Latvian residents in the Baltics are the least likely to make savings for unforeseen expenses

Latvian residents save for unforeseen expenses less often than in neighbouring countries, according to a survey by Luminor bank*. Almost half or 43% of the population admit that funds are postponed irregularly, without a specific routine, but a significant part have never accumulated at all. Compared to Lithuania and Estonia, these indicators are the lowest in the Baltics, explains Kaspars Lukačovs, Head of Private Lending at Luminor Bank in the Baltics.

Financial literacy in Latvia remains a challenge

The results of the population survey show that almost half of the Latvian population makes savings irregularly, 43% admit it. Also, almost a fifth of the population, or 17%, have never saved funds for unforeseen expenses, and 14% are able to regularly postpone more than a tenth of income. In turn, in Lithuania and Estonia, the population shows stronger saving habits, regularly devoting a significant part of their income to savings, in Lithuania 23%, while in Estonia 17% of the population is able to regularly postpone more than a tenth of their income.

These data show that although irregular savings are common in the Baltic States, there is still a particularly high potential in Latvia for promoting the financial literacy of the population. Citizens who do not have savings may be more likely to find themselves in situations where borrowing is used to cover unforeseen expenses.

Men are more likely to postpone regularly

The data also reveal several trends in different groups of society in Latvia. Men are more likely than women to regularly postpone more than a tenth of their income (18% versus 11%). Irregular savings, on the other hand, are more characteristic of women – almost half or 46% admit it, while among men this indicator is 40%.

The relationship between income levels and savings habits is very clear. At the lowest income, which does not exceed 550 euros per month, only 9% of the Latvian population is able to postpone more than a tenth. At higher incomes, this proportion increases significantly – in the income group from 751 to 1000 euros, there are already 19% of such people, at 1250-1500 euros, and above it about a quarter of the Latvian population regularly deferres at least 10% of their income.

In Latvia, young people under the age of 30 accumulate the most actively – in this group, 19% regularly postpone more than 10% of their income. However, with each subsequent decade, this indicator decreases, and after the age of 50 the amount of savings becomes significantly less. People over 60 years of age are more likely than others to indicate that they feel safe enough with the existing level of savings and no longer increase them.

Although Latvia is currently lagging behind its Baltic neighbours, the data show that the behaviour of the population changes with the increase in income and the activity of the younger generation in savings. For Latvia, these results serve as a reminder that financial literacy of the population remains a challenge and strengthening the savings culture is an important task.

*Luminor bank's survey in the Baltics was conducted in September 2025 in cooperation with the research agency Norstat, surveying a total of 3002 respondents aged 18-74 online.