Greta Mieliauskaitė: Long-term perspective and stability must prevail in the fight for pension funds

Greta Mieliauskaitė: Long-term perspective and stability must prevail in the fight for pension funds

Greta Mieliauskaitė, Managing Director of the Lithuanian Private Equity and Venture Capital Association

Lithuania today faces an important moment when pension funds can become a cornerstone of the country's economic growth and national security. According to the latest forecasts, pension funds could invest up to €3.6 billion in Lithuania's economy and defence infrastructure over the coming years. This opens up huge opportunities not only to ensure stability in the pension system but also to accelerate Lithuania's economic growth and strengthen national security.

The Lithuanian Venture Capital and Private Equity Association strongly supports the pension fund's increased investment in Lithuanian companies and strategic sectors such as energy and defence. This will not only provide long-term returns for pension participants but also strengthen the country's financial resilience and accelerate technological breakthroughs, ensuring competitiveness and national security.

Pension funds - the foundation for long-term growth

Pension funds are one of the key drivers of economic growth. They are stable and sustainable investments that can ensure a country's long-term development. If properly channeled, pension funds could provide a major boost to both economic growth and innovation by investing in Lithuanian companies and infrastructure projects.

It is important to understand that stable and strong pension funds play an important role in the venture capital and private equity ecosystem, which contributes directly to the country's economic growth year after year. In 2023 alone, Lithuanian funds invested €111 million in Lithuanian companies employing more than 16,000 people and completed more than 100 transactions.

Today, pension funds have the opportunity to significantly increase their investments in the Lithuanian economy. The Lithuanian Investment and Pension Funds Association (LIPFA) forecasts that these investments could grow to €3.6 billion over the next few years and that by 2028 as much as 25% of pension fund assets could be directed into the Lithuanian economy. This would increase the country's GDP and return on capital, strengthen the resilience of the economy and ensure sustainable growth.

The need for a stable system of pension funds

Ensuring stable and sustainable investment opportunities for pension funds is essential to achieve these objectives. Regulatory decisions should take a long-term perspective to add value for all participants in the system - current employees, future pensioners, the Lithuanian economy and security.

Pension funds today have the opportunity to be catalysts for innovation, financing long-term strategic investments and contributing to the strengthening of Lithuania. This is another important step towards a sustainable and strong future for our country.

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