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The work published by central bank economists Karolis Bielskis and Andrius Čiginas is based on data from the consumer and financial survey conducted in December 2017 – May 2018, which surveyed 1,664 Lithuanian households. This is the first time that such a study has been carried out in the country.
Their results showed that home ownership in Lithuania is one of the largest in Europe (93.2%). As a result, there is also a small wealth inequality (Gini coefficient of 0.589). At that time, the Gini coefficient of euro area assets is 0.695, and a higher indicator reflects greater inequality.
The survey also showed that Lithuanian households have accumulated an average of 84.3 thousand. assets, when the European average is almost three times higher and amounts to 229.2 thousand. euros The median of Lithuanian property (the value in the middle of the set) is 46 thousand. euros
The differences are surprising, but only at first glance
The research work of K. Bielskis and A. Čiginas dedicated to the discussion presents tables with the averages and medians of property and annual income for different groups of households.
It is clarified that the valuation of assets takes into account real estate and financial assets owned by the home, the managed company, vehicles and other valuables. It is deducted from various liabilities (such as mortgages). The study does not evaluate the money accumulated in the pension funds.
The collected data shows that 20%. Lower-income households have accumulated an average of 62.8 thousand. assets in euros. According to the amount of income 20-40 percent. People who belong to the group have an average of 57.9 thousand. 40-60% – 83.1 thousand. 60-80% – 95 thousand. 80-90%. – 102.1 thousand. and the top 10%. – 145.3 thousand. euros
The fifth of the population with the lowest accumulated wealth has an average of 8.5 thousand. euros The second fifth represents 28.9 thousand. 46.5 thousand euros for the third party. EUR, for the fourth – 75.1 thousand. euros 80-90% the group has an average of 122.1 thousand. and a tenth of the richest 404.4 thousand. euros
Judging by home ownership, most properties are owned by owners who have purchased real estate (RE) with a loan (on average 94.8 thousand euros). Without a loan, homeowners who manage real estate have an average of 88.3 thousand. EUR, and those who live in rented homes have accumulated 18.8 thousand. euros
The graph of accumulated assets by age group resembles the inverted letter “U”. The homes of people aged 16 to 34 have an average of 65.3 thousand. EUR, 35–44 years – 92.6 thousand. EUR, 45–54 years – 104.4 thousand. EUR, 55-64 years – 94 thousand. EUR, 65–74 years – 87.9 thousand. EUR, and 75.3 thousand and more – 49.3 thousand. euros
The authors of the study explain this distribution by the fact that older people live in apartments of the Soviet era, and low pensions do not allow them to accumulate more wealth.
The study also showed that the median of accumulated assets of tenants is only € 800. This means that half of them have accumulated less than 800 euros in their life.
Ž. According to Maurico, this may be due to the fact that they are very young. On the other hand, perhaps respondents were also not inclined to be completely open.
“I would go so far as to say that not all assets are fairly recognized. Cash held in a bank account or cash cannot be treated as an asset. Perhaps not everything falls into the statistics. However, I would not be surprised if that number was just several times higher (for example, 1.6 thousand euros), “he told Delfi.
Luminor’s chief economist also summarized that these households live “from salary to salary.”
Such a life can cause more stress. The golden rule is that you must have enough savings for half a year. Since the person does not have their own property, the rent must also be included here. It is a half year rent plus food, plus other basic expenses; It would definitely cost more than 800 euros, “he said.
Some say they receive no income
The survey also provides data on annual household income. 20 percent lower. receives an average of 600 euros per year, the second fifth – 4.1 thousand. EUR, the third – 7.2 thousand. EUR, the fourth – 12.4 thousand. euros The two groups with the highest incomes represent 20 thousand. EUR and 40.3 thousand. by year.
The schedule is much more even for groups of accumulated assets. 20 percent lower. receives an average of 8.2 thousand. EUR per year, 20-40% group – 8 thousand. 40-60% – 9.6 thousand. 60-80% – 12.7 thousand. 80-90%. – 13.4 thousand. 90-100% – 17.6 thousand. euros
Homeowners in Lithuania receive an average of 9.7 thousand. EUR per year, owners with a loan: 20.6 thousand. EUR, and tenants – 9 thousand. euros
The youngest age group receives an average of 13.1 thousand per year. EUR, people from 35 to 44 years old – 14.6 thousand. EUR, 45–54 years – 13.1 thousand. EUR, 55–64 years – 9.9 thousand. EUR, 65-74 years – 7 thousand. EUR, and those over 75 years – 4.9 thousand. euros
Interestingly, the mean annual income of those who earn less is reported in the study as € 0. That means that half of them say they get no income.
Ž. Maurice said it simply cannot be. “There are various benefits and bonuses. “It is especially unlikely, of course, to have a survey here, and it should be evaluated accordingly,” he warned. These people are likely to receive “informal” income, so they are not mentioned in the survey.
Sigismund Mauricas
© DELFI / Josvydas Elinskas
Inequality is forming
Ž. Mauricas said that Lithuania is characterized by high income inequality, when wealth inequality remains low. But over time, the situation can change.
“Wealth inequality is emerging,” he said. Mauricas The economist said it was an important signal for politicians.
“When it comes to reducing income inequality, it is often said that we will only tax the wealthy and then increase redistribution. But those who do not necessarily earn higher incomes are not wealthy.
Also, because there is so much shade, only official income may be taxed. At that time, the unofficial income will remain tax free.
Therefore, for example, when it comes to property taxes, it should be universal, because the distribution is small, “said the interlocutor.
Lithuanian households also stand out from other EU countries because they have very few financial assets (without stocks, bonds, etc.), which also shows a low level of financial education for the population.
“The accumulation of assets is 2.7 times, the accumulation of income is 3.9 times (now smaller, because here are the data for 2017), and the accumulation of financial assets is up to 10 times,” Ž. Mauricas
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