Where the pension money actually went.

Back in May I asked what happens when up to €5 billion of Pillar II savings gets released into the economy. The Bank of Lithuania numbers are in, and the answer is less dramatic than the debate was:

• more than €3 billion withdrawn, by over half a million people,

• about 72% of it still sitting in bank accounts,

• €450 million taken out in cash, only around 1% reinvested.

So most of the "stimulus" is parked, not spent. The governor's view is that if €0.5 to 1.5 billion reaches consumption, it covers the hit from energy prices. Maybe. I'd watch deposits, not shop tills.

Source: https://www.lrt.lt/en/news-in-english/19/2963125/lithuanians-withdraw-eur3-billion-or-3-of-gdp-from-pension-funds