save at all; meanwhile, in Lithuania the proportion of big spenders is 37%.
If I came into some money...?
In the event of an unexpected financial windfall, Lithuanians would focus on their accommodation: 22% would spend on home improvements, 14% would buy their first or a second property, 6% would spend on their household needs (appliances, furniture, etc). 12%, when they had received the money, would start saving or would postpone spending, 9% would share with family and 8% would start a business of their own. Worldwide, the number of people who would save long-term or for their retirement is 19%. When men and women are analysed separately, women in Lithuania are more inclined than men to start their own business, to buy their own property or to go on holiday. It is interesting that men in Lithuania, more than women, are inclined to give to charity and to share their money with their friends or family, to do home improvements or to buy new appliances, to save long-term or to invest in education.
Main tendencies
The people in Lithuania are interested in modern financial services, but in comparison with other countries there are fewer long-term savers and planners, people who set their money aside for their pension, people who set money aside for unforeseen circumstances, financially aware people and also people who trust financial institutions. Compared with the worldwide average, there is a higher proportion of people in Lithuania who are not at all interested in financial services and are risk-averse, people who do not plan their finances, people who leave their pension at the mercy of their government as well as people who spend their money freely and are living for today. There is a significant group of people who plan their finances and always look for information and objective advice and would be willing to pay for good, high quality financial advice.
What are we doing to change the situation?
Commercial Union Lietuva Gyvybės draudimas is trying to educate the general public and to improve long-term financial planning services in our country:
- By educating and consulting their clients on the subject of financial planning. By encouraging clients to save for their future - in the way which is most appropriate for them.
- By teaching and by continuing generous investment to the professional knowledge of financial consultants.
- By trying to present the company material in a simple and clear way, to imaginatively explain the terms of the financial world and to supply additional financial and analytical information as requested by the client.
- By designing flexible long-term saving services with conditions that can be easily amended when family circumstances and objectives change.
- By working a lot in the area of social responsibility, where some of the set goals are to work for the benefit of the client in a transparent and open manner and to develop client's economic awareness.
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For additional information please contact:
Vaidotas Aleksiūnas
UAB "Commercial Union Lietuva Gyvybės draudimas"
Manager, Marketing and Public Relations
Telephone: (8-5) 269 06 20
Mobile (8 682) 222 01
E-mail: vaidotas_aleksiunas@cu.lt
Indrė Minderienė
UAB "Commercial Union Lietuva Gyvybės draudimas"
Specialist, Marketing and Public Relations
Telephone: (8-5) 269 06 10
E-mail: indre_minderiene@cu.lt
Notes to editors:
Commercial Union Lietuva Gyvybės draudimas is one of the leaders in life assurance and pension savings in Lithuania. Over 550 consultants are selling Commercial Union Lietuva Gyvybės draudimas services - they work in 15 branches and offices all over Lithuania. The company is owned by Aviva international group which has over 300 years of experience in the area of long-term savings. Over 40 million people in several dozen countries of the world use Aviva group services, including the United States, Australia and many European countries. Aviva is the world's fifth largest life insurer and has the largest funds under its management in Europe in the area of life assurance and pension funds.