About 40 percent of participants in Lithuania’s second-pillar pension saving system left the scheme in the first quarter of 2026. The figure does not by itself show that residents have given up on preparing for retirement, but it raises a practical question: will the returned money become part of a long-term plan, or be absorbed into short-term spending?

This international adaptation is based on a BNS-published comment by Giedrius Rimša, president of the Lithuanian Life Insurance Companies Association, and survey data commissioned by the association in the first quarter.

The 40 Percent Exit Figure Does Not Show Where the Money Goes

Lithuania’s second-pillar pension reform gave many residents a real choice: remain in the system, stop saving through it, or look for other long-term saving tools. According to Rimša, leaving the second pillar does not necessarily mean a person no longer wants to save for retirement.

The main risk appears when the decision is made without a clear plan. For some people, the returned funds may become a starting amount for Lithuania’s third-pillar pension system, exchange-traded funds, life-insurance-based saving, real estate investment or another long-term instrument. For others, the money may simply become a consumption reserve with no remaining link to retirement goals.

For international readers, Lithuania’s second pillar is a funded pension saving arrangement separate from the state pension. The state pension is administered through Sodra, Lithuania’s State Social Insurance Fund Board. The reform matters because it changes how individuals think about the balance between public pension income and private saving.

Survey Data Points To A Gap Between Expectations And Contributions

The survey commissioned by the Lithuanian Life Insurance Companies Association suggests that many residents assess their future retirement needs relatively realistically. One quarter of respondents said that, in addition to their Sodra pension, they would need at least 600 euros per month for a dignified life in old age.

Another 28 percent said they would need up to 900 euros in additional monthly income, while a further 28 percent indicated more than 900 euros. That means a significant share of respondents see retirement not only as a period of basic expenses, but as a life stage requiring a separate financial source.

The contribution side looks more modest. One fifth of respondents would be prepared to allocate only up to 50 euros per month for additional saving, while almost one quarter would set aside between 51 and 100 euros. A minority said they were ready to invest larger sums regularly.

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