Commentary by Gabrielė Gegevičiūtė, Investment Project Manager at Capitalica Asset Management, SBA Group’s Investment Management Company
Almost half (46%) of Lithuanians expect an annual return of up to 5%, according to a representative public survey conducted by Spinter Tyrimai on behalf of Capitalica Asset Management. Interestingly, this expectation is most common among women. Meanwhile, men have higher return expectations, anticipating around 6–10% annually. The survey revealed that women tend to make investment decisions more cautiously and are less inclined to take risks. But does this cautious approach contribute to their success—or lack thereof—in investing?
It would be a mistake to assume that women’s caution prevents them from achieving the same impressive results as men. On the contrary—responsible investing and risk mitigation help ensure stable long-term investment growth.
However, it is concerning that, despite their potential to achieve even better investment results than men, women remain significantly less engaged in investing. For example, a study by Vanguard found that the average American woman has saved about 31,000 USD for retirement, while the average American man has accumulated 45,000 – a 14,000 USD difference.
That said, as generations change, the situation is gradually improving abroad. According to Fidelity Investments, 7 out of 10 Gen Z women are currently investing, compared to 6 out of 10 Millennial women. Looking at older generations, the situation is more concerning—only 55% of Gen X women choose to invest.
Progress Needed for Both Lithuanian Women and Men
Interestingly, not only women but also men in Lithuania invest less frequently than their Western counterparts. The Spinter survey showed that in 2024, only about one in four Lithuanians (36.1%) invested in stocks, bonds, deposits, real estate, second-pillar pension funds, or other pension funds.
Regarding women’s investment preferences in Lithuania, most of them this year chose bank deposits (44.7%). Other popular choices include alternative investment instruments (19.8%), real estate (15.2%), open-end investment funds (13.2%), stocks and closed-end investment funds (10.7%). Only 5% of women opted for bonds, according to the Spinter survey.
When looking at the age of female investors in Lithuania, trends here also differ somewhat from those in Western countries. Similar to men, women over 30 are the most active investors. This is the stage in life when people typically start earning higher incomes and can allocate part of their earnings to investing. Additionally, investment decisions are often driven by the need to plan for major life purchases—such as buying a first home—or important life events, such as weddings or family expansion. These financial commitments require additional funds, which are difficult, if not impossible, to accumulate quickly through traditional saving alone.
A River for Some, a Pond for Others
There are two ways to view money. Some people see it as a constantly flowing river, while others view it as a still pond. The first group perceives income as a continuous stream that must be spent or redirected. Sometimes the river overflows, sometimes it dries up, but it never stops flowing. The second group sees money as a pond—something that requires constant effort to grow. The pond can expand significantly, but it can also dry up completely. In most cases, men tend to adopt the river mindset, while women tend to think of money as a pond.
What does this mean? As the Spinter survey results show, women, viewing money as a pond, invest more cautiously and carefully evaluate potential risks. Losing a significant portion of investment income could, metaphorically speaking, cause the pond to dry up. However, over the long term, this approach may allow them to accumulate more wealth than men, who tend to see money as a continuous flow of incoming and outgoing funds.
By choosing to invest, women build their financial independence. Therefore, those looking to start their investment journey should first explore their options beyond traditional bank deposits. While deposits are a basic financial safety net, they do not always protect savings from inflation. Alternative investment options include real estate, open-end and closed-end investment funds, stocks, bonds, and other non-traditional investment instruments.
Additionally, it is important not to hesitate to seek guidance from professional and licensed financial advisors, who can help clarify individual investment goals, risk appetite, and develop a well-diversified portfolio to achieve financial objectives effectively.
