What did Estonia’s pension reform show?

As discussions about pension reform become more frequent in Lithuania, attention naturally turns to one example – Estonia. Similar changes took place there back in 2021.

The first figures looked impressive:

• around 24% of residents withdrew their accumulated funds
• the total withdrawn amount exceeded €1.3 billion

However, the most interesting part became clear later.

In the short term, part of the money was spent on consumption – travel, home improvements, and larger purchases. However, a significant share of people chose to invest.

And this is where the key lesson emerges.

Studies and market observations showed that those who:

• invested,
• diversified their funds,
• had a clearer plan,

over time preserved or increased their capital.

Meanwhile, some residents who simply spent the money today no longer have either accumulated capital or additional returns.

In other words, the consequences of the decision became very clear after just a few years.

Estonia’s experience allows us to ask a very specific question today:
what would you do differently if you had to make the decision again?

This is exactly where the importance of planning comes in.

If you are considering investing, one option is to direct funds into real projects. Profitus platform investors finance business loans secured by real estate, investing in projects across different markets:

• Lithuania
• Latvia
• Estonia
• Spain

There is also an opportunity to distribute investments across multiple projects, thereby diversifying risk.

Estonia’s example has shown a simple but important truth:
the decision of what to do with your money today very quickly becomes a decision about your financial situation tomorrow.

We invite you to review the projects currently being funded on the platform.

Please note that investing involves risk.