The object of research – Lithuanian private pensions funds The aim of research is to establish the use of Lithuania pensions funds to the Lithuanian retirement pension system and their influence to the capital market. Objectives: oTo make more accurate the pension fund concept; oTo analyse and evaluate different welfare state traditions and systems of retirement provision; oTo provide an analysis of advantages and disadvantages of private pensions funds; oTo evaluate Lithuanian private pensions funds activity; oTo consider the effect of pensions on Lithuanian capital market. Methods of the research: scientific literature methods of the research - logical analysis and synthesis; different countries experience comparative analysis; statistical calculation of dimensions (dynamics, stucture, comparison); the calculation of the average; data graphic representation; generalization of the final results and the formulation of conclusions. The period of research is 1999-2005 years.