2026-04-24 07:30:00
INVESTMENT
Pension Money Has Reached Accounts: How to Put It to Work So It Doesn’t Get “Spent Away”?
Residents who decided to withdraw from the second-pillar pension system have already received their accumulated funds. However, alongside the money reaching their accounts, another side of this decision is becoming increasingly apparent – while withdrawing the funds was clear to many, the question of how to manage and put this money to work further does not seem to have been fully thought through.
According to Justas Paliukėnas, Head of Investor Communication and Project Quality at the crowdfunding platform “Profitus,” recent trends already reflect this – it is becoming evident how people behave after withdrawing funds from the second-pillar pension system. In public spaces, people have not only actively shared the amounts they received from pension funds but have also been considering how to use this money – from everyday purchases to larger expenses or investments. At the same time, some businesses, such as travel agencies or home appliance retailers, are observing increased customer activity.
According to J. Paliukėnas, these trends clearly reveal the direction of people’s financial behavior.
“This stage often shows not only an emotional reaction but also whether there was a predefined role for this money. We see that people are actively reacting to the received funds: sharing it publicly, considering different usage scenarios, and in some cases, increased consumption is already visible. This is a natural reaction, but it also reveals another side – some people were waiting for this money but had not fully defined how they would manage it. In such situations, decisions are often made impulsively, and in finance, this is rarely beneficial,” says J. Paliukėnas.
According to the expert, the current change in Lithuania has fundamentally altered the logic of investing – for many residents, this is the first time they must decide themselves how to manage accumulated funds. The previously functioning passive accumulation system is giving way to active decision-making, which naturally brings uncertainty and impulsiveness. According to the specialist, similar situations have already been observed in other countries.
“A similar shift was seen in Estonia, where after residents were given the opportunity to withdraw pension funds, a significant portion was used for consumption or remained uninvested. This only confirms a general principle – without a clear direction, capital usually does not create long-term value. Until now, pension accumulation in Lithuania functioned as a passive system that did not require active decisions. With the option to withdraw funds, the situation changes fundamentally – responsibility for capital management shifts to the individual. If this decision is not accompanied by a clear strategy, funds are usually either spent or remain idle, thus losing their potential to generate returns,” he explains.
It Is Important to Change the Mindset
According to J. Paliukėnas, when deciding what to do with the withdrawn funds, it is essential to fundamentally change the perception of them – they should not be seen as extra money, but as part of already accumulated capital. According to him, this perspective often determines whether decisions will focus on short-term results or long-term financial benefit.
“It is important to understand that for most residents, the amounts withdrawn are not large enough to fundamentally change their financial situation today, but they can become a significant foundation for long-term capital growth if used properly. The most important thing here is not the amount itself, but how it is used,” he says.
To make use of this potential, J. Paliukėnas emphasizes that when investing, it is important to follow several key principles – consistency and capital allocation.
“Investment results are determined not by individual decisions but by a consistent process – value is created over time, not through one-off actions. Capital allocation is also important – by investing in different projects, asset classes, or regions, it is possible to reduce risk and ensure more stable returns, especially today when the market offers no shortage of options promising disproportionately high returns.
In practice, this means the need to have the ability to allocate capital and invest it consistently. Such opportunities are provided by various investment solutions today – for example, on platforms like ‘Profitus,’ investors can distribute funds across different projects and markets, invest in business loans secured by real estate, and thus build a balanced portfolio. This allows not only diversification but also provides a clearer asset base and a greater sense of control when investing,” explains J. Paliukėnas.
He adds that when starting to invest, no less important than having a consistent strategy is ensuring that the chosen investment method is clearly understandable and easy to apply in practice.
“For some people, this is the first real decision where they must manage accumulated capital themselves, so overly complex or difficult-to-understand models can become a barrier to consistent investing. In such cases, the investment process must be clear and easy to manage – only then does it become practically applicable,” says the Head of Investor Communication and Project Quality at “Profitus.”
