Over the past few years, the attitude of Baltic residents towards personal financial management has been gradually evolving. While building emergency savings was until recently the primary financial goal for most people, an increasing number are now taking the next step by exploring investment opportunities and the capital markets. However, the transition from saving to investing has not been uniform – more than half of Baltic residents have still not invested in any financial instrument. Although the overall trend suggests that the culture of investing is gradually strengthening across the region, investment activity differs significantly between the three Baltic states.
According to the Brand Capital 2025 Brand and Consumer Lifestyle Survey1, the first step in personal financial planning for Baltic residents remains the creation of an emergency savings fund, cited by 51.1% of respondents. Investment activity across various capital market instruments, however, remains uneven. In 2025, an average of 16.7% of Baltic residents invested in equities, while bond investment activity showed a slight increase – from an average of 6.5% in 2024 to 6.7% in 2025. Nevertheless, more than half (57.4%) of Baltic residents had not invested in any financial instrument in 2025, compared with 54% in 2024. As a result, the proportion of investors in the Baltics declined from approximately 46% to 42.6% over the course of the year.
“The decline in investment activity, particularly in the capital markets, may partly be explained by the lack of new, high-profile IPOs in the Baltics that capture broad public interest. In 2024, the public offering of Eleving Group provided a significant boost to market participation, while no comparable event took place in 2025. At the same time, the Baltic bond market continued to develop, although many people still perceive bonds as a rather conservative or even ‘boring’ investment because they are not associated with the prospect of rapid returns. However, long-term wealth creation depends precisely on making regular investments in stable financial instruments and maintaining a well-diversified portfolio,” says Kristiāna Janvare Head of Investment Division at Signet Bank.
The most significant year-on-year decline in the share of investors was recorded in Estonia, where it fell from 48.9% in 2024 to 41.3% in 2025. In Latvia, the proportion decreased from 46.9% to 42.6%, while Lithuania was the only Baltic country to record an increase in investment activity, rising from 42.3% in 2024 to 43.8% in 2025.
Looking at investment trends over a three-year period, the proportion of non-investors in Latvia declined from 60.4% in 2023 to 57.4% in 2025. In contrast, the share increased from 54.6% to 58.7% in Estonia and from 55.0% to 56.2% in Lithuania over the same period. These figures demonstrate that the development of investment habits across the Baltics remains uneven and is influenced by factors such as market opportunities, public sentiment, and investors’ willingness to take financial risks.
We Know More, But We Still Invest Cautiously
Financial literacy across the Baltics remains relatively high, although residents’ self-assessment of their financial knowledge was slightly lower in 2025 than in 2024. The average financial literacy self-rating across the region stands at 57.7%, down 4.9 percentage points year-on-year. Estonians rate their financial knowledge the highest at 60.4%, followed by Latvians at 58.0% and Lithuanians at 54.8%.
Despite this relatively strong level of financial confidence, nearly half of respondents still lack an adequate financial safety cushion. Half admit that they typically spend their monthly salary within the same month, while more than one-third worry about their ability to pay bills on time. This suggests that ensuring short-term financial stability remains the primary priority for many households.
“The survey findings confirm that interest in investing is gradually increasing across the Baltics, yet a substantial gap remains between financial knowledge and practical action. Many people understandably focus first on building financial security, and this is an important first step. At the same time, it is essential to reinforce the understanding that saving and investing are not alternatives but complementary stages of personal financial management. An emergency fund provides stability, while purposeful long-term investing enables individuals to build wealth and strengthen their financial resilience,” says Kristiāna Janvare.
The Most Popular Investments: Third-Pillar Pension Funds and Equities
Across all three Baltic countries, the most popular investment remains participation in third-pillar pension funds. These are used by 28.1% of Latvians, 26.8% of Estonians, and 19.4% of Lithuanians. This indicates that most residents enter the world of investing through long-term savings products with relatively conservative risk profiles.
Equities are the second most common investment choice. Among Estonians, 23.2% invest in stocks, while the figures are almost identical in Latvia and Lithuania, at 13.4% and 13.5%, respectively. Estonia continues to lead the region in retail investor participation, supported by its longer capital market tradition and a stronger culture of investing that has developed over several decades.
Although the Baltic corporate bond market has expanded rapidly in recent years – broadening both financing opportunities for local businesses and the range of investment products available to retail investors – bonds are still chosen by a relatively small share of the population. They are held by 9.4% of Lithuanians, 5.9% of Estonians, and 4.7% of Latvians.
“Investment habits develop gradually, and significant differences remain across the Baltic countries. In Estonia, equity investing is particularly popular, largely due to the historical performance of major listed companies. Success stories such as the more than tenfold increase in Hansabank’s share price in the late 1990s helped build confidence in long-term equity investing. It is also interesting to see how Lithuanians, who are active investors across virtually all financial instruments, have increasingly embraced debt instruments in recent years – not only bonds but also debt investment platforms. A market that was once largely reserved for professional and affluent investors has become more democratic and accessible to retail investors throughout the Baltics. Latvians, meanwhile, continue to favour diversified, professionally managed investments such as third-pillar pension funds and unit-linked life insurance. These products often serve as the first step before individuals begin investing directly in equities or bonds. Initial investments in stocks are also frequently made in well-known domestic companies,” explains Kristiāna Janvare.
Looking ahead, investment behaviour across the Baltics will be shaped by several key factors: the ability to translate financial literacy into practical action, the continued development of digital investment solutions, a growing number of local companies entering the capital markets, and increasing public trust in the financial sector. As more people see positive investment success stories and recognise that investing can begin with relatively small amounts, the number of retail investors is expected to grow steadily, further strengthening the investment culture across the Baltic region.
